Because the encrypted economy is something new to the world, as encrypted currencies, a lot confused between the currencies and currencies encrypted, so in this article we will address the difference between the currencies and currencies encrypted and what are the basic differences between the two currencies, encrypted or Cryptocurrencies and Digital Currencies ?.

The difference between currencies and encrypted currencies

• What are digital currencies

Digital currency is the money used on the Internet. It is digital money in the form of numbers. It has no material equivalent in the real world. But for digital currencies all the characteristics of traditional money. Just as local money, you can obtain, transfer or exchange them for other currencies. You can use it to pay for goods and services, such as filling phone and Internet accounts, buying online, paying for bills ... Digital currencies have no geographic or political boundaries. Transactions may be sent from anywhere to any point in the world. Digital accounts and portfolios can be considered bank deposits.

Encrypted currencies or Cryptocurrency

Currency Encrypted or Cryptocurrencies are a variety of digital currencies but are encrypted with their own system, encrypted currencies or Cryptocurrency is an asset used as a means of exchange. It is considered reliable because it is based on a complex encrypted system based on cryptography. One of the basic goals of cryptography is to make communication safe and protected. It creates and analyzes algorithms and protocols that allow encryption of data so that no information is changed how it was, or that it should be read by third parties. Encryption is a combination of a large number of different sciences, so mathematics is defined as the basic process of encryption. Mathematics is responsible for the reliability of encrypted algorithms and protocols.

Encrypted currencies or Cryptocurrencies have a system and a protocol called the Balukshin or the book of digital calculations decentralized. This means that no third authority controls all transactions, transactions, transfers, and transmissions in the network.

What are the basic differences between the two, encrypted currencies or Cryptocurrencies and digital currencies?

Although Cryptocurrencies are a type of digital currency, there are some basic differences between the two

• Structure: Digital currencies are centralized, there are a group of people and computers that regulate the status of transactions in the network. Currencies and Cryptocurrencies are decentralized, based on distributed systems that manage transactions.

• Unidentified: Digital currencies require user identification. He will need to upload his personal photo, some documents issued by public authorities, proof of address .. and many other documents and procedures that detect the identity of the person. Buying, investing or any other encrypted currency operation does not require or require any of the digital currency needs. However, the encrypted currencies or Cryptocurrencies are not 100% anonymous. Although the addresses of the portfolios do not contain any confidential information such as name, address, etc., encrypted currency conversions are handled on the decentralized path, thus tracking some of the addresses of encrypted currency portfolios.

• Transparency: Digital currencies are not transparent. You can not track the financial transactions of the governor and we can not see the remittances, that information is kept confidential only to providers of currency currency services. Currencies are encrypted or transparent Cryptocurrency. Where anyone can see the transactions of any user, where all revenue sources are placed in a generic series.

• Transaction processing and remittance: Digital currencies have a central authority that handles all transactions and remittance issues. They may cancel or freeze transactions at the request of the participant or authorities or suspected fraud or money laundering. Transactions and transfers in encrypted currencies or Cryptocurrencies are organized through a distributed system of computers called Peers or Nodes in a global network. This network has standardized and specially programmed programming (for data processing, remittance, full record of encrypted currency since its inception) on all computers, and any change in that programming must be approved by all Peers or Nodes, and it is highly unlikely that users will agree to Changes in that blockin network.

• Legal aspects: Most countries have some legal framework for digital currencies, such as EU Directive 2009/110 / EC and Article 4A of the USC. Encrypted currencies can not be said about the same thing at the moment. In most countries, you do not find any status codes for encrypted currencies, and so far the establishment of the legal framework for encrypted currencies is still in progress.

Between encrypted currencies and digital currencies, the first teams are decoded decentralized without any central authority and are not relying on intermediaries to manage, and the second currencies central and digitally traded on the Internet, and its central system is subject to intermediaries.