Regulating Cryptocurrencies & Stop Creating Confusion About Cryptos
Regulating Cryptocurrencies & Stop Creating Confusion About Cryptos
The Issue
A cryptocurrency, crypto-currency, or crypto is a collection of binary data which is designed to work as a medium of exchange. Individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Cryptocurrencies are generally fiat currencies, as they are not backed by or convertible into a commodity. Some crypto schemes use validators to maintain the cryptocurrency. In a proof-of-stake model, owners put up their tokens as collateral. In return, they get authority over the token in proportion to the amount they stake. Generally, these token stakers get additional ownership in the token over time via network fees, newly minted tokens or other such reward mechanisms. Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). database When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
So now, we know what is crypto currency, thanks to Wikipedia, we know now there is a lot to the technology behind these crypto currencies, let's know how crypto currencies are revolutionary:
1: If you have a computer or laptop, with decent specifications for say: 8GB ram, i3 or i5, HDD and GPU (example : RTX 2090) - if you're Gpu has a good VRam then search in Google about Low Dag File Crypto To Mine, if your VRam is 4GB, go for crypto with 2-3GB of VRam requirement, then go to it's website and read about it's functionality, then download it's *Mining Software* (as we are looking into *Proof of work* crypto right now) start the miner follow the procedure, once your miner finds a block, you get a reward in that crypto which you are mining, then go to coinmarketcap and look for the market where that crypto is being exchanged to fiat coin like USDT. Exchange your mined crypto to USDT, now you can transfer your USDT (I prefer transferring tron for low transaction fees between exchanges) sell USDT or tron to INR then withdraw to bank account. Sweet. So what's the problem of us using this technology if the world is using the same?
Let's talk about another scenario:
2) In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash.Later, in 1995, he implemented it through Digicash, an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.
In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a Cryptocurrency system, first publishing it in an MIT mailing list and later in 1997, in The American Law Review.
In 1998, Wei Dai published a description of "b-money", characterized as an anonymous, distributed electronic cash system. Shortly thereafter, Nick Szabo described bit gold.Like bitcoin and other cryptocurrencies that would follow it, bit gold (not to be confused with the later gold-based exchange, BitGold) was described as an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published.
In 2009, the first decentralized cryptocurrency, bitcoin, was created by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme.In April 2011, Namecoin was created as an attempt at forming a decentralized DNS, which would make internet censorship very difficult. Soon after, in October 2011, Litecoin was released. It used scrypt as its hash function instead of SHA-256. Another notable cryptocurrency, Peercoin, used a proof-of-work/proof-of-stake hybrid.
Again Thanks To Wikipedia.
Highlights:
In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the Legislative Assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency as such.
In August 2021, Cuba followed with Resolution 215 to accept Bitcoin as legal tender, which will circumvent U.S. sanctions.
Formal Definition Of Cryptocurrency :
According to Jan Lansky, a cryptocurrency is a system that meets six conditions:
The system does not require a central authority; its state is maintained through distributed consensus.
The system keeps an overview of cryptocurrency units and their ownership.
The system defines whether new cryptocurrency units can be created. If new cryptocurrency units can be created, the system defines the circumstances of their origin and how to determine the ownership of these new units.
Ownership of cryptocurrency units can be proved exclusively cryptographically.
The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.
Architecture Of Cryptocurrency:
Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the US Federal Reserve System, corporate boards or governments control the supply of currency. In the case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto.
Blockchain:
The validity of each cryptocurrency's coins is provided by a blockchain. A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography.Each block typically contains a hash pointer as a link to a previous block,a timestamp and transaction data.By design, blockchains are inherently resistant to modification of the data. It is "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way".blockchain For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.
Blockchains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a blockchain.
Nodes:
Nodes
In the world of Cryptocurrency, a node is a computer that connects to a cryptocurrency network. The node supports the relevant cryptocurrency's network through either; relaying transactions, validation or hosting a copy of the blockchain. In terms of relaying transactions each network computer (node) has a copy of the blockchain of the cryptocurrency it supports, when a transaction is made the node creating the transaction broadcasts details of the transaction using encryption to other nodes throughout the node network so that the transaction (and every other transaction) is known.
Node owners are either volunteers, those hosted by the organisation or body responsible for developing the cryptocurrency blockchain network technology or those that are enticed to host a node to receive rewards from hosting the node network.
Timestamping:
Timestamping
Cryptocurrencies use various timestamping schemes to "prove" the validity of transactions added to the blockchain ledger without the need for a trusted third party.
The first timestamping scheme invented was the proof-of-work scheme. The most widely used proof-of-work schemes are based on SHA-256 and scrypt.
Some other hashing algorithms that are used for proof-of-work include CryptoNight, Blake, SHA-3, and X11.
