Ethereum is a public, open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. And, Ether is the cryptocurrency generated by the Ethereum platform. AiBB presents a few basic facts about Ethereum that you may not know.
Bitcoin, the mysterious money of the internet, has grown in popularity over the last few years and is still rightfully considered the undisputed king of cryptocurrency.
Here is a collection of information about Bitcoin that you may not have heard yet.
The first Bitcoin transaction was for pizza
Do you know the reason behind the celebration of May 22 as Bitcoin Pizza Day?
Initially, when bitcoins were mined, they became virtually useless as BTCs were as cheap as chips.
However, it was until May 22, 2010, when someone bought something with Bitcoin.
Seven years ago, on this day, someone bought Piazzas with Bitcoin, and the purchase was a big deal because no retailer was accepting Bitcoin for goods and services at that time.
On May 22nd, 10,000 BTCs were spent on two Papa John’s pizza. This was the first official documented purchase of a consume good using Bitcoin.
10,000 BTCs were worth around $41 during that time.
Honey Badger is Bitcoin’s private animal mascot
Honey Badgersare tough cookies. They can withstand severe wounds, bee attacks and poisonous snake bites. This resilient creature seemed an excellent fit for the mascot of Bitcoin, which has survived all kinds of attacks over the years.
Over 184 billion BTCs were accidentally created in 2010 by a bug
This is also known as the value overflow event. The bug resulted in the creation of over 184 billion
Known as the standard overflow event, this bug resulted in the creation of over 184 billion BTCs. Satoshi or a different developer released a patched Bitcoin client that fixed the error within 5 hours of occurrence by ignoring all the excess coins. Most of the miners willfully accepted this new client and the error was forked out of the blockchain.
There will only be 21 million bitcoins
The supply of bitcoins is limited.
Currently, 16.3 million bitcoins have already been mined and are in transactions. The last Bitcoin to be mined is going to happen in 2140. After that, no new Bitcoin is supposed to come into existence.
Bitcoins cannot be banned
Due to the nature of Bitcoin, there is a regular fear on bitcoins getting banned. This animosity towards Bitcoin because of its operation outside the jurisdiction of a traditional banking system.
However, the basic design of it is such that it can never be banned, it can only be controlled. As long as you have an internet connection and a Bitcoin wallet, you can get yourself involved with Bitcoins.
Only 10% of Bitcoins is used for crime
Although there is still a long-held misconception that Bitcoin is primarily used for illegal transactions in the darknet, this myth was recently removed by a special agent of the US Drug Enforcement Agency (DEA).
According to the Cyber Investigative Task Force, an inter-agency collaboration involving DEA, the FBI and ATF, 90% or more of Bitcoin volumes are not fully related to drug purchases. Bitcoin used for illegal activities on the darknet rose between 2011 to 2012 but then, it became very negligible.
Bitcoin is the most popular crypto investment asset pulling in substantial annual returns in the long run.
At the same time, it is also widely used as digital money. Here are a few interesting things you probably didn’t know you can do with Bitcoin.
Bitcoin, the mysterious “money of the internet” has steadily risen in popularity over the last 8 years and is still rightfully considered the undisputed king of cryptocurrencies. AiBB has come up with an infographic highlighting a few basic bitcoin facts that you may not even know.
Litecoin (LTC) is one of the most prominent digital assets in the crypto market. Created by Charlie Lee in 2011, Litecoin is considered the silver to BTC’s gold.
How does LTC work?
Lee released Litecoin after the creation of his own digital asset known as Fairbix. Fairbix failed, but Litecoin managed to attract the attention of many people. Even though Litecoin had many similarities to bitcoin, it also had some notable differences.
Litecoin was released as an open-source client on GitHub on October 7, 2011. A few days later, Litecoin became operational.
In comparison to Bitcoin, Litecoin has an algorithm called Scrypt, a total supply of 84 million, and blocks of 2.5 minutes. On the other hand, bitcoin has a data mining algorithm called SHA-256, a total supply of 21 million, and a block time of 10 minutes.
Although Bitcoin and Litecoin work similarly, Litecoin lags behind in terms of halves. Bitcoin will experience its 3rd reduction by half next year and Litecoin experienced its 2nd block reward reduction.
Every 4 years, Litecoin and Bitcoin experience a brief reduction in rewards as received by miners, which is one of the most important attributes of some cryptocurrencies.
