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Chapter 1: The Transaction Properties of Cryptocurrencies

In order for a cryptocurrency system to work effectively there has to be a number of properties in place.

These are:

Immutable

After a cryptocurrency transaction is confirmed then it cannot be changed. Nobody in the world can change a cryptocurrency transaction not even presidents or monarchs. It is an immutable record.

Basically if you send money to someone else that’s it. There is no turning back. So if you make a mistake or get scammed then you are stuck with the situation. You do not have the opportunity to reverse the transaction.

Pseudonymous

Cryptocurrency accounts and transactions have no connection to real world identities. You will receive a Bitcoin on an address which is a randomly seeming chain of about 30 characters. You can analyze the transaction flow but you can’t usually connect the transaction to a real person through the address.

Global Transactions at Speed

It doesn’t take long to propagate transactions and confirm them. Usually this all takes place in minutes. The network for cryptocurrency transactions is global so it doesn’t matter where the transaction originates and terminates.

High Security

The highest levels of transaction security are essential for a cryptocurrency network and to this end all funds are locked in a public key cryptography system. Only someone that has a private key can send cryptocurrency. This makes the system extremely secure.

No Permissions

A cryptocurrency system is a “permissionless” system. You do not require the permission of anyone or any authority to make a cryptocurrency transaction. There is no gatekeeper with a cryptocurrency system.