Security of Crypto Coins
Certain technology is like a double-edged sword. It allowed us to create gold and silver coins. Since gold and silver coins are not easily divisible and heavy to carry around all day, we created paper bank notes. Technology rescues and advances society forward again.
Consider the modern laser printers for instance. For most of us, laser printers represent a means to produce high quality documents for business meetings, or personal projects at home. For some bad actors, it represents a tool to commit fraud. To some extent, some high definition laser printers are frequently used by counterfeiters to produce false bank notes.
According to the US Federal Reserve, $61 million counterfeit bank notes were found and removed from circulation in 2005. In 2011, $216 million counterfeit bank notes were found and removed from circulation. That’s a 327.87% gain in just six years! Will it stop? Probably not because technology keeps getting better and bad actors keep improving their skill sets.
Don’t fret! There’s some good news…
With this modern technology, we also have an opportunity to dramatically reduce fraud globally by using immutable math. How? You may wondered.
To mitigate risk and reward those true believers (miners), a decentralized and distributed ledger was created. It’s called blockchain. Bitcoin was its first crypto coin and its popularity and usage have increased exponentially since 2009.
On a high-level, the blockchain mathematical formula facilitates all debits and credits on the decentralized and distributed public ledger. Basically, all transactions are automatically processed through three layers of security: blockchain confirmations, crypto coin miners, and unique hash transactions
These three automatic security layers ensure consistent, trust-less, and fraud-less transactions 24/7 on a decentralized ledger.