A digital cryptocurrency (or crypto currency) is a digital token (medium) of exchange that is meant to be used for various types of online transactions. Cryptography is used to validate and secure the transactions as well as to regulate the numbers of the particular cryptocurrency that is available for use at any point in time.
A complex computer encrypted code called a private signature key (psk) is combined with an equally complex computer encrypted code called the public key (pk) to control the 'proper use' of a cryptocurrency.
The private key identifies ownership of the cryptocurrency. Cryptocurrencies can be stored in your own computer, a portable storage devise or even written down on paper, however, if you wish to use them in online or real world transactions, you'll have to move them online to an electronic storage facility generally referred to as a "wallet". These "wallets" are usually provided for profit by companies who are not necessarily the same companies who created the particular cryptocurrency.
Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies. The most well-known cryptocurrency to date is Bitcoin.
Bitcoin was created in 2009 by one or more persons going by the false name of Satoshi Nakamoto. Bitcoin is considered by many to be the first decentralized cryptocurrency. Since then, numerous cryptocurrencies have been created - each claiming to be better than the other. Currently over a thousand cryptocurrency specifications exist.
Cryptocurrencies are frequently called altcoins (alternative coins) and can exist in both centralized and decentralized forms. The centralized form is generally more difficult to support as it generally requires the creator to act in the capacity of a buyer of last resort. Bitcoin and most of the cryptocurrencies available now are in decentralized form and are supposed to be self-regulated through the computer code used to create them.
Cryptocurrencies were originally created for the more convenient settlement of online, electronic transactions on a cashless basis. However, bitcoin and in particular some newer cryptocurrencies have become popular investments as well. People who purchased some of these newly launched cryptocurrencies when they were first released, have seen their investments appreciate by thousands of percentage points.
However, for any cryptocurrency to really be able to replace cash, it has to have certain key features. Our research has revealed the following features a must in order for any Cryptocurrency to be widely acceptable:-
The Cryptocurrency must have at least one clearly identifiable entity that has a contractual obligation to buy the Cryptocurrency in any major international currencies at its quoted rate.
The Cryptocurrency must have at least one clearly identifiable entity that is willing and able to provide safe and secure storage and transfer of the Cryptocurrency on reasonable terms.
The Cryptocurrency must be able to provide the best available security to authenticate the original from fraudulent duplicates.
The Cryptocurrency should be able to be used at a reasonable cost.
Transactions in the Cryptocurrency should be fully traceable such that accurate records may be provided to law enforcement agencies in the event such is needed to investigate and prosecute illegal transactions.
Unfortunately, none of the Cryptocurrencies we researched have even one of the above requirements.
We therefore decided to support the creation of a Transaction Settlement Software (TSS) with Multicurrency features that would meet ALL of the above requirements of unlimited convertibility, safe, secure and cost effective storage, high levels of security, reasonable cost to use and full traceability of transactions.
The TSS that meets all the above features was created by Croinx Systems and the Transactions Settlement Software has been named CROiNX with the Quote Symbol of CX.