An Ecoin is an electronic currency.  It is also referred to as E-currency or crypto currency.  It is pretty much like cash for the Internet. Ecoins come in two types, closed network ecoins and open network ecoins.  Examples of closed network ecoin networks are the types of ecoins used for virtual goods for games or on social networks.  In game currency like Facebook credits and Gold for World of Warcraft are examples of closed network ecoins.  The other major type of ecurrency is open network systems.  Bitcoins and litecoins are two types of peer to peer, open network crypto currencies.  Bitcoin is the grandfather of these types of ecoins.  Litecoin is the up and comer.  There are many other types of Ecoins as well.  Each coin has its own flavor.  The major type are outlined in the chart below.

Coin name Blocks Difficulty Network GH/sec
Anoncoin

99746

14.1994

0.3388

Bitcoin

271217

609,482,679.89

3,635,705.80

Digitalcoin

558493

2.0761

0.1313

Devcoin

115068

213,289,495.25

1,145,009.74

Freicoin

45381

222,837.03

1,927.45

Feathercoin

119314

139.3644

2.7019

I0coin- DORMANT

964360

4,382,937.16

190,860.24

Ixcoin

174022

168,573,279.37

1,206,694.54

Litecoin

465823

1,486.12

52.7472

Namecoin

147504

456,070,389.19

2,584,537.55

Peercoin

81889

9,726,255.71

95,725.32

Terracoin

216946

114,552.10

2,630.82

Worldcoin

812681

10.3822

1.4399

Primecoin

270885

0

0

A chart of active open source ecoins as of Nov 23 2013

 

Ecoin

An Ecoin is an electronic currency. It is also referred to as E-currency or crypto currency. It is pretty much like cash for the Internet. Ecoins come in two types, closed network ecoins and open network ecoins.

Examples of closed network ecoin networks are the types of ecoins used for virtual goods for games or on social networks. In game currency like Facebook credits and Gold for World of Warcraft are examples of closed network ecoins. The other major type of ecurrency is open network systems. Bitcoins and litecoins are two types of peer to peer, open network crypto currencies. Bitcoin is the grandfather of these types of ecoins. Litecoin is the up and comer. Ecoin Club is mainly about open source ecoin currencies.

bitcoinblockchainexample

  • Payment freedom – It is possible to send and receive any amount of money instantly anywhere in the world at any time. No bank holidays. No borders. No imposed limits. Ecoins allow users to be in full control of their money.  The payment system is the the peer to peer network so if the network is running (and operating peer to peer networks are always running), the payment will be promptly processed.  Once you send an ecoin, the peer to peer network needs to confirm the validity of the payment.  This can take some time.  You can usually pay a premium processing fee to receive priority processing, which results in faster confirmation of transactions by the network
  • Very low fees – Ecoin payments are currently processed with either no fees or extremely small fees.  Additionally, merchant processors exist to assist merchants in processing transactions, converting ecoin to fiat currency and depositing funds directly into merchants’ bank accounts daily. As these services are based on ecoin, they can be offered for much lower fees than private payment processing networks like with PayPal or credit card networks.
  • Fewer risks for merchants and privacy for the customer – Ecoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information. This protects merchants from losses caused by fraud or fraudulent chargebacks, and there is no need for PCI compliance. Merchants can easily expand to new markets where either credit cards are not available or fraud rates are unacceptably high. The net results are lower fees, larger markets, and fewer administrative costs. Also the transaction does not inherently include the customer’s name, location or other clearly idenifying information.  While the transaction is generally traceable, it is significantly more anonymous than traditional online payment options like credit cards.
  • Security and control – Ecoin users are in full control of their transactions; it is impossible for merchants to force unwanted or unnoticed charges as can happen with other payment methods. Ecoin payments can be made without personal information tied to the transaction. This offers strong protection against identity theft. Ecoin users can also protect their money with backup and encryption.
  • Transparent and neutral – All information concerning the ecoin money supply itself is readily available on the block chain for anybody to verify and use in real-time. No individual or organization can control or manipulate the ecoin protocol because it is cryptographically secure. This allows the core of ecoin to be trusted for being completely neutral, transparent and predictable.

bitcoinblockchainexample

Ecoin payments are easier to make than debit or credit card purchases, and can be received without a merchant account. Payments are made from a wallet application, either on your computer or smartphone, by entering the recipient’s address, the payment amount, and pressing send. To make it easier to enter a recipient’s address, many wallets can obtain the address by scanning a QR code or touching two phones together with NFC technology.

bitcoin open network

You can acquire ecoins through a variety of methods, some of the most common are:

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As payment for goods or services.

If you are selling something you can accept ecoins as payment for your goods or services.  As a matter of fact back sometime in 2010 when bitcoins were worth well just about nothing in the real world and it was just about impossible to buy anything legal with them someone famously offers 10,000 bitcoins for a pizza.  Today that pizza would be worth somewhere around $8 million.  In that same spirit www.pizzaforcoins.com will convert coins to pizza for you.  You can  visit http://pizzaforcoins.com/location to make sure that your local pizza place of choice is open and delivers to your address.  Then pick your order. At checkout, you are given the Bitcoin Address to send payment.  Once they  verify the bitcoin transfer they place your order for you. Depending on the bitcoin wallet you are using and network speed, this could take a few minutes.  They say that total time from placing order to receiving food is anywhere from 35-80 Minutes.

Purchase ecoins in an exchange.

