What is virtual currency POS technology
virtual currency is the currency used for electronic circulation. Now the scope of virtual currency is very large, including q-coin, bitcoin and so on. With the development of digital currency, virtual currency is becoming more and more abundant, which may become the mainstream in the future. For example, BTC, EOS, bcbot and so on are not only virtual currencies, but also algorithms, landing projects and technologies
virtual currency is mainly issued by online game service providers to purchase game props, such as equipment, clothing, etc. But at present, the use of virtual currency has gone far beyond this category. Virtual currency can be used to buy game cards, physical objects and download services of some movies and software
extended data:
real risk
as the proct of e-commerce, virtual currency has begun to play an increasingly important role, and it is more and more connected with the real world. However, with the growth of virtual currency, the relevant laws and regulations are lagging behind, which has laid many hidden dangers
fraud
the private transaction of online virtual currency has realized the two-way circulation between virtual currency and RMB to a certain extent. The activity of these traders is to buy all kinds of virtual currencies and procts at a low price, and then sell them at a high price to earn profits. With the increase of such transactions, there are even virtual mints. In addition to the virtual currency provided by the main company, there are also some people who specialize in "virtual coin making" to obtain virtual currency by playing games and then resell it to other players
Taking Wenzhou as an example, there are about seven or eight such "virtual mints" with four or five hundred practitioners. This not only creates a bubble for the price of the virtual currency itself, but also causes trouble for the normal sale of the issuing company. It also provides a platform for selling and collecting money and money laundering for various cyber crimes. p>
impact system
in modern financial system, the issuers of money are generally central banks, which are responsible for the management and supervision of money operation. As the equivalent exchange goods used to replace the real currency circulation on the Internet, the virtual currency on the Internet is essentially the same as the real currency. The difference is that the issuers are no longer central banks, but Internet companies
if the development of virtual currency makes it form a unified market, each company can exchange with each other, or virtual currency is integrated and unified, and all of them are based on the same standard and price, then in a sense, virtual currency is currency, which is likely to form a threat impact on the traditional financial system or economic operation
reference: network virtual currency
POW: full name of proof of work
pos: proof of stake
both of them are the consensus mechanism of blockchain and the bookkeeping method of digital currency
the difference is:
1. POW mechanism: workload proof mechanism, that is, the proof of workload, is the requirement that must be met when generating a new transaction information (that is, a new block) to be added to the blockchain. In the blockchain network based on workload proof mechanism, the ability of nodes to obtain the correct numerical solution to generate blocks by calculating the numerical solution of random hash hash is the specific performance of node computing power
POS mechanism: the proof of rights and interests requires the certifier to provide a certain amount of ownership of cryptocurrency. The operation mode of the proof of rights and interests mechanism is that when creating a new block, the miners need to create a "currency right" transaction, and the transaction will send some coins to the miners themselves according to the preset proportion. According to the proportion and time of token owned by each node, the equity proof mechanism reces the mining difficulty of nodes proportionally according to the algorithm, so as to speed up the speed of searching for random numbersextended materials:
the concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's ideas, the open source software and the P2P network on it were designed and released. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system
unlike most currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction
What does this mean? That is to say, how much money you get depends on the effective work you contribute to mining. In other words, the better the performance of your computer, the more money you will be allocated. This is to allocate money according to your work certificate. Most virtual currencies, such as bitcoin, Leyte and Ruitai, are based on the pow mode (the higher the computing power and the longer the mining time, the more money you get)
pos: proof of stake
What does that mean? In short, it is a system to pay you interest according to the amount and time of currency you hold. In the POS mode of certificate of equity, there is a term called currency age. Each currency has one currency age every day. For example, if you hold 100 currencies for 30 days, then your currency age is 3000. At this time, if you find a POS block, Your currency age will be cleared to 0. Every time you are cleared 365 coins, you will get interest of 0.05 coins from the block (which can be understood as 5% annual interest rate). In this case, interest = 3000 * 5% / 365 = 0.41 coins, which is very interesting. Holding coins has interest, very good!
