ISSN:
2181-3906
2023
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 2 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
324
GENERAL INFORMATION ABOUT CRYPTOCURRENCY
Esonova Shahlo Abdimurot qizi
Denau Institute of Entrepreneurship and Pedagogy
Faculty of Entrepreneurship and Management
Accounting and auditing department
A second-year student
e-mail: esonovashahlo7@gmail.com
Nizomova Mehrangiz Jamoliddinzoda
Denau Institute of Entrepreneurship and Pedagogy
Faculty of Entrepreneurship and Management
Banking and auditing
A third-year student
e-mail: nizomovamehrangiz@gmail.com
https://doi.org/10.5281/zenodo.8024825
Abstract.
First of all, this article contains information about the most popular
cryptocurrencies today, as well as detailed information about cryptocurrencies and bitcoins.
Key words:
Blockchain technology, cryptocurrency, stock, digital currency, virtual miner,
bitcoin technology, hash function.
ОБЩАЯ ИНФОРМАЦИЯ О КРИПТОВАЛЮТЕ
Аннотация.
Прежде всего, эта статья содержит информацию о самых
популярных на сегодняшний день криптовалютах, а также подробную информацию о
криптовалютах и биткоинах.
Ключевые слова:
технология блокчейн, криптовалюта, акции, цифровая валюта,
виртуальный майнер, технология биткоин, хэш-функция.
Introduction.
Cryptocurrency is a type of Digital Currency whose internal units of account
are provided by a decentralized payment system (no internal or external administrator or other
administrator) and its analogue operates in a fully automatic mode. The cryptocurrency itself does
not have any special physical or electronic form - it is simply a number indicating the amount of
these units of account recorded in the corresponding position of the data packet of the data transfer
protocol, and often, even unencrypted, as well as all other information about operations between
system addresses. As the Internet developed, people began to pay money "remotely". It is
impossible to give money from hand to hand. Therefore, it is necessary to turn to "middleman",
that is, electronic payment systems, banks or couriers. Any "partner" will be paid for the practice
he performs, because no one wants to work for free. The more money you transfer, the more you
lose in taxes. As information technology developed, people wondered: "how to reduce costs and
run a business with a 100% increase in FIK?". There were many offers, but all were rejected, after
all, even after removing the transaction taxes, how can you protect yourself from fraudsters - how
can you prove that it was you who transferred or received the money?
The solution was found in 2009 when Satoshi Nakamoto released a new payment system
based on mathematical calculations. The currency used for payment was bitcoins. They are stored
in special wallets and can be downloaded and used in another wallet.
"Bitcoin" is virtual money that has no material equivalent and is simply a collection of
records in a database. In order to determine whether money has been sent or received from a
Bitcoin wallet account, experts have suggested publicly showing how many bitcoins have been
sent and received from one wallet or another address. That is, when you connect to the
cryptocurrency network, you will be able to see all Bitcoin transactions. Also, all wallets are
anonymous (they don't tell you who owns them), so you'll never know if someone doesn't tell you
they own a wallet.
ISSN:
2181-3906
2023
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 2 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
325
In general, "Bitcoin" is virtual money that has no material equivalent and is simply a
collection of records in a database. Because both the base and the technology on it are so reliable,
it could be of great value to humanity. Cryptocurrencies are created on the basis of the base called
"BlockChain". We will try to explain how it works:
• The basis of the idea is to create a decentralized database (which does not have a main
server like bittorrent) and store copies of the data encrypted on the server of all participants of the
system. In Bitcoin, it is the transaction base of all operations performed in cryptocurrency units.
All registered and this information is available to all participants;
• All new data in the database correspond to existing copies of the participants.
Synchronization and consensus building algorithms work. In order to steal it, it is necessary to
change the data of at least half of the participants, which is almost impossible to do in millions of
networks;
• In order to use a fake payment system, it is necessary to change the distributed databases
stored in the block chain (thousands of computers), and for this it is necessary to have access to all
computers.