There are many exchanges available, the hard part is setting up an account and getting currency into the account.  Most of these services are outside the U.S. and require several steps to fund.

Exchange ecoins with another user.

Finding a friend or connection with ecoins that they are willing to trade with you is probably the easiest method to quickly acquire ecoins for money or barter.  Once you get started, you can become the friend.

Earn ecoins by mining or signing a mining contract.

Mining for ecoins requires you to let your computer run calculations.  if you are technically inclined you can do it on your own.  Increasing companies are offering mining contractors where you can in effect rent the company’s mining equipment and use their equipment to mine.  Typically mining contracts are for a set number of hashes per second and for a set period of time.

From a user perspective, an ecoin network is just a mobile app, computer program or online account that provides a personal ecoin wallet and allows a user to send and receive ecoins with the wallet.

Behind the scenes, the ecoin network is sharing a public ledger called the “block chain”. This ledger contains every transaction ever processed, allowing your computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending ecoins from their own ecoin addresses. In addition, anyone can process transactions using the computing power of specialized hardware and earn a reward in ecoin for this service. This is often called “mining”.

Nobody owns open ecoin network much like no one owns the technology behind email. Being open means that they are controlled by all users around the world. Similar to other open source projects like Linux, developers are always working on adding services and improving the core software, but change only happens when users adopt improvements – not when a central group decides to release a new version.  In order to stay compatible with each other, all users need to use software complying with the same rules.  Open ecoins work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.

Every ecoin or fraction of an ecoin starts life the same way – as a hidden number that must be “found” by a computer that is mining (doing calculations) to find the ecoins.  Once an ecoin is found it is placed in a digital “wallet”.   It stays in the digital wallet.  If the owner wants to sell, give or trade the ecoin (or fraction of the ecoin), they will send the number of ecoins to the recipient’s ecoin wallet address (likely a long string of numbers and digits).

There are many reasons cited as benefits for buying and selling with ecoins rather than currency or credit.  Some of the most popular are:

(1)  The buyer can remain anonymous to the seller.  In the “real” world you can walk into a store, buy something with cash and remain anonymous.  This is not really an option online since almost all transactions you to create an account and use a credit card or bank account.  Ecoins and other crypto currencies allow the buyer to pay for goods and services online without revealing his or her identity to the seller.

(2) Transaction fees are typically less than other digital or credit options.  Credit card and debit transactions fees can range from 2% to 10% of the actual purchase.  Ecoins transaction fees are typically less than 1%.  Many are as low as .02%.  Basically ecoins cut out the banks in the middle and the transaction fees that come with them.

(3) It is extremely (if not impossible) to counterfeit ecoins because validity requires over 50% of all the computers on the peer to peer network to agree that the ecoin is real.  That is like waking into your local store, paying with a $100 bill and having every person in the U.S. look at the bill and only if a majority agree will it be considered a “real” $100 dollar.

 

An Ecoin is an electronic currency.  It is also referred to as E-currency or crypto currency.  It is pretty much like cash for the Internet. Ecoins come in two types, closed network ecoins and open network ecoins.  Examples of closed network ecoin networks are the types of ecoins used for virtual goods for games or on social networks.  In game currency like Facebook credits and Gold for World of Warcraft are examples of closed network ecoins.  The other major type of ecurrency is open network systems.  Bitcoins and litecoins are two types of peer to peer, open network crypto currencies.  Bitcoin is the grandfather of these types of ecoins.  Litecoin is the up and comer.

Open ecoin networks are called peer to peer because all the computers that are mining for crypto currency are in a peer to peer network which allows them to easily talk to one another.  This tool is used to validate transactions.  It is called crypto currency (cc) because of how it is acquired.

Crypto currency in an open network is originally acquired by having very powerful computers solve match problems.  Crypto currency can be compared to minerals like gold, copper silver etc.  The way you mine gold is my digging in the ground, looking for something shiny, then testing to make sure that it is gold.  To mine crypto currency your shovel is a computer that can add/subtract/multiple and divide and your testing kit is an internet connection so that your computer can talk to all the other computers that are also mining in the peer to peer network.    Instead of digging in the dirt to find something that looks like a ecoin, your computer tries to solve a pretty difficult math problem that has many correct but not an infinite number of correct answers.  Since there is a finite number of correct answers, every ecoin that is found means there is one less ecoin to find.  Over time this creates a decrease in supply and also makes it harder to find the remaining ecoins.   If demand for an ecoin increases overtime, the value of the ecoins may increase because supply of new ecoins will decrease by design.

Once your computer thinks that it has found a correct answer, it will ask all the other computers that are also mining in the peer to peer network to confirm that it has found a correct answer to the math problem.  When 51% of the mining computers agree that an answer is correct, the mining computer is awarded an ecoin by the network.  Once validated, every individual transaction is permanently recorded in a public ledger known as the blockchain.

Here is an example.  Let’s say that the correct answer to match question to be awarded a ecoin is “What is a whole number between 1-99 that ends in a zero.”  The correct answers would be 10,20,30,40,50,60,70,80,90.  If our computer started mining, in this case counting from 1-99, when it hit 10 it would realize that it found a correct answer.  It would then ask all the other computers that are mining in the peer to peer network if 10 is a correct answer.  Once a majority of those computers agree that 10 is a correct answer, your computer would get a ecoin and no other computer could ever be awarded a ecoin for finding 10.

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