Tag Archives: Bitcoin

Would you like to see a Bitcoin transaction that had nothing to do with you?  Well you can, anyone can!  That may sound scary but this feature is one of the coolest and most transparent things about Ecoins.  While the buyer and seller’s identify remain anonymous in the network, the payment processing system is completely transparent.  All transactions are managed, reports and processed through the public Bitcoin network. The reporting aspect of the network is called the Block Chain  This is true for most open source peer to peer Ecoins as well.  At anytime you can enter a wallet address or other identifying number thread into the search bar and see all the information about that transaction.  This is particularity cool when you send a Ecoin.  You can match the Ecoin go through the network and start to get confirmations.

blockchain

Most Ecoin transactions require a certain number of confirmations before the recipient will consider the transaction valid.  The Bitcoin community has commented that 5 Bitcoin network confirmations have the same level of validity of waiting 6 months to validate a credit card transaction.  It will usually take less than 30 minutes to get the confirmations required to confirm the transaction.

blockchain2

Many recipients require 3 confirmations before accepting the validity of an Ecoin transfer. This is a recent transfer with only 2 confirmation so far.

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

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.

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”.

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.