Currency value and application
1 。What is virtual currency?
The origin and type of virtual currency
It is generally believed that virtual currency originated from the first paper related to electronic currency proposed by Satoshi Nakamoto in 2008. Based on this paper, the first virtual currency created by volunteers on the Internet is Bitcoin, which began trading in 2009 and continues to this day. From 2009 to date, it has not been able to ascertain the true identity of "Satoshi Nakamoto".
By March 2019, there were more than 2,000 types of virtual currency in the world. The virtual currency other than Bitcoin was called "altcoin". The reason for developing the coin was to make up for the shortcomings of Bitcoin. For example, "Litecoin" is a competitive coin created by Bitcoin's slow transfer rate to increase the speed of transfer and settlement. Many people think that virtual currency is commonly known as electronic money. Virtual currency does have the characteristics of physical electronic money. It is also non-cash; however, the biggest difference between virtual currency and electronic money is whether it is trading on the blockchain. . In simple terms, virtual currency is “electronic currency that trades on the blockchain.” Virtual currency and blockchain are inseparable; and this “blockchain” is an unprecedented innovation.
2 。 understand the essentials of the blockchain
Blockchain is a book that is managed by everyone.
A blockchain is a decentralized distributed ledger database. A database that is shared, replicated, and synchronized between network members. The benefit of this distributed ledger is that buyers and sellers can trade directly without any intermediary. Everyone has a backup, even if you lose it, it will not be affected.
If the value of virtual currency assets is not established by "trust," its greatest advantage is that it has a mechanism that can be trusted.
On the other hand, fiat money is like the role of the “state” in the blockchain, guaranteeing the value of its currency and allowing it to circulate, enabling people to execute credible transactions.
The way to guarantee the value of money in the future is to maintain the "centralization (centralized)" of the current legal currency or the "decentralization (non-centralized)" managed by all participants like the blockchain. Which one will become the mainstream in the future? This may affect the popularity of virtual currency in the future.
The so-called "consensus mechanism" is to complete the verification and confirmation of the transaction in a short period of time through the voting of special nodes; for a transaction, if several nodes with irrelevant interests can reach a consensus, we can think of the whole network. A consensus can also be reached on this.
Mining is the process of confirming transactions occurring in the Bitcoin system over a period of time and recording the formation of new blocks on the blockchain. The miners are called miners. Mining is the process of bookkeeping, the miner is the bookkeeper, and the blockchain is the book. 
3。Use of virtual currency
Virtual currency is based on the innovative technology of blockchain and is called “money of the future” because it hides the possibility of fundamentally changing the future society. Let's share the areas in which virtual currency can be applied.
Finance: The blockchain developed by RippleCoin can quickly complete international transfers at low cost.
Checkout: A storefront that can be paid in virtual currency such as Bitcoin, and can be expected to be used as an "international currency" in the future.
Entertainment: Use the competition coin (Ada) to play online at the casino; in the casino, you can use ADA to play games.
Network: The web browser "Brave" uses blockchain technology to eliminate all ads and is expected to become "future Google."
Real estate: Using the characteristics that the blockchain cannot be tampered with, it will simplify the registration and management; it has gradually begun to have the service of using Ethereum, which is a field with high affinity with virtual currency.
Administration: Like real estate, it is expected that virtual goods can also be used in administration; using blockchain technology to manage personal information is expected to increase efficiency and security.