Cryptocurrency Lawyer New York

• Blockchain is a decentralized software application that tracks data by validating and storing data in blocks that are strung and linked together chronologically in an immutable chain. The data blocks are linked together through the use cryptographic “hash” of the previous block, a timestamp, and transaction data.
• “Hashing” is method that uses algorithms to both mathematically encrypt the data blocks and connect and string them into a chain.
• The data commonly consists of transactional information recorded in ledgers, such as cryptocurrency exchanges, property purchases, health records, credentials, and many others. The ledgers are distributed across many individual computer servers (called nodes) through a peer to peer (P2P) network.
• All nodes across the blockchain ecosystem receive the same continuous stream of data and updates simultaneously, which can be transmitted privately and anonymously. The network does not use a third-party intermediary to manage, monitor, or interfere with transactions. There is no central authority to approve transactions.
• The blockchain system is self-regulating due to the P2P computer network of nodes which all verify incoming data and distribute copies of the data across the network. Once all the nodes verify and agree on the data, only then does the data become recorded into blocks and linked into a chain.
• The data chain is immutable and irreversible due to the hash encryptions, and because all activity on the chain is public across the network and seen by all the nodes. Altering a block of data is virtually impossible because doing so would necessitate, publicly across the P2P network, cracking the encryptions of all subsequent blocks of data on the chain to get to the block one wants to alter.
• Blockchain technology was created to allow for the existence of cryptocurrency like Bitcoin. But Blockchain technology transcends crypto currencies and has applications for all types of data storage.

• Cryptocurrency “coins” are digital currencies that are powered and secured by blockchain technology, rather than a centralized government authority. These coins are essentially packets of immutable math code that a blockchain P2P network of computer servers (nodes) allows to be distributed, bought, and sold on the network.
• Transactions on the blockchain are only recorded after unanimous validation by all the nodes in the network. Transactions are validated securely and publicly on the blockchain. At the inception of a blockchain’s creation, irreversible rules are set regarding how many coins there ever will be and how to create new coins (mining).
• Miners are networks of computer servers that validate coin transactions to enable their recording on the blockchain. Build into a blockchain’s software are rules that encourage miners to validate these transactions. Miners that solve certain mathematical problems fast enough will then link the next block of data onto the chain and receive a coin as a reward. Often the number of coins that can ever be available is finite; therefore, over time the blockchain software makes the mathematical problems harder for miners to solve.
• There are hundreds of different types of cryptocurrencies. Some of the most well-known include:
  • Bitcoin
  • Ethereum
  • Tether
  • XRP

Advantages of using crypto:

• No central government authority to create excess coins / Protection from Inflation
• Secure and private
• Removes the middle man aka a bank, hence cost effective
• Greater liquidity
• Widely and universally used
• High transaction speeds with low costs
• Transparency

Disadvantages:

• No refund and cancellation policy for incorrect transactions
• Risk of data loss
• Hard for government to track illegal transactions and theft
• High risk and high volatility
• More vulnerable to scams and hackers
• High energy consumption due to miners

Like cryptocurrencies, they are immutable code, cryptographic assets, transacted and recorded on a blockchain. They differ from cryptocurrencies in that they are non-fungible; in other words, they are not identical. A unique encrypted identification code and metadata distinguish one NFT from other NFTs. Bitcoin for example is fungible; if you trade one Bitcoin for another Bitcoin, you’ll get exactly the same thing. A one dollar bill is fungible because any particular one dollar bill in your pocket is no different from any other one dollar bill circulating. It is this very fungibility which allows dollars, other fiat currencies, and cryptocurrencies to be mediums of exchange in commerce. On the other hand, a famous Picasso is non-fungible as it is unique.