Answers to Your UnitedCoin and Blockchain Questions
Frequently Asked Questions
What is a cryptocurrency (Bitcoin, UNITs, Ethereum)?
A cryptocurrency is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Digital assets are transferred person to person via the internet.
No central bank means the fees are much lower, and there are no prerequisites for joining.
How do cryptocurrencies work?
Your cryptocurrencies are then kept in your wallet on your computer or mobile device. They can also be stored offline in a paper wallet.
All transactions are kept on a public ledger called a blockchain.
When you make a transaction you broadcast the transaction to the blockchain with your public address to the wallet address you are sending the cryptocurrency to and the amount.
Sending cryptocurrency is as easy as sending an email.
You can buy anything with bitcoin you can buy with a card or cash.
What is a cryptocurrency wallet?
A cryptocurrency wallet is used to send and receive cryptocurrencies.
Your wallet holds public addresses and private keys to sign and broadcast transactions to the blockchain.
Your wallet can be used on your computer or mobile device using a mobile app.
What is the blockchain?
The blockchain is a public ledger of verified cryptocurrency transactions.
A blockchain can also be a digital list of files and balances.
It provides a verified proof of transaction publicly.
It removes the use of using a central authority because every miner has a copy of the ever-changing public ledger.
Uses 26-35 digit public addresses to identify each account instead of names to retain a level of anonymity.
This technology has applications in multiple industries including finance, import and export, invoicing, contract issuance, etc.
What is cryptocurrency Mining?
Similar to gold mining, cryptocurrency mining is the process by which you digitally dig for cryptocurrency, by running special scripts with algorithmic equations and hash functions that verify transactions on the blockchain.
This process allows the confirmation of transactions, and adds new cryptocurrency to the blockchain, and as a reward the miner receives cryptocurrency.
What is Proof-of-Work (POW)? What is Proof-of-Stake (POS)?
POW mining requires equipment to verify blockchain transactions.
Miners are rewarded with block rewards for mining a block from the blockchain and this is how new coins are created.
POW may create a monopoly among companies with expensive equipment and reduce the decentralized and distributed ability of cryptocurrencies.
In POS-based cryptocurrencies the creator of the next block is chosen in a deterministic (pseudo-random) way, and the chance that an account is chosen depends on its wealth (i.e. the stake).
In POS cryptocurrencies the blocks are usually said to be forged (in the blacksmith sense of this word), or minted, rather than mined.
Maintains decentralization and distribution within the network by giving coin holders the power.
How do I acquire cryptocurrencies?
You can use an exchange.
You can purchase them from a person.
You can be paid in cryptocurrency.
You can mine coins using mining equipment.
You can signup for a UnitedCoin account and receive 5 units when you deposit $50 or more.
How do I use/spend cryptocurrencies?
Cryptocurrencies can be sent using your computer or smartphone with a mobile app.
You send cryptocurrency to an individual using the public address they share with you.
To spend your coins requires a private key you receive when you open your cryptocurrency wallet. On mobile apps this process is automated for ease of use.
You can also acquire a cryptocurrency debit card in order to spend in a familiar way.
UnitedCoin UNITs can be used with the UnitedWallet app or with your UnitedCoin Visa debit card.
Can I walk into a store and buy using cryptocurrency?
Yes. Real stores are starting to accept cryptocurrencies as a payment currency, and its number increases by the day. Many online services offer convenient applications for both the consumer and the store to buy and sell very easily using cryptocurrency. Now you can find many ATMs selling bitcoin, but the number of 2-way ATMs (the ones that sell and buy) is increasing. As a UnitedCoin member, you can use the VISA debit card connected to your account to make purchases anywhere VISA is accepted.
What makes cryptocurrencies valuable?
Cryptocurrencies have opened up a brand new platform for innovation.
Cryptocurrencies are changing finance the same way email changed message sending, when the market is open new ideas can move quickly and easily.
No need to trust the other person when transacting.
Database is technically unhackable: have to hack 51% of all machines within 10 minutes to hack it.
Very fast transactions.
What are the benefits of cryptocurrencies?
There is no central bank.
For individuals and businesses fees are reduced.
It cost nothing to start accepting cryptocurrencies or to setup an account.
It is easy to setup with a tablet or mobile phone.
There are no chargebacks.
You will earn new business from the loyal cryptocurrency economy.
Are cryptocurrencies taxable?
In Japan Bitcoin is tax free.
Cryptocurrencies are currently categorized as an asset/property by the Internal Revenue Service.
Subject to capital gains tax: 15% and as low as 5%.
Can I use cryptocurrency anonymously?
Not completely anonymous, but with a great level of privacy together with transparency. Cryptocurrencies are not as anonymous as hard-cash, but significantly more than credit card transactions. Also, there are tools available and under development that promote privacy, as well as technologies to protect against financial corruption and voting systems.
What is the future of the blockchain?
The blockchain is a ground-breaking protocol, capable of changing how we buy and sell goods and even more, including the way we vote, identify ourselves, support causes, and have a huge impact on the world economy. We are at the bridge of incredible innovations.
Copyright 2017 UnitedCoin Organization, Inc. All Rights Reserved