The proof-of-stake is a method of securing a cryptocurrency network and achieving distributed consensus through requesting users to show ownership of a certain amount of currency. It is different from proof-of-work systems that run difficult hashing algorithms to validate electronic transactions. The scheme is largely dependent on the coin, and there's currently no standard form of it. Some cryptocurrencies use a combined proof-of-work and proof-of-stake scheme.
Use Cases Of Some "Altcoins":
XRP price rally imminent as SBI Holdings remains bullish on Ripple
Zilliqa Encouraging Investment From Uber, Airbnb And SpaceX
Source: https://cryptodaily.co.uk/2019/01/zilliqa-encouraging-investment-from-uber-airbnb-and-spacex
How to avoid crypto based scams:
Source: https://in.pcmag.com/security/146195/how-to-avoid-cryptocurrency-scams
So, here we get basics of crypto currencies, the Indian Government is confused about crypto currencies and we are not getting clear picture which currencies are being considered as *Private cryptos* according to Reserve Bank of India or Indian Government, apart from this what I know is there are some *Privacy* oriented coins like monero, grin etc, if the government is having problem with the *privacy concerned* coins then the government can ask the exchanges to remove these coins instead playing the monopoly and taking control of our *Free Will*
Cryptocurrencies need regulation, take example of El Salvador, also let's highlight how RBI is allowing illegal businesses in India whereas trying to Ban Crypto currencies:
Chinese loan apps misuse KYC details of Indians to set up fake bank accounts
Many illegal loan apps got registered under Reserve Bank of India, they all harassed the borrowers in lockdown period, no police officer or RBI was concerned about it, many females who were unable to pay small amount of 2000₹ the illegal companies forced these innocent women to do nude video call, the writer of show Tarak Mehta Ka Oolta Chashma : Abhishek Makhwana Commited Suicide Due To Harassment Done By These Apps, Many People Are Suffering, There Is a loan app 'Mpokket' who's lender is a chemical company : Jalan Chemical Industries Private Limited, Victims were also complaining to RBI, but RBI closed the complains without any notification to the victims, the police cyber crime did not entertain the victims, in Hyderabad ₹21000 crores was seized from people running some illegal loan apps, a guy caught in Delhi airport running illegal loan apps, and now RBI launched working committee for loan apps, whereas trying to ban Crypto currencies.
Note: CBDC will be manipulated by the big shots, let's raise the voice, Supreme Court already lifted the ban and going against the court's decision is contempt of court.
2,550
The Issue
A cryptocurrency, crypto-currency, or crypto is a collection of binary data which is designed to work as a medium of exchange. Individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Cryptocurrencies are generally fiat currencies, as they are not backed by or convertible into a commodity. Some crypto schemes use validators to maintain the cryptocurrency. In a proof-of-stake model, owners put up their tokens as collateral. In return, they get authority over the token in proportion to the amount they stake. Generally, these token stakers get additional ownership in the token over time via network fees, newly minted tokens or other such reward mechanisms. Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). database When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
So now, we know what is crypto currency, thanks to Wikipedia, we know now there is a lot to the technology behind these crypto currencies, let's know how crypto currencies are revolutionary:
1: If you have a computer or laptop, with decent specifications for say: 8GB ram, i3 or i5, HDD and GPU (example : RTX 2090) - if you're Gpu has a good VRam then search in Google about Low Dag File Crypto To Mine, if your VRam is 4GB, go for crypto with 2-3GB of VRam requirement, then go to it's website and read about it's functionality, then download it's *Mining Software* (as we are looking into *Proof of work* crypto right now) start the miner follow the procedure, once your miner finds a block, you get a reward in that crypto which you are mining, then go to coinmarketcap and look for the market where that crypto is being exchanged to fiat coin like USDT. Exchange your mined crypto to USDT, now you can transfer your USDT (I prefer transferring tron for low transaction fees between exchanges) sell USDT or tron to INR then withdraw to bank account. Sweet. So what's the problem of us using this technology if the world is using the same?
Let's talk about another scenario:
2) In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash.Later, in 1995, he implemented it through Digicash, an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.
In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a Cryptocurrency system, first publishing it in an MIT mailing list and later in 1997, in The American Law Review.
In 1998, Wei Dai published a description of "b-money", characterized as an anonymous, distributed electronic cash system. Shortly thereafter, Nick Szabo described bit gold.Like bitcoin and other cryptocurrencies that would follow it, bit gold (not to be confused with the later gold-based exchange, BitGold) was described as an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published.
In 2009, the first decentralized cryptocurrency, bitcoin, was created by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme.In April 2011, Namecoin was created as an attempt at forming a decentralized DNS, which would make internet censorship very difficult. Soon after, in October 2011, Litecoin was released. It used scrypt as its hash function instead of SHA-256. Another notable cryptocurrency, Peercoin, used a proof-of-work/proof-of-stake hybrid.