• But technology is technology and money is money. Materially available. Certain rules were
adopted when creating the cryptocurrency called "Bitcoin":
1. In order to avoid strong inflation, «Bitcoin» was originally intended to limit the amount
of these virtual money. Therefore, the concept of virtual gold equivalent was introduced, which
can be acquired by buying or mining. The method of obtaining new "Bitcoins" is called "Mining"
("virtual miners", but they work on their own computers and specially designed systems, not with
the help of picks).
2. To make "Bitcoin" more similar to gold, acquiring it has been made as difficult as mining
for gold. Otherwise, new units will be added to the existing chart of the cryptocurrency. For this,
all miners ("virtual miners") perform very complex calculations using their computers or a special
system - they throw the calculated numbers into the given template using a special formula called
a hash function.
3. The template is determined by such a calculation that a new unit of "Bitcoin" appears
once every 10 minutes in any number of miners. Every two weeks, the system introduces
corrections in order to complicate the "mining" of the next units of the cryptocurrency, which helps
the desired pattern to rise or fall.
4. The person who added a new unit of cryptocurrency will be reimbursed for his expenses
(in "Bitcoin"). Over time, this amount decreases, but the growth of the cryptocurrency rate easily
compensates for this.
5. People who give their computers for mining simultaneously help this system to make
transactions (payments), as well as synchronize the database between all participants of the system.
6. Each user of the system is given a special address (a cryptographic account created on
the basis of a simple key) and a secret key. Through this, he can move transfers from one address
of the system to another. It's just like a regular wallet, except transfers are transparent and everyone
can see how much has been transferred to whom.
Advantages and disadvantages of Bitcoin.
Currently, due to the very high rate of the
Bitcoin currency, calculations are carried out in a small fraction of it. "Satoshi" is often used in
greetings. Its value is equal to 0.00000001 Bitcoin.
Independent.
The system is completely autonomous and does not need anyone's help. You
can see the transfer of funds from one wallet to another, but you cannot ban or block it. Even if
these people are members of society.
Limited.
According to the algorithm by which the cryptocurrency was created, a total of
21,000,000 Bitcoins can be found, after which the production will stop. No one knows what will
ISSN:
2181-3906
2023
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 2 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
326
happen as a result of this, unless there is a financial explosion, the cryptocurrency will remain in
circulation and will change its rate all the time.
Complete privacy.
It is impossible to know who owns a Bitcoin wallet by its numbers,
which opens the way to illegal money laundering and fraud.
Absence of "middlemen".
Bitcoins are transferred without a third party (bank). This
serves to quickly "sign" the deal. But this compromises its security and the transferred funds cannot
be recovered.
Not provided.
Cryptocurrency, like real money, is not provided with a constant reserve,
and for other reasons, it is not out of the question that the Bitcoin rate will suddenly drop to zero.
Does not work officially.
"Bitcoin" can have a bad effect on the financial system, which
is why many countries look at the cryptocurrency with distrust. In Russia, a law has been prepared
to prosecute those involved in the cultivation of Bitcoin, but it has not yet come into full force. But
recently, Venezuelan President Nicolas Maduro approved the initial issuance of the country's
official cryptocurrency, El Petro. As you can see, the future of cryptocurrency is not clear yet.
However, this situation does not prevent the desire of many people to earn money.
How to use and how to use cryptocurrency?
The easiest way to talk about the use of cryptocurrency is to use the example of the most
famous - Bitcoin. The difference between other systems is that they are less popular and therefore
less accepted as a means of payment.
The first thing to start using or earning bitcoins is to install a special client program (or
"wallet"). There are "light" and "full" clients. The first ones take up little space and are ready to
work almost immediately after installation and work by requesting data from the Bitcoin network
servers. The full client requires tens of gigabytes of free space and synchronizes data with the
blockchain for a long time before the first launch. But with the following work, the full client takes
less time, especially with slow internet connections.
