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What are Cryptocurrencies?

Cryptocurrencies are new and disruptive technologies that allow for decentralized peer-to-peer transfer of value operating within the infrastructure of the internet. Sending money without the need for a bank is only a tiny subset of the potential application for these protocols. In many ways this technology fits hand-in glove with the innovation and acceleration of Artificial Intelligence and machine learning.

Cryptocurrencies are new and disruptive technologies that allow for decentralized peer-to-peer transfer of value operating within the infrastructure of the internet. Sending money without the need for a bank is only a tiny subset of the potential application for these protocols. In many ways this technology fits hand-in glove with the innovation and acceleration of Artificial Intelligence and machine learning. The machines are learning from our exchanges of information. Cryptocurrencies are data sets that currently track the exchange of value, but the technology allows for the tracking of any form of exchange, even our emotional behavior is getting mapped into our digital environment. The lessons learned from this flow of data are proving to be extremely valuable.

Our society is in the midst of a technology revolution as AI makes its way into all of our every-day activities. The need for public and secure and disintermediated value transfer, protected by cryptography, attracts capital investment. This normal market behavior then increases the cost of the more desirable protocols. This influx of capital spills over from the innovative technology sector, sometimes in a frenzy, to create fun and artistic projects that don’t necessarily have utility, but can generate significant price appreciation. Here at Luxolo, we have curated a selection of digital assets that represent a wide variety of potential use cases and popularity.

How Are They Different?

There are now many blockchains to choose from and more being created every day. They differentiate themselves in a variety of ways, but some common questions to ask are:

How secure is the network?

How decentralized is the network?

How many transactions may be completed within a certain time?

These three questions are collectively known as the “blockchain trilemma.” Vitalik Buterin, the founder of the Ethereum network, coined this phrase by claiming that each blockchain presents a relative proportion of security, scalability, and centralization. Attempting to address these three metrics simultaneously has spawned much of the innovation and diversification of blockchain technologies.

Additionally, we need to consider:

What problem does the token solve?

What service does the token provide?

How popular is the token?

Keep these questions in mind as you read a brief synopsis of the digital assets available at Luxolo.

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