With lower issuance and increased demand for digital currency, the price of virtual currency is expected to rise faster in the event of a market demand shock. There will be fewer LTCs available to minors on the market for more investors.
Litecoin has also implemented atomic swaps, which allow individuals to exchange coins between chains without having to depend on a third party.
Speed and Transaction Costs
Litecoin has improved transaction speeds in comparison to Bitcoin and it also works for cheaper fees. Litecoin blocking times tend to be close to 2.5 minutes, fluctuating in a narrow range between 2.2 and 2.75 mins. This is exceptionally useful for almost all merchants and ones who accept Litecoin will receive their digital assets in just five minutes.
Litecoin exhibits this advantage over Bitcoin. Bitcoin requires ten minutes to receive a single confirmation. In addition, the fees paid by users are much cheaper than on the Bitcoin network. Average LTC transaction fees are currently $ 0.059, while Bitcoin has average transaction fees of $ 1.54.
In addition, Litecoin is also one of the most liquid digital currencies on the market. It is possible to buy or sell it on different exchanges around the world quickly and securely.
To be able to increase the number of transactions that the network can handle, Litecoin introduced SegWit (Segregated Witness), which allows transactions to be smaller, resulting in more space per block.
Although digital currency offers fast and cheap transactions, the developers of Charlie Lee and Litecoin had to work to be able to avoid the flood attacks. These attacks are linked to a malicious entity which processes several transactions to clutter the network. This increases costs and also slows the entire network.
Bitcoins and Litecoins have a lot in common. Both of them are cryptocurrencies at the most basic level. While state currencies like the U.S. dollar rely on political and legal mechanisms of value and legitimacy, cryptocurrencies depend only on the cryptographic integrity of the network itself. Even then, both have significant differences between them.
One of the primary differences between these two cryptocurrencies lies in the total number of coins that each of them can produce. And that is precisely where Litecoin stands out.
Bitcoins can never exceed the number of 21 million, while Litecoins can accommodate up to 84 million coins. In theory, this sounds like a significant benefit in favour of Litecoin but in reality, this may not be the case.
After all, Bitcoins and Litecoins are divisible into almost infinitesimal amounts. The minimum amount of transferable Bitcoin is 0.00000001 Bitcoins colloquially called a “satoshi”.
Although technically, transactions occur instantly on the Bitcoin and Litecoin networks, it takes time for these transactions to be confirmed by other participants in the network. The average time to confirm Bitcoin network long-term transactions is just over 10 minutes per transaction, although this can vary greatly when traffic is high.
The equivalent figure for Litecoin is around 2.5 minutes. This difference could, therefore, make Litecoin more attractive to traders. For example, a merchant who sells a product in exchange for Bitcoin would have to wait almost four times longer to confirm payment than if the same product were sold in exchange for Litecoin. On the other hand, traders can always choose to accept transactions without waiting for any confirmation. The security of these zero-confirmation transactions is the subject of debate.
The most basic technical difference between Bitcoin and Litecoin is by far the different cryptographic algorithms they use. Bitcoin uses the longstanding SHA-256 algorithm, while Litecoin uses a relatively new algorithm called Scrypt.
The main practical significance of these different algorithms is their impact on the process of “mining” new parts. In Bitcoin and Litecoin, the transaction confirmation process requires significant computing power. Certain members of the monetary network, called miners, allocate their IT resources to confirm the transactions of other users. These miners, in return, are rewarded by earning certain units of the currency they have mined.
Also, the SHA-256 is a more complicated algorithm than Scrypt, while allowing a greater degree of parallel processing. Therefore, Bitcoin miners have used increasingly sophisticated methods in recent years to mine Bitcoins as efficiently as possible.
The commonest method for bitcoin mining is to deploy ASIC (Application Specific Integrated Circuits). These are hardware systems which, unlike the simple CPUs and GPUs that preceded them, can be custom designed to extract Bitcoins. The practical consequence of this is that the exploitation of Bitcoin has become increasingly out of reach for the everyday user.
Scrypt, on the other hand, was designed to be less sensitive to the types of custom hardware solutions used in ASIC-based mining. This has led many commentators to consider Scrypt-based cryptocurrencies such as Litecoin to be more accessible to users.
So that’s basically it. We hope some of the basic concepts are clear to you now. Remember, now you can increase your crypto knowledge on the AiBB app itself. Our “learn” module is more than capable of clearing all your doubts about most cryptocurrencies starting from Bitcoin to Ethereum to Litecoin and many more. Download the app NOW!