When the wallet is installed and you are registered in the system, all that remains is to buy
bitcoins and top up your account in one of three ways:
• purchase;
• accept as a gift.
With money in the account, you can pay for services and goods or use bitcoins as an
investment, because their value is growing steadily and rapidly due to the growing demand and
limited amount.
Criticism:
• Cryptocurrencies are often compared to pyramid schemes and economic bubbles, such as
the real estate bubble. or perhaps a pyramid scheme) is based on the desire to give weight to
something that has little or nothing to do with it, except that people will pay for it" and includes
the Tulipmania pyramid scheme, South Seas Companies and The Dotcom Bubble. There are also
examples of blatant fraud in this area.: Parasitizing the public's lack of awareness of the
characteristics of cryptocurrencies, the OneCoin system was created, which was positioned as a
cryptocurrency, but at the same time it was originally a financial pyramid; all information was
centralized only in the issuing company, and the latter could change any information arbitrarily,
because there was no blockchain, it was only a regular the database is simulated by SQL.
• Robert Shiller, an American academic economist and winner of the Alfred Nobel Prize in
Economics, suggests that Bitcoin is similar to an economic bubble. At the same time, any
commerce that uses cryptocurrencies suffers from their high volatility.
• Former Fed Chairman Alan Greenspan called Bitcoin a bubble with no intrinsic value.
• On March 14, 2014, businessman Warren Buffett called Bitcoin a "mirage" on the TV show
"Squawk Box" and advised him to "stay away from it."
ISSN:
2181-3906
2023
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 2 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
327
• As Australian economist John Quiggin points out in The Bitcoin Bubble and the Bad
Hypothesis] </ref>, “Bitcoin is the best example of a pure bubble”. Like any monetary asset, from
gold to tobacco, bitcoin retains its value as long as people are willing to accept it. But the
willingness to acquire an asset always depends on the asset's value, not just on other people's desire
to own it, but on its use. Tobacco can be smoked, gold can be made into jewelry, the US dollar can
pay off obligations to the US government. But Bitcoin has no source of value. If bitcoins are no
longer accepted as payment for goods and services, their value is guaranteed to be zero. At the
same time, bitcoins demonstrate a failure of the Efficient Market Hypothesis, according to which
the market value of an asset is determined by the current valuation of the services or income stream
provided by the asset. creates. Cryptocurrencies do not directly generate income, which means
their price should be zero.
• Goldman Sachs investment bank experts compared Bitcoin, Ethereum quotations and
shares of companies that announced the introduction of blockchain technology in their business
and concluded that a huge bubble has appeared around them. crypto industry.
• First Deputy Governor of the Central Bank of the Russian Federation, Ksenia Yudaeva,
stated: payment instruments are "hundreds of times more efficient than traditional payment
systems.
Conclusion.
You don't need to understand how a cryptocurrency works from the inside to
use it. At the very least, you shouldn't know more than you know about how the bank card system
works.
A simple explanation of how cryptocurrency works can be compared to the banking system,
except that all payments are anonymous. In both cases, a complex system that allows you to
transfer funds and receive them from others, keep track of transactions and balances, and transfer
all information electronically.
The main difference between cryptocurrencies and bank transfers Instead of banks and
governments regulating the circulation and issuance of Money, digital in the field of money, this
role is played by an algorithm. A bubble that bursts in an instant, leaving thousands of people
broke, or a revolution in the world of electronic payments - the attitude towards cryptocurrencies
today is completely different. Today, you can hear about cryptocurrencies at every turn, but not
everyone fully understands what they mean and how to use them.
REFERENCES
1. Birodarlar tangalar dunyosi Turli kriptovalyutalar o’rtasidagi farq nima:
2. Lenta.ru shahri, 2013-yil 18-dekabr
3. Kriptovalyuta nima F. Tomlinson 2013-yil 6-fevral
