The evolution of Pi Network, Core DAO and other cryptocurrencies; How cryptos are designed to work

When the society was in it’s dark stage there was nothing like money. You’ll have to go to someone and say: “hey, I really like your horse I’ll trade you my dog for it” (that’s barter) but the issue with the system like that is that, even though you might be perfectly happy to give up your horse you might just not want a cat and that trade will never happen.

Stage 2

That’s where coin (fiat) came in because they were made of precious gold and siver and everyone just accepted them and believed they were worth something. (The British pounds) the reason they are called pounds is because it really used to be ponds of silver….and all of a sudden in a trade it didn’t matter if you don’t want my cat as long as I have coins we can still trade for your horse and even if you have no use at all for that silver at that moment, it’s a precious material and there’s a reassurance to use that coin to trade for something you might need later. Convenient right?

Stage 3

As banks were established and Government gained control, we realized that as long as there was trust in the system we can move away from heavily carrying blocks of silver to a more convenient system (paper money or Bank Notes) It’s almost the same thing with the coin but now the money doesn’t have value because it’s paper. It only has value because the government says it has value and with all those printed words on the money it’s just like a receipt or prove you have money. As Technoogy improved even more further, we found even more convenient way of storing and trading our stuffs .

Stage 4

More peope than ever began buying things online with credit cards and at this stage we don’t see our money anymore. It’s not about coins or notes or cats and banks it’s just “Entry of a Sheets”. They debit the money from your Bank Account and it’s credited to theirs and you get your goods.

Cryptocurrency sits with some people as the most comfortabe era ever . 

Stage 5

Cryptocurrency is 100% virtua. With crypto there’s no gold , no siver , no paper. It’s a transfer of “Digital Asset” instead of multiple bank keeping it in separate records. With crypto there is just one enormous spray sheet of every transaction made with that currency, it’s called a ledger.

The operation and appeal of Bitcoin and other cryptocurrencies are fundamentally dependent on blockchain technology. Blockchain is essentially a network of interconnected blocks or an electronic ledger, as its name suggests. A group of transactions are contained in each block, and they have all been independently confirmed by every user on the network.

It is nearly impossible to fabricate transaction histories since each node must first verify each newly created block before it can be confirmed.

The network of each computer or individual node that keeps a copy of the online ledger must agree on the ledger’s contents.

Leave a Reply

Your email address will not be published. Required fields are marked *