FAQ - Crypto Introduction
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What problems do cryptocurrency address?
Cryptocurrencies can help combat inflation by creating a finite number of Coins or Tokens on a fixed schedule or depending on a particular publicly available and verifiable set of rules. They are also decentralised - meaning they are not tied to any country of origin. They hold and provide universal value and are able to be instantly transferred between people worldwide, saving time and money by cutting out various middlemen (e.g. banks).
Why is blockchain important to cryptocurrency?
Blockchain is very important as it allows for cryptocurrency operations to be decentralized and facilitates instant and secure transactions across the world. In short, blockchain keeps tokens safe and enables transactions with anyone, anywhere, in real time. Some blockchains have smaller transaction fees associated usually with each transaction that can help to operate the network.
Blockchains can also help increase legitimacy by not relying on one verifiable source (central institution) but on many computers spread across the world which can be responsible for checking whether transactions are correct or not. Legitimacy enhances both the stability and comprehensibility. It also leads to networks’ persistence and higher availability.
Is blockchain the best solution for the future?
According to futurist Martin Hiesboeck, blockchain will “change the way stock exchanges work, loans are bundled, and insurances contracted. They will eliminate bank accounts and practically all services offered by banks. Almost every financial institution will go bankrupt or be forced to change fundamentally once the advantages of a secure ledger without transaction fees are widely understood and implemented”. The absence of transaction fees is pivotal in this process since the financial system is built on taking a small cut of your money for the privilege of facilitating a transaction.
At CoinOn we aim to change the traditional models, and let creators obtain money for their favorite projects using a medium of exchange preferred by the community - let it be crypto coin, fiat money, banks, PayPal etc. Blockchain helps us to keep transaction fees as low as possible or be even fee-less within the CoinOn platform. Meaning that if you would like to exchange some tokens of one creator to another tokens, you won’t be paying any fees within CoinOn.