AiBB, the all-in-one application housing the tools and resources you need to enrich your knowledge, grow your portfolio and become a successful crypto trader, has announced partnership with Blockgeeks, the premier source for blockchain and cryptocurrency education.
Blockgeeks exhibits a wide catalogue of course materials related to cryptocurrency and blockchain that has continued to expand over time. Now access all of these materials for free right within the AiBB app itself.
Just log into the AiBB app on your phone and go to “Learn” and that’s basically it. You will see all course materials on the screen itself. There’s a search feature on top that you can use to search for the materials you want. It’s pretty easy and convenient to use.
Kelghe D’Cruz, the CEO of AiBB said, “We are trying to bring the knowledge of decentralized currency to everyone. And I believe this small step is going to help our users a lot in future.”
AiBB is a multi-protocol utility wallet that combines the power of decentralized and centralized technology in a simple & secure mobile application. This all-in-one application houses the tools and resources you require to enrich your knowledge, grow your portfolio and become a successful trader.
We’re always aiming to make AiBB secure and feature-packed. To make sure you don’t miss a thing, simply keep your updates turned on.
Every year, countless people lose their Ethereums as a result of hacking, fraudulent websites and sometimes, through simple negligence. In this article, we have offered a few simple steps to keep your Ethereum safe. Let’s start.
Be careful who you talk to about your Ethereum assets
When it comes to crypto, the first rule of safety is not to disclose to anyone the number of crypto you have. This is applicable not only to the online world via social media or forums, but also to your family and your circle of friends.
That being said, it’s amazing to openly discuss about cryptocurrency and blockchain, and the fact that you hold Ethereum. In fact, if you’re attending a blockchain event or meeting, this will likely be the main topic of discussion with other participants.
However, if you want to keep your Ethereum safe, you should never comment on exactly how much you hold or give the impression that you could be holding a large amount of Ethereums.
Remember to store your ETH in a crypto wallet
A crypto wallet is the safest way to store your Ethereums. It can help in securely storing your private keys, keeping them out of the malicious hands of hackers.
There are many cryptocurrency wallets, and most of them support all major cryptocurrencies. AiBB, the all-in-one crypto wallet, is certainly among the best.
Beware of phishing attacks
In a phishing attack, the hacker uses sophisticated methods to pretend to be someone else in order to steal your Ethereum. This can be done in many ways and has become much simpler with the widespread adoption of the Internet since the attacker can hide behind a computer screen.
The attacker sends you an email claiming to be the representative of a cryptocurrency exchange that you use, in order to steal your password. Social media scams is another one of the most popular phishing strategies.
In this attack, the hacker develops “Twitter robots” who claim to be the official account of a well-known person in the crypto space, automatically responding to other tweets with “Giveaways”.
However, these gifts are nothing more than an elaborate hold-up because they ask people to send a certain amount of ETH to an address they control and expect to recover 10 times the amount.
Do not keep your Ethereums on the crypto exchange
Due to the confusing nature of some Ethereum wallets, especially for newbies, many ETH holders choose to keep their coins on the exchange.
This is often considered the easiest way to store cryptocurrency. However, this practice is very dangerous.
The first major cryptocurrency exchange hack occurred in 2013 when 850,000 Bitcoins were stolen from Mt Gox. At the time, Mt Gox was the largest cryptocurrency exchange, and many people lost all of their coins which, a few years later, were worth a fortune.
Later in 2016, Bitfinex, the largest cryptocurrency exchange of the time, was also compromised and 120,000 Bitcoins were stolen. The exchange, instead of covering for the losses, reduced the balance of all of its users by 35%.
Therefore, a wallet is always the best and safest choice.
With that, we will close this post. I hope you read that right.
Bitcoin is similar to gold in several ways. Like gold, they cannot be created in an arbitrary way.
In fact, only 21 million bitcoins can exist on this planet. Once miners reach that number, the world’s supply will essentially be depleted, unless the bitcoin protocol is changed to allow more supply.
With the first 18 million bitcoins mined in just a decade, and with just 3 million more coins to go, it may seem like the final number is not too far away. True, but only in a certain sense. The BTC network is more complicated than that.
BTC mining awards
The BTC mining process that rewards miners with bitcoin pieces upon successful verification of a block adapts over time. When Bitcoin was first launched, the reward was 50 BTCs. A few years later, in 2012, it halved to 25 BTCs. In 2016, it again halved to 12.5 BTCs.
