Crypto for Sovereign Mindeds
All cryptocurrency is a digital currency, but not all digital currency is a cryptocurrency.
Digital currency refers to the electronic form of fiat money issued by governments, whereas cryptocurrency is a store of value secured by encryption
Digital Currencies are Centralized, online currencies that have no physical version of themself, like a dollar bill you can hold. They are not backed by physical assets or projects. They are just stored on a computer program. The value is determined by who ever made them typically Central Banks.
For example: Stable coins, USDC, USDT, and any coin that the countries decide to make as their countries coin are all digital currencies.
CryptoCurrencies are algorithm powered currencies backed by certain technologies, assets or projects, wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
Cryptocurrencies typically use Blockchain and a decentralized ledger, which means that no single individual or supervisory authority controls the actions in the network.
More so, not every crypto is decentralized, and even less are based on Privacy.
Decentralized Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
Privacy Coins are decentralized cryptocurrencies that protect your privacy when transacting.
- Digital currencies are centralized, meaning that transaction within the network is regulated in a centralized location, like a bank. Cryptocurrencies are mostly decentralized, and the regulations inside the network are governed by the majority of the community. There are also cryptocurrencies that are totally centralized and run by the founding organizations.
- Digital currencies are not transparent. With digital currencies, you cannot choose the address of the wallet and see all money transfers since the beginning of time. This information is kept strictly confidential and private. Most cryptocurrencies are transparent. Anyone and everyone is able to see any and all transactions made and received by any user, as all revenue streams are placed in a public chain – the blockchain. This does not apply when we talk about privacy coins, their whole meaning is to not share how much money has been sent where.
- Digital currencies have a central authority that can deal with any problems or issues. This central body can, for example, freeze or cancel transactions on the request of the participant or the authorities. Cryptocurrencies (in the case of decentralized ones) are regulated by their respective communities.
There are 2 movements in crypto:
1. CENTRALIZED- the push for more control, oppression, fraud, the opposite of liberation (De facto)
2. DECENTRALIZED & PRIVATE , Liberating, privacy based for autocratic assemblies. (de jure)
We aim to learn as much strategies to remain private and decentralized.