Tag Archives: digital currency

Ripple – a decentralized exchange, a payment system, and a currency

Hello dear reader.

It has been quite a long time since I blogged about anything related to the e-currency industry, but I must share this article I ran across on the DGC (digital gold currency) Magazine website. The article talks about the revamped version of the Ripple payment system. As far as I understand the concept is that now Ripple has become more like Bitcoin, in the sense that it’s now a fully P2P digital currency. Click here to see the official explanation of how the Ripple system works. If you scroll down that page you’ll see mention of a “distributed ledger” and “P2P Network” as well as “Consensus.” Well that sounds exactly like the way Bitcoin functions. Lest you quickly jump to the conclusion that this is another Bitcoin fork/clone hold on a second and make sure read this further detail page.

I’m quite excited about the recent innovations occurring in the digital currency arena. Digital currencies that empower regular people (instead of governments, central banks, and institutions) are likely set to massively increase in popularity – especially considering that so many people these days are fed up with how poor the performance of traditional institutions (read central banks, governments, etc) has been and continues to be when it comes to properly managing a currency for the benefit of its users. So if you can’t trust the government with your money (you probably shouldn’t) then the question is can you trust the masses and the P2P systems empowering them? Well, I guess that question remains to be answered. These P2P currencies are a still young and definitely fragile. Time will definitely flush out the good from the bad and eventually one system will win the support of the majority.

I hope I have given you something interesting to look into. Please feel free to share your opinions and comments regarding Ripple or the whole P2P e-currency idea.

Alan out.

Bitcoin: An Innovative Alternative Digital Currency

bitcoin logo

Hi everyone.

If you’ve been paying attention to my previous posts you probably already know that I’m into this new e-currency called Bitcoin, and that I made several posts about it (here, here , here and here). There is quite a lot of useful reading material about bitcoin out there, and I just came across some new reading material that I’d like to share with you. It is a paper written by a Yale Law School student. While this paper is still a preliminary draft I would still recommend it to new bitcoin users.

There is one thing that I’d like to mention. In the paper the author refers to bitcoin as a fiat digital currency. This is not true in the strictest sense of the word “fiat.” Bitcoin is not fiat because fiat money only has value due to government regulation or law. No government controls bitcoin so its value is not based on the fact that some government decreed that bitcoins are “legal tender.” Bitcoins are instead free-market money because PEOPLE choose to value them and to make use of them as a medium of exchange.

Anyways, technical details aside (I did say that the author’s paper is preliminary didn’t I?) here is the link where you can download a copy of this paper (PDF format):

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1817857

Enjoy!

Cheers,

Alan