What are virtual and cryptocurrencies, how do they differ from e-money and what are altcoins?


The purpose of this website is to support Cardano/ADA (Cardano Ada), but the history of virtual currency is still young and it has not yet penetrated into the daily life of the public. There are also a lot of technical and specialist terms, so even if you want to buy or learn about virtual currencies, you may be confused at the first step. That's why we've put together this website to help you understand not only Cardano Ada, but also what virtual currencies and cryptocurrencies are in the first place. We hope to provide you with the information you need to learn more about Cardano.

The name "virtual currency

The first known virtual currency, Bitcoin, emerged in 2009. Since then, it has been mainly referred to as " virtual currency " in Japan, but in the West it is known as "Cypto Currency", or in literal translation, " cryptocurrency ".

The term "cryptography" is used to describe the currency's ability to ensure the security of transactions.Cryptography The term "cryptocurrency" is used in Japan because the term "crypto" does not have the same ring to it. In Japan, however, the term "virtual currency" is used because the sound of "cryptography" is not very popular.

Change of name to 'crypto-assets'

At the end of 2018, the FSA published a research report on the virtual currency exchange business, which advocated changing the name of "virtual currency" to " crypto-assets ", and the Cabinet decided on March 15, 2019, so we can say that the official name in Japan is "crypto-assets". However, in general, the terms "virtual currency" and "cryptocurrency" are more widely used, so we will use the more familiar terms on this website as the occasion demands.

The difference between virtual currency and electronic money

The main difference between virtual currency and electronic money is whether it is based on legal tender (e.g. yen, US dollars, euros). Electronic money is only a substitute for legal tender. Virtual currencies, on the other hand, do not have their value guaranteed by any particular state. Virtual currencies are not dependent on a country, as users approve each other's transactions.

There are three main types of e-money. There are three main types of e-money: transport e-money, which was created by the railways as a form of ticketing; distribution e-money, which was created by the major distribution companies to meet shopping needs; and credit card e-money, which is linked to a credit or debit card. The money can be recharged either by depositing cash into an e-money terminal or by automatic withdrawal from a registered bank account. In both cases, legal tender is used for the actual payment.

A virtual currency is a decentralised currency that circulates independently of the state. Legal tender, such as the Japanese yen or the US dollar, is issued by the central bank of a country and its value depends on that country. Therefore, the currency of a nation with a stable and reliable economy will appreciate in the international market, while the currency of a nation with an unstable economy may be worth less. In addition, you need a bank to transfer money, but if the bank goes bankrupt, you will not be able to transfer money. If you can't open a bank account, you can't even send money.
Virtual currencies, on the other hand, are not controlled by any state or organisation, and their value is determined by the balance between supply and demand. Although there is a risk of price fluctuations due to circulation, virtual currencies can be used to transfer money directly between individuals without the need for a bank or other organisation. Even if the transaction is between individuals, virtual currency transactions are encrypted in blocks using a system called a "blockchain" to ensure the reliability of the virtual currency by making it difficult to alter the records. We will explain blockchain in another article.

What is an "altcoin"?

We've already talked about "virtual currencies", "cryptocurrencies" and "crypto-assets".Altcoins We have also often heard the term

AltcoinAltcoins The term "altcoin" is a general term for the cryptographic assets (virtual currencies) that came after bitcoin, and is short for "alternative coin". Altcoins (altcoin) Most altcoins are based on the same basic principle. The basic structure of most altcoins is based on Bitcoin, and there is a growing market for distinctive altcoins that improve on the shortcomings and functionality of Bitcoin. On the other hand, Bitcoin, the first virtual currency, is very well known and holds the number one position in terms of market capitalization by a wide margin over other altcoins.

It is estimated that more than 1,500 different coins have been created worldwide, with the most common altcoins being Ethereum, Ripple, Litecoin and Monacoin, which originated in Japan.

Among these, the most notable areCardano Cardano ADA (Cardano / ADA) Cardano Ada. Cardano Ada is also an altcoin, a virtual currency that is used on the Cardano platform. The Cardano project is based on the Bitcoin ( BTC Ethereum (E) TH We aim to create the strongest virtual currency platform by making up for the shortcomings of currently issued virtual currencies such as We aim to be the most powerful virtual currency and platform. Ethereum (ETH) Former CEO of Ethereum CEO and creator of Ethereum Charles Hoskinson, former CEO of Ethereum and developer of Ethereum, and other mathematician geniuses have designed Cardano based on academic papers, incorporating proven secure technology. Cardano has been developed by Charles Hoskinson, a mathematical genius, and others.

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