In 2020, the reward will again decrease to 6.25 BTC. It will continue to halve every four years or so until the final bitcoin is mined. This means that the reward for miners is getting smaller and smaller over time, and it also takes longer to reach the final bitcoin than it seems based on the pace so far. In reality, it is unlikely that the final bitcoin will be mined before around 2140, unless the bitcoin network protocol is changed by then.
Effects of Bitcoin over offer on Bitcoin miners
It may seem that the group of people most directly affected by the bitcoin supply limit will be the bitcoin miners themselves. On the one hand, there are critics of the protocol who say that miners will be forced to withdraw from the overall rewards they receive for their work once the supply of bitcoins reaches $ 21 million in circulation.
Without the incentive provided by a bitcoin price at the end of a rigorous and costly mining process, miners will not be forced to continue supporting the network. Because mining is not only a process by which new tokens are introduced into the ecosystem, but above all it is the way in which the decentralized blockchain is taken care of and maintained in the absence of a central bank or another single authority, if the miners give up their work the network will probably move towards centralization or will collapse completely.
Even when the latest bitcoin has been produced, miners will likely continue to participate actively and competitively and to validate new transactions. The reason is that each bitcoin transaction is associated with small transaction fees. These fees, although they now represent a few hundred dollars per block, could potentially reach several thousand dollars or more per block as the number of transactions on the blockchain increases and the price of bitcoin increases. Ultimately, it will operate as a closed economy where transaction costs are valued like taxes.
However, it should be noted that it will take well over 100 years before the bitcoin network mines its last token. It is also important to note that the bitcoin network itself is likely to change considerably by then.
Given what has happened to bitcoin in just a decade, hard forks, new protocols, new methods of recording and processing transactions, and a number of other factors can impact the process. extraction.
Keep your bitcoins safe on the AiBB wallet
AiBB is a multi-protocol utility portfolio that combines the power of decentralized and centralized technologies in a simple and secure mobile application. Download the app here.
It was in 2017 when cryptocurrencies soared to the next level. As a result, their importance developed a lot in comparison to the way it was before.
So, what does the future hold in store for us? At AiBB, we have highlighted a few key points for your reference.
Everyone will start using cryptocurrencies – and they may not even know it
Although it’s been a decade since cryptocurrencies came into existence, there are people who don’t know about it. They use the traditional method of transactions to manage the cash flow.
In the future, businesses are expected to start the use of cryptocurrencies as a mode of payment for their services, thus, removing the middleman in the process. This will definitely help in the reduction of cost making their services cheaper to the masses. All of this will happen even when people are not aware of cryptocurrencies.
Bitcoins will reach $ 1 million
By the end of 2020, bitcoins are expected to reach $ 1 million. They can take control of the global economy, thereby increasing demand.
Snapchat owner Jeremy Liew and Peter Smith, co-founder of Blockchain, predicted that by 2030 the price will have reached $ 500,000.
- In the future, Bitcoin will serve as remittances for many people.
- Lack of knowledge can prompt people to buy Bitcoins as a safer investment method similar to gold.
- With smartphone transactions, half of the world will move to non-monetary transactions by 2030.
- Cryptocurrencies are expected to replace Government Fiat currencies.
All Government fiat currencies will cease to exist as people start walking towards cryptocurrencies like Ethereum, Bitcoins, Litecoins, etc. The main reason for this adoption is that cryptocurrencies are considered the reliable storage of value across the country’s borders and political aspects.
If you consider the most popular cryptocurrency, Bitcoin, it reached the top 30 list by exceeding the $10,000 mark. So, most crypto experts predict that these currencies are here to stay by being an alternative to Fiat currencies.
Government agencies are expected to adopt the Blockchain technology.
Most countries having SEC guidelines are expected to start adopting the use of cryptocurrencies for their governments.
All government agencies typically maintain a separate database. Each agency depends on the other for its processes. It has been a tedious process these days. When Blockchain came into existence, the distributed ledger can help in providing effective data management to improve and simplify the process.
The Internet of Things will play a big role in the future of cryptocurrencies
The IoT is already there. When these two giants combine, we can expect a fantastic future for technology without a doubt. According to the recent IDC report, it is expected that Blockchain technology will soon join the Internet of Things.
The primary motto of this IoT integration is to make a secure and scalable framework for communication between these devices. And then, cryptocurrencies also have the stability to make micro-investments for smart devices efficiently.
So that’s basically it. Hope you had a great read.