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for anyone to pay immediately and from
any spot worldwide. This type of currency is
based on a secure peer-to-peer technology
powered by users with no central authority or
intermediaries (such as banks). Transactions of
cryptocurrencies are free of charge and users
can anonymously process their transactions
without the need to declare their real names.
Those transactions are automatically sent
from the seller to the buyer using encryption
techniques in order to protect transactions from
instances of hack or fraud.
In order to ensure the proper functioning of
fund transfers, a ledger called “blockchain”
is maintained, under which all transactions
that took place on the network are recorded.
Through this ledger, users of the blockchain
network would be able to check their
balance online.
Theme Two: The different types of crypto/
virtual/ digital currencies
Several crypto digital currencies are available
worldwide, the most important of which, are:
1. Bitcoin:
it is one of the best-known
cryptocurrencies in the global economy and the
largest cryptocurrency in terms of market cap.
Other cryptocurrencies that had later emerged
are alternatives to Bitcoin, which are referred to
with the term “Altcoins”.
2. Litecoin:
this type of digital currency was
launched in 2011. It has been called the silver
to Bitcoin’s gold. Among cryptocurrencies,
Litecoin is known to be the fastest in transaction
speed, and it is even faster than Bitcoin in
confirming transactions.
3. Ethereum:
It is a secure platform that was
launched in 2013 for running smart contracts.
It allows for creating smart contracts following
the models of traditional ones. The Ethereum
platform shall also verify that all contract items
are fulfilled while ensuring full compliance with
the terms of the contract.
4. Quark:
it was introduced in 2013. Among
cryptocurrencies, Quark is the most encrypted,
employing nine separate rounds of encryption
to ensure maximum security and anonymity.
Due to the fact that Quark coins are mined by
regular CPU only, this type of cryptocurrency
provides the fairest possible models of
distribution.
5. Peercoin:
Unlike other altcoins, Peercoin
was the first cryptocurrency to focus on mining
more coins without the need for consuming high
energy. Peercoins have the advantage of being
more energy-efficient, sustainable, and greener
than the other cryptocurrencies.
6. Ripple:
It was found in 2013 to serve as a
digital currency and an electronic network for
financial transactions. This network accepts
both crypto and fiat currencies. While Bitcoin
intends to replace the traditional banking
systems, Ripple is targeted towards supporting
the existing traditional systems instead of
abolishing them. Ripple has no mining or
miners whatsoever; yet, it serves as a digital
network for payment settlement, currency
exchange, and remittance system.
Theme Three: Mechanisms for the trading
and pricing of digital currencies
The mechanism for trading with digital
currencies:
Most digital currencies are based on the
technology of “blockchain”, which serves
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