“Decentralized money: cryptocurrencies, currency fiduat, proof of work and a deep algorand (algo)”

When the world becomes digital, the concept of money develops to keep up with technological progress. Two dominant forms of attracted currency are Fiat cryptocurrencies and currencies. But what is the difference between them? In this article, we are immersed in the world of cryptocurrency, focusing on its basic features: justification of work, decentralized networks and a system based on blockchain.

cryptocurrencies

Cryptocurrencies are necessary for digital or virtual currencies that use cryptography for safe financial transactions. They are generally decentralized, that is, there is no central authority to control them. Bitcoin (BTC) is the most famous cryptocurrency. Bitcoin, introduced in 2009 with the help of the nickname Satoshi Nakamoto, revolutionized thinking about money.

The main goal of Bitcoin is to create a decentralized digital currency that works regardless of traditional Fiat currencies. When extracting new Bitcoins, network nodes solve complex mathematical puzzles that require significant computing efficiency. This proof of work flow provides network transactions and check.

Fiat currencies

On the other hand, governments release and regulate Fiduat currencies. Usually based on supply and demand, the value depends on economic factors such as inflation rates and interest rates. FIAT currencies are not decentralized and are controlled by central banks.

FIAT currencies have been used for centuries, and their widespread acceptance is a certification of stability and reliability. At the same time, they must face serious challenges, including counterfeiting, inflation and variability.

Work certificate (POW)

One of the most important differences in cryptocurrencies and fiduat currencies is to justify the flow of work. Work certification is a consensual mechanism that requires miners to solve complex mathematical puzzles to confirm the blockchain network transactions. This process provides network and control transactions, enabling nodes to trust data integrity.

POW has many benefits:

• Safety : POW imitates the manipulation of the network or group.

• Scalability : Labor flow certificate allows you to process many transactions per second.

• Energy efficiency : Solving complex mathematical puzzles requires considerable computing force, and makes it relatively energy -saving.

Algorand (algo)

In recent years, Algorand has evolved as a leading cryptocurrency platform that combines the benefits of blockchain and decentralized financing (DEFI) with work certification (POW). Founded by Microstrategy Ted Lipton in 2017, aimed at ensuring quick, safe and scalable transactions.

The most important features of algoran:

1.

• Stake certificate (POS) : Algorand consensus mechanism is based on POS, which reduces energy consumption and environmental impact.

• ** SCALE CLAIM: Optimized algoran architecture can handle high amounts of transactions.

• Safety : The decentralized algorandu network ensures transaction integrity.

to compare cryptocurrencies

Here is a comparison of popular cryptocurrencies:

|. |. Bitcoin (BTC) Ethereum (ETH) Cardano (ADA)

|. — — — —-

|. Work certificate yes yes

|. Low-medium-high scalability high

|. Energy efficiency high medium medium-medium-sized

|. High high safety high

To sum up, the cryptocurrencies and currencies FIAT represent two separate approaches to operating values.