Again Thanks To Wikipedia.
Highlights:
In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the Legislative Assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency as such.
In August 2021, Cuba followed with Resolution 215 to accept Bitcoin as legal tender, which will circumvent U.S. sanctions.
Formal Definition Of Cryptocurrency :
According to Jan Lansky, a cryptocurrency is a system that meets six conditions:
The system does not require a central authority; its state is maintained through distributed consensus.
The system keeps an overview of cryptocurrency units and their ownership.
The system defines whether new cryptocurrency units can be created. If new cryptocurrency units can be created, the system defines the circumstances of their origin and how to determine the ownership of these new units.
Ownership of cryptocurrency units can be proved exclusively cryptographically.
The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.
Architecture Of Cryptocurrency:
Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the US Federal Reserve System, corporate boards or governments control the supply of currency. In the case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto.
Blockchain:
The validity of each cryptocurrency's coins is provided by a blockchain. A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography.Each block typically contains a hash pointer as a link to a previous block,a timestamp and transaction data.By design, blockchains are inherently resistant to modification of the data. It is "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way".blockchain For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.
Blockchains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a blockchain.
Nodes:
Nodes
In the world of Cryptocurrency, a node is a computer that connects to a cryptocurrency network. The node supports the relevant cryptocurrency's network through either; relaying transactions, validation or hosting a copy of the blockchain. In terms of relaying transactions each network computer (node) has a copy of the blockchain of the cryptocurrency it supports, when a transaction is made the node creating the transaction broadcasts details of the transaction using encryption to other nodes throughout the node network so that the transaction (and every other transaction) is known.
Node owners are either volunteers, those hosted by the organisation or body responsible for developing the cryptocurrency blockchain network technology or those that are enticed to host a node to receive rewards from hosting the node network.
Timestamping:
Timestamping
Cryptocurrencies use various timestamping schemes to "prove" the validity of transactions added to the blockchain ledger without the need for a trusted third party.
The first timestamping scheme invented was the proof-of-work scheme. The most widely used proof-of-work schemes are based on SHA-256 and scrypt.
Some other hashing algorithms that are used for proof-of-work include CryptoNight, Blake, SHA-3, and X11.
The proof-of-stake is a method of securing a cryptocurrency network and achieving distributed consensus through requesting users to show ownership of a certain amount of currency. It is different from proof-of-work systems that run difficult hashing algorithms to validate electronic transactions. The scheme is largely dependent on the coin, and there's currently no standard form of it. Some cryptocurrencies use a combined proof-of-work and proof-of-stake scheme.
Use Cases Of Some "Altcoins":
XRP price rally imminent as SBI Holdings remains bullish on Ripple
Zilliqa Encouraging Investment From Uber, Airbnb And SpaceX
Source: https://cryptodaily.co.uk/2019/01/zilliqa-encouraging-investment-from-uber-airbnb-and-spacex
How to avoid crypto based scams:
Source: https://in.pcmag.com/security/146195/how-to-avoid-cryptocurrency-scams
So, here we get basics of crypto currencies, the Indian Government is confused about crypto currencies and we are not getting clear picture which currencies are being considered as *Private cryptos* according to Reserve Bank of India or Indian Government, apart from this what I know is there are some *Privacy* oriented coins like monero, grin etc, if the government is having problem with the *privacy concerned* coins then the government can ask the exchanges to remove these coins instead playing the monopoly and taking control of our *Free Will*
Cryptocurrencies need regulation, take example of El Salvador, also let's highlight how RBI is allowing illegal businesses in India whereas trying to Ban Crypto currencies:
Chinese loan apps misuse KYC details of Indians to set up fake bank accounts
Many illegal loan apps got registered under Reserve Bank of India, they all harassed the borrowers in lockdown period, no police officer or RBI was concerned about it, many females who were unable to pay small amount of 2000₹ the illegal companies forced these innocent women to do nude video call, the writer of show Tarak Mehta Ka Oolta Chashma : Abhishek Makhwana Commited Suicide Due To Harassment Done By These Apps, Many People Are Suffering, There Is a loan app 'Mpokket' who's lender is a chemical company : Jalan Chemical Industries Private Limited, Victims were also complaining to RBI, but RBI closed the complains without any notification to the victims, the police cyber crime did not entertain the victims, in Hyderabad ₹21000 crores was seized from people running some illegal loan apps, a guy caught in Delhi airport running illegal loan apps, and now RBI launched working committee for loan apps, whereas trying to ban Crypto currencies.
Note: CBDC will be manipulated by the big shots, let's raise the voice, Supreme Court already lifted the ban and going against the court's decision is contempt of court.
2,550
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Petition created on 23 November 2021