Finance of Blockchain, Coins, and ICOs

A coin is a unit of a cryptocurrency and a medium of exchange. Coins are distributed among the network according to its own set of rules. For example, in Bitcoin network, a node is rewarded coins when it calculated the hash value that is used to validate the new block of the blockchain. This system is called Proof-of-Work. Bitcoin, Litecoin, Dogecoin, Ethereum, and Ripple are all coins. Each cryptocurrency has their own blockchain.

A token is a unit of value that can describe a cryptocurrency or a digital asset that is built on another platform. Some platforms create their own token using an existing cryptocurrency platform. Many applications use Ethereum Platform to create their own token and rely on the Ethereum Blockchain.

Why trade coins?

Because, similar to physical or digital assets, it has value. They can be bought, sold, or traded. Although the market prices of popular coins like Bitcoin and Ethereum have ups and downs, price is determined by basic supply and demand. 

What is an ICO?

ICO means Initial Coin Offering. At the beginning of a new cryptocurrency project, organizations need to raise money to finance the project. So, limited amount of coins are reserved for initial coin sale that will help to crowdfund the project and allow further development.

What is a DApp?

In this post, we will talk about DApps. You can’t talk about cryptocurrencies and blockchain without mentioning it. DApp is short form of decentralized application. A centralized application is hosted by using one or more servers. The application owner is the centralized authority. Decentralized applications do not run on a single server. Instead, the application directly runs on every device it is used. Users of a DApp directly communicate between each other.

So, what are the use cases of serverless applications? First of all, it allows the users to use the application without censorship or approval of a central authority. The application can have its own rules regarding the content, but there is no centralized approval. 

Second, application can combine money and information transaction without using a third party. As the money transaction between both parties is completed, information can be exchanged directly. Most of the services relying on a third party can be transformed into a DApp.

What is Cryptocurrency?

To talk about cryptocurrencies, we first had to define what currency is. Currency is something people used to exchange each other for goods and services. Centralized currencies like USD, EUR, or Gold are backed by central banks of the given country. Unlike these, cryptocurrencies don’t have any centralized backer similar to a bank. Since they are used in decentralized applications, cryptocurrencies follow the rules of the network they are being used.

Most popular cryptocurrencies today are rewarded from the blockchain network for the amount of work put on the network to verify transactions. For example, when a miner node verifies a block in the blockchain, it receives a reward. This reward is called a Bitcoin in the case of the Bitcoin network. Similarly, it is called Ethereum for ETH network.

Cryptocurrencies are stored in the encrypted wallets of each user. When a user sends a certain amount of cryptocurrency to an another user, that amount of cryptocurrency minus the network transaction fee is transferred to the wallet.

The statement that cryptocurrencies will replace the money is the same as switching to another currency or asset in the given system as long as it is accepted for both parties. You can think of using it when buying coffee if the coffeeshop accepts it. Since the cryptocurrency is a digital asset, the price of the coffee is transferred from customer wallet to coffeeshop’s wallet.

What is Blockchain?

As we are getting ready to release our cryptocurrency mining simulation game Blockchain Tycoon, we’ve decided to talk about the cryptocurrency and mining process. This week we’ll talk about the blockchain. As you might know, it is a very hot topic for the last couple of years. Although the hype around a single currency and their token price varies greatly, underlying technology, the blockchain, will be around for a while.

So, what is a blockchain?. A blockchain is a digital ledger in which transactions made in cryptocurrency and recorded chronologically and publicly. Basically, it is a digital notebook of transactions that is approved by the network and available to everyone.

A blockchain consists of blocks. Each block represents a transaction and a transaction is considered valid after it is approved by the network and added to the chain of blocks before that.

For example; when you look at the Bitcoin, the blockchain consists of the transactions between accounts. Instead of hiding the account information, blockchain technology makes the wallets publicly visible. The transactions are encrypted and owners of the wallets are not known by the other users. Only the wallet address is enough for someone to send you money. This makes the process anonymous as only the wallet addresses is known and the transaction happens between two users without a middle man.

There are use cases of Blockchain beyond financial applications. We are leaving them as a discussion topic for the following weeks.

Stay tuned.

Introducing the Blockchain Tycoon

We are proud to announce our upcoming cryptocurrency mining simulation game Blockchain Tycoon. We are working on to make it as realistic as possible. For example, by use of real life values and algorithms, you can earn same amount of coins as in real life. Also, the electricity and power calculations varies by warehouse location. We are also working on a simulated world economy for coin prices and world mining ecosystem which effects overall coin earnings.

The game is designed to be played by absolute beginners and experts on the topics of blockchain and cryptocurrencies and aim to give you a better understanding of the cryptocurrency mining.

Here is a detailed shot of the one of the warehouses:

Wheels are in motion, things are happening

Hi all,

We are currently working on a resource management / business simulation game. It is in the first prototype and game design stage. We will be giving updates on the environment and gameplay soon.

Game is planned to be released on early-2018 for PC / macOS / Linux.

Stay tuned