Exploring Cryptocurrency and the Challenges of Digital Token Trading Systems
Cryptocurrency is a form of digital currency that is based on blockchain technology. It is decentralized, meaning that it is not governed by any other body, and it is secured by advanced encryption. Cryptocurrency offers several advantages to users, including low transaction fees, anonymity, and a secure payment system.[0] However, it is important to note that the market is volatile and prices can fluctuate wildly.[1]
Mining is a process used to create new cryptocurrency and to verify transactions on the blockchain.[2] It requires a great amount of computing power and electricity.[3] Different types of mining exist, such as GPU or CPU mining.[3]
In order to purchase and store cryptocurrencies, users need a crypto wallet. A crypto wallet is a secure digital wallet that is used to store, send, and receive cryptocurrencies. It is important to have strong security measures in place, such as two-factor authentication, encrypted data storage, and secure SSL connections.[4]
Staking is a process of contributing to the security and operability of a blockchain network by pledging tokens to a ‘validator’ who processes transactions.[5] Stakeholders are paid with the newly created cryptocurrency to help secure the network.[1]
Ethereum is not limited to being simply a cryptocurrency; it has more to[6] Smart contracts, which establish the terms of an agreement between a purchaser and a vendor, are employed to execute them.[6] Smart contracts remove the necessity for third parties, such as banks or governments, to serve as intermediaries to implement agreements and execute transactions between people who have no prior relationship.[6]
Cryptocurrency has the potential to revolutionize peer-to-peer and remittance trades; however, users must overcome certain challenges connected to security, privacy, and control.[0] This includes interest rates, cost concerns, transparency issues, hacking issues, and other hazards.[7] In order to rank the optimal digital token trading system, a decision-making process based on fuzzy theory and the best-worst method (BWM) is used to assess decision behaviors regarding preference for digital token trading systems in investors.[7] Results show that the most effective digital token trading system is a decentralized platform, and the key elements are gas fees, interest rates, and the savings protocol under fuzzy uncertain conditions.[7]
The news of renewed regulatory scrutiny in the cryptocurrency space follows the fall of stablecoin TerraUSD (UST) and its companion token LUNA in May 2022.[8]
0. “Cryptocurrency Market is likely to reach $12.10 billion by” www.globenewswire.com, 16 Feb. 2023, https://www.globenewswire.com/en/news-release/2023/02/07/2603472/0/en/Cryptocurrency-Market-is-likely-to-reach-12-10-billion-by-2030-Globally-at-a-CAGR-of-11-9.html
1. “This Is How To Make Money With Cryptocurrency In 2023” theislandnow.com, 16 Feb. 2023, https://theislandnow.com/how-to-make-money-with-cryptocurrency/
2. “Can cryptocurrency become more environmentally friendly? | Fierce …” www.fierceelectronics.com, 16 Feb. 2023, https://www.fierceelectronics.com/electronics/can-cryptocurrency-become-more-environmentally-friendly
3. “What You Need to Mine Cryptocurrency | ECOS BLOG” ecos.am, 16 Feb. 2023, https://ecos.am/blog/what-you-need-to-mine-cryptocurrency/
4. “A Comprehensive Guide to Cryptocurrency Exchange Development …” www.antiersolutions.com, 16 Feb. 2023, https://www.antiersolutions.com/the-essential-components-of-a-cryptocurrency-exchange-2/
5. “Coinbase Global Inc chief warns of potential cryptocurrency staking …” www.proactiveinvestors.com.au, 16 Feb. 2023, https://www.proactiveinvestors.com.au/companies/news/1005709/coinbase-global-inc-chief-warns-of-potential-cryptocurrency-staking-ban-1005709.html
6. “Exploring Cryptocurrency Technology: 8 Facts to Learn About …” www.tekedia.com, 16 Feb. 2023, https://www.tekedia.com/exploring-cryptocurrency-technology-8-facts-to-learn-about/
7. “Applying the Fuzzy BWM to Determine the Cryptocurrency Trading …” www.mdpi.com, 16 Feb. 2023, https://www.mdpi.com/2075-1680/12/2/209
8. “Binance’s stablecoin partner Paxos ordered to cease minting BUSD …” www.proactiveinvestors.com, 16 Feb. 2023, https://www.proactiveinvestors.com/companies/news/1005955/binance-s-stablecoin-partner-paxos-ordered-to-cease-minting-busd-cryptocurrency-1005955.html
