Digital Currency by James https://padlet.com/ohjames8/omlytzybpv0n9xid en-us 2020-11-30 08:37:16 UTC 2025-11-03 10:38:50 UTC hello@padlet.com Introduction ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/970440469 Welcome to my padlet on digital currencies.  This padlet will present the basics of digital currencies with key takeaways including an understanding of digital currencies, the variants of digital currency (Virtual, and Crypto Currencies) and information regarding issues and their potential solutions.]]> 2020-11-30 08:46:01 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/970440469 Website 1 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/970451481 Digital currency is a form of currency that is only available in a digital or electronic form. It can be used as a method of payment and provide convenience and cost efficiency when making transactions.  There are two types of digital currency, Virtual and Crypto. Virtual is an unregulated form of currency under control of the developer of the currency. Cryptocurrency (a type of virtual currency) uses cryptography to control the management and creation of the currency. 

This website provides information on understanding what a digital currency is and compares it to physical currency. We also get an explanation of the different variants of digital currency (Virtual, and Crypto Currencies).
]]> 2020-11-30 08:50:54 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/970451481 Website 2 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974310481 Cryptocurrencies are a secure method of online transactions. This is done by cryptography, a method of protecting information using code. Cryptocurrencies can be thought of as arcade tokens or casino chips.

Cryptocurrency values are considered speculations to investors as cryptocurrency generates no cash flow. In order to make a profit someone else must buy your currency at a higher price than you. This can be correlated to "the greater fool" theory of investment.

Some reasons why cryptocurrency is so popular includes, supporters liking the decentralized processing, removing banks from managing supply and the security of such currency. of course, potential profits are one of the driving factors as well.

]]> 2020-12-01 04:01:19 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974310481 Website 3 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974396339 Blockchain protocols form the money and make it viable as a currency.  Blockchain protocols provide:
  1.   Unique and non-duplicable
  2.   Non-reputable and impossible to “double spend”
  3.   Scarce and limited in supply
  4.   Durable and immutable
  5.   Divisible and uniform
(BitIRA, 2019)

Each blockchain network of a currency is a  variant of the protocol above.

Miners are what keep the transactions secure. A miners responsibility includes the confirmation of the legitimacy of all transitions in a block, allowing the block to be added to the chain. This is how digital currency is obtained.

Storage of digital currency comes in the for of a digital wallet. These digital wallets come with public and private keys. Public keys can be considered anonymous addresses used to publicize all transactions. Private key contains the access to a wallet and the management of the digital currency.




]]> 2020-12-01 05:02:05 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974396339 Video 1 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974401898 Bitcoin is based on an electronic peer to peer system. When a transaction happens it is broadcasted to the network and all its users. A problem with this system is double spending (when a user spends money on something twice).  This issue is remedied with miners who confirm transactions by solving cryptographic puzzles in exchange for the currency.  These miners ensure the legitimacy of all transactions. 

This video shows the viewer how digital currency is obtained and why this monetary system works. ]]> 2020-12-01 05:05:20 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974401898 Video 2 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974402753 A bitcoin is a statement on  a global public ledger that records every single transaction every made. This public ledger is called the blockchain. When making a transaction, the currency is not directly transferred from one point to the other, rather a statement is made saying an individual sends digital currency to another individual. During this transfer it is publicly announced that a transfer is taking place so that miners ensure that this information is correct, confirming the authenticity of the transaction. 

This video gives an in depth explanation of cryptocurrencies. Using examples and visuals that are easy to understand the view can easily follow along in the video and clear up any confusions they may have about cryptocurrencies. How this video differs is the explanation of using cryptographic hash functions to add information to the block chain and the potential issues and solutions of cryptocurrencies 


]]> 2020-12-01 05:05:53 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974402753 Video 3 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974403510 Digital signatures are one method of verifying transactions. How they work involves private and public keys. A signature is made up of a function involving the transaction and the private key. The public key is used to verify that the transaction actually came from the user with the right private key. Transactions include a unique ID to prevent copies of the same transaction.

Compared to the other videos, this video focuses on how each solution works to a potential problem with digital currency. There is a lot of emphasis on the example of ledgers to explain block chains and how the entire system functions.]]> 2020-12-01 05:06:23 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974403510 Video 4 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974405852 This video shows the view the benefits of using a proof-of-stake  vs proof-of-work technique. It provides an alternative to proof-of-work techniques. Proof-of-stake requires its users to deposit their own currency into the network as stake when they validate a block, ensuring that the profits from validating fraudulent transactions is lower than the transaction amount. 

1. POW encourages mining pools which results in centralization if groups join together to own most of the blockchain allowing for fraudulent activity to occur. 

2. Because of the removal of the competition to solve the function first and a lack of mining a there would be a considerable decrease in electrical consumption. 

3.  POW setups are a lot more expensive than POS setups because mining equipment is not necessary.

This video shows the potential for the Proof-of-Stake technique which solves some problems regarding the Proof-of-Work technique currently in use.


]]> 2020-12-01 05:07:55 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/974405852 Website 4 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/981945117 Digital currencies can be used to purchases various goods. A wallet is required to make transactions. 

Digital currencies do not count as legal tender in Canada.
Automated exchangers or bitcoin ATMs allow for the exchange of cash and bitcoins. 

Digital currencies are subject to the 
Income Tax Act. Anything you buy or sell and even the profits or losses from digital currency must be reported, failing to do so is illegal.

Risks of using digital currency are: 
1. Deposits are not insured
2. High risk investment
3. Non reversible transactions

Tips for using digital currency include:
1. Reading all policies carefully
2. Protecting your wallet
3. Ensure confirmations
4. Check for unexpected fees
5. Ensure someone else can access your wealth incase of death or illness.

This website provides the reader information on how digital currency is handled in Canada and some rules that Canada imposes on digital currency. The reader is also given some risks and tips when using digital currency.

]]> 2020-12-02 22:25:16 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/981945117 Image 1 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/982452171 Cryptocurrency uses encryptions to control and secure all transactions. The blockchain is where these transactions are kept and the verification of these transactions create the currency.

Some traits of crypto currency include no physical property, no intrinsic value and its complete decentralization. ]]> 2020-12-03 03:26:07 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/982452171 Image 2 ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/982471087 This image represents the potential of a 51% attack where a group or single miner acquires 51% of the mining power, effectively controlling the block chain and validating false transactions.]]> 2020-12-03 03:40:08 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/982471087 Reflective Questions ohjames8 https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/982481122 1. What surprised me the most is the complex system involving digital currencies and the usability of these systems in other environments

2. We are in a time where society is very familiar with digital currency and being able to understand something that seems to have caused such a big impact is a good way of learning more about our technological progress.

3. The most important thing to pass on is telling them to do their research. In terms of digital currency I would start with how digital currencies work and their applications in our society. Giving this information will hopefully result in this person researching more about digital currencies preparing them for whatever they wish to do with that knowledge]]> 2020-12-03 03:47:55 UTC https://padlet.com/ohjames8/omlytzybpv0n9xid/wish/982481122