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Introduction To Bitcoin And Darkcoin - Online Digital Currencies

By Edited Aug 21, 2015 2 2

Darkcoin - An Anonymous Version Of Bitcoin

Bitcoins (BTC) are becoming more mainstream and widely accepted every day. Major global companies like Dell computers now accept Bitcoin. There are Bitcoin ATM machines popping up all over USA, Canada, Australia and Europe with more being installed every month.

Other forms of digital currencies are available too, Litecoin (LTC) was the second coin to be made after Bitcoin and more recently Darkcoin (DRK) has been created offering everything Bitcoin offers plus more.

For those who are not at all familiar with Bitcoin, I will offer a brief summary. Bitcoin is a form of digital online currency. It can be bought online with real US or Australian dollars. The currency isn't controlled by banks, governments or organizations. It is 'decentralized' which means there is no governing group controlling it.

Specialized computers 'mine' Bitcoin using computer software. As a reward for mining you receive small portions of Bitcoin. Once you have some Bitcoin, you need a digital 'wallet' to store it. Using this wallet you can send Bitcoins to anyone anywhere else in the world at almost zero cost.

For example, if you wanted to send money to family in another country. Right now, using normal currency, a bank or foreign exchange company (eg Western Union) would charge anywhere between $10 and $50 dollars depending on the amount and country you are sending to.

Using Bitcoin, it would cost less than 10 cents, the transaction happens quickly and safely and there is no need to pay anybody for the service.

In my opinion (and the opinion of many), Bitcoin is great and it's here to stay. Another great aspect of it (but also a limitation at the same time) is the fact that every single Bitcoin transaction is recorded online in a public database known as the 'blockchain'. This blockchain can be viewed by anyone with a PC. It lets you see exactly what funds have been sent to which wallets anywhere on the planet.

What this means potentially is the end of corruption in the banking world. After all, if the whole world can see who you are sending money to and who is sending money to you, would you risk doing something illegal or unethical?

On the downside, for anyone wanting to purchase something discreetly, Bitcoin really doesn't allow for this.

Enter Darkcoin. Created by a computer programmer, Evan Duffield based in Arizona, USA. Darkcoin allows the customer to send money/purchase goods anywhere in the world with complete anonymity. There is no way to trace the transactions due to the specially written code and involvement of hundreds of specialized 'Masternode' servers located across every continent in the world.

This is the only digital currency in the world that allows for this. Think of it as "e-cash", except you can use it online to purchase anything, anywhere in the world. You don't need to be face-to-face with someone like traditional cash.

Unfortunately, there will always be the criminal element drawn to this (much like Bitcoin in the beginning) however as the currency grows, more and more people will utilize a service like this for legitimate purchases.

In the short time that Darkcoin has been around, it has grown from being worth less than $100,000 to now being worth over $10,000,000 as at November 2014.

For the record, I do hold some Bitcoin, Litecoin, Dogecoin and Darkcoin.

Credit: darkcoin.io


Nov 26, 2014 12:06pm
Good introduction to digital currencies. It would be worth doing a repeat article in six months or a year to report progress in the uptake of the digital currencies.
Nov 27, 2014 3:08am
Hi thanks for the feedback, I will certainly be interested to write a follow up early next year to see how crypto currencies in general start off in 2015. I think it will be a big year for Bitcoin and Darkcoin in particular.
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