What is a coin chain (what does a chain in a coin circle mean)

What is a coin chain blockchain technology has features such as decentralization, traceability, and security, but it is still in its early stages. What is a coin chain? What is the token economy? In traditional finance, there exists a new type of currency system – “token” is an irreversible value transfer process in digital asset trading through smart contracts. With the emergence of encryption technology, these digital assets can be traded in various forms and effectively promote capital flow, creating more wealth for society Therefore, we call it a token. It is a token based digital asset; A network composed of tokens will become the foundation of any other digital asset. The holder of the pass has the right to take action on their assets or invest in the project; Shareholders can participate in network construction Unlike traditional securities based tokens, tokens can also be used in various scenarios. For example, if a company wishes to monetize its shares and sell them to third-party shareholders (such as Goldman Sachs), it needs to issue new shares to support the company’s development. This type of company can create new investment products or services by establishing an open and unlicensed new account. This is beneficial for those who want to use distributed ledger technology or ERC-20 tokens like BTC to build business operation platforms

Since most investors believe that they have a Currency basket and a large number of bitcoins as reserves, they will choose to buy more Stablecoin to meet their long-term plans. But when they see the price of Bitcoin drop, they will sell Bitcoin in exchange for a higher price In addition, there are also some irrational behaviors that may have huge consequences:

1. The significant drop in market prices has led to some users exiting the system. 2. Because investors are unwilling to pay fees, they are unable to obtain returns. 3. The “exchange+miners” (i.e. buyers/sellers) jointly occupy a significant share of the entire market. 4. Maximizing the interests of the exchange may be affected by a run. 5. Due to the inability of the exchange to provide collateral like cash to maintain normal trading hours. 6. Hacker intrusion caused the exchange to freeze customer wallets and other information, resulting in invalid transactions. 7. Exchanges, especially over-the-counter trading platforms (representatives of OTC platforms), often use this mechanism to steal funds from exchanges

According to the data recently released by the Bank for International Settlements, nearly 400 companies around the world have said that they are exploring the introduction of the Central Bank Digital Method (CBDC). Although China has banned virtual currency, it has begun to gradually promote the pilot work of legal Digital renminbi in China. The central bank is also studying how to enable commercial institutions to continue conducting electronic payment business without changing existing policies, which is a good thing

What does the chain of coin circles mean

Chain is a type of blockchain technology that can be used as a means of value transmission and transmission.

When trading on Bitcoin or Ethereum, there needs to be a “smart contract”, which is a blockchain with a string of numbers to ensure its authenticity and effectiveness. For example, the smart contract is a data structure that realizes transactions based on some encryption algorithm. When you transfer funds in a decentralized network, if a node launches an attack on that address, it will cause the entire network to crash. This attack method is called a Distributed System. This statement is actually quite reasonable because blockchain is a programmable network system.