The essence of money is the general equivalent. In the process of the continuous development and evolution of human history, it has gone through the stage of physical money, the stage of substitute money, and then entered the stage of credit money. In primitive society, people exchanged livestock, salt, shells and other hard to get goods as general equivalents
in the long history, the emergence of metal currency makes the economic life achieve unprecedented prosperity. However, e to the inconvenience of carrying metal money, paper money became the mainstream form of money. With the rapid development of modern information technology, e-money has come into our life
if the evolution process from physical money to value symbol paper money is the first qualitative leap in the history of money development, then the evolution process from paper money to electronic money is the second qualitative leap in the history of money development
from the perspective of money form, physical money itself is a commodity in addition to performing monetary functions; Paper money is a symbolic tool of value for commodity exchange and a credit currency; Electronic currency is the proct of highly developed Internet economy and continuous progress of bank payment and settlement technology. It not only has the function of traditional currency, but also can continuously improve digital currency
At the same time, the virtual money market based on electronic information is also booming. By the end of 2014, the number of Internet users in China had reached 632 million, including 517 million registered users in the online game market and 114.48 billion yuan of sales revenue, an actual increase of 37.7% over the previous yeara huge virtual space based on the Internet has been formally formed. As a kind of virtual currency with intrinsic value, convenient online trading behavior, low transaction cost, and service providers' issuance, it emerges as the times require
first of all, from the functional analysis. Virtual currency is a kind of transaction medium in the Internet virtual space, which has the function of value scale, but the value scale of virtual currency is different from that of legal currency
using virtual currency to purchase virtual procts and services can only be within the scope specified and allowed by the issuer of virtual currency (Internet operator), and the size of this scope depends on the number of virtual procts and services. If the virtual procts and services provided by the website are large enough, the scope of virtual currency will be large
the currency value of virtual currency depends on the pricing of virtual currency by issuers. When no currency can communicate between virtual cyberspace and reality, the pricing of procts and services is still based on real RMB. That is to say, when issuers of virtual currency price their own virtual currency, they should first convert the price of virtual currency based on RMB
Private key: in fact, it is a group of random numbers. We have already introced the random numbers in the blockchain
public key: the private key is generated by elliptic curve encryption algorithm, but the private key cannot be obtained by public key inversion. The function of public key is to encrypt information with one's own private key when dealing with the other party, and then the other party decrypts the original information with one's own public key. This process is commonly known as signature
address: because the public key is too long and inconvenient to use in the transaction, the public key hash is encrypted with sha256, ripemd160 and base58 algorithms to generate the address
first, the random number generator is used to generate a "private key". The subsequent public key and address will be generated by the private key, so the importance of the private key can be summarized in one sentence: & quot; Who has the private key, who has the right to use the wallet& quot;
"private key" is encrypted by elliptic curve algorithm (secp256k1) to generate & #; Public key;. This is an asymmetric one-way encryption algorithm. Knowing the private key can calculate the public key, but knowing the public key can't reverse calculate the private key
"public key" generates "public key hash"
through one-way hash algorithm (sha256, ripemd160), and connects a byte of address version number to the "public key hash" header (for the pubkey address of bitcoin network, The first four bytes of the result are used as the check value of "public key hash" and connected at the end of it
encode the previous result with base58 (customized version of bitcoin) to get the "wallet address"
According to the definition of the European Central Bank in 2012, "a kind of digital currency that is not legally binding, issued and controlled by developers, and accepted and used in specific virtual community members."
at the 2013 congressional hearing, Federal Reserve Chairman Ben Bernanke said that "in the past two decades, virtual currency has been regarded as an electronic currency, or a payment system technology field that has been developing."< In 2013, the financial crime enforcement network (FinCEN) of the U.S. Department of the Treasury defined it as: "virtual currency is a medium of exchange that operates like real currency in some environments, but it does not have all the attributes of real currency." It also has no legal tender status. In 2014, the European Banking authority defined it as "a digital form of value that is not issued by central banks or government departments and is not necessarily associated with legal tender, but it is accepted by natural and legal persons as a means of payment and can be transferred, stored and traded electronically
in Chinese mainland refers to the currency that runs on the Internet, and the famous virtual currency, such as Tencent Inc's Q coins and the grand company's roll, also has virtual currency in online games. Virtual currency is usually used for users to purchase virtual services on the network, such as QQ membership function of Tencent's QQ coin, online game equipment, etc. Virtual currency is usually a means of payment. For example, the Ministry of culture of the people's Republic of China defined it in 2009 as a virtual exchange tool that is issued by online game operators, directly or indirectly purchased by game users using legal tender in a certain proportion, existing outside game programs, stored in servers provided by online game operators in the form of electromagnetic records, and expressed in specific digital units
data source: virtual current from Wikipedia
Mobile payment means that mobile clients use electronic procts such as mobile phones to make e-money payment. Mobile payment creates a new payment method and makes e-money popular. Because of the advantages of convenient and fast payment, eliminating counterfeit money, no change and so on, it is loved by many people< The Ministry of Commerce issued the "overall plan for the pilot project of deepening the innovation and development of service trade in China", and officially announced that the number of digital currency has expanded from the original 4 pilot cities to 28 , which means that digital currency is coming towards us. The same virtual currency and bitcoin, so these virtual currency can replace the status of paper money
Therefore, it is essentially no different from the paper currency RMB, and will not be wildly hyped like bitcoin. In a short period of time, virtual currency can not completely replace traditional currency. There are mainly two constraints: the first is the user's will, not everyone is used to this payment method; the second is the satisfaction of technical conditions, because the speed of transaction payment is mainly limited by the technical realization, and the goal of digital currency is only to replace part of the cash in circulation. So for a long time, it should be used in parallel with banknotes