I’m sure many of you have heard of Bitcoin, but many people are not sure what it is or how it works. Cryptocurrencies can be a rather confusing and difficult area to understand, even for this tech savvy generation. So, we’ll start with the basics.
The basic idea of these cryptocurrencies is decentralization. There is no central authority (some cryptocurrencies are better decentralized than others), there is no central server and all transactions are saved in a decentralized database called a blockchain.
But, Bitcoin is not the only cryptocurrency that is available. There is now one for the cannabis industry called the “Cannabis Industry Coin” or just simply the XCIcoin. This cannabis industry coin and Bitcoin both use blockchain technology. But, there is a major difference between these two cryptocurrencies. XCI is private (anonymous) while BTC is public. XCI is focused on legal Cannabis Markets, while Bitcoin is a general cryptocurrency. The XCI coin is an open source project that is designed to make Cannabis payments easier, more secure, decentralized, and driven by people instead of the banks.
Before getting started with the XCIcoin, here are a few of the basic terms which you should know about:
1. Private key
No matter which cryptocurrency you use, each is protected by a strong cryptography. Your private key is the equivalent of a key to a safe, as without it, you won’t be able to gain access to your coins. The private key is normally a combination of numbers and letters, so make sure you keep a backup of the private key in a safe place. Without the key, you will not be able to get your funds in your specific blockchain.
The address is the equivalent of your bank account number for your regular bank account. If you wish to receive a payment, you would just provide the sender your address and they will be able to send the payment. The address and the private key correspond to each other. It is possible to backup an address from your private key, but it is not possible to backup a private key from an address.
When it comes to cryptocurrencies, the wallet is software that can manage the transactions by helping with the sending and receiving of coins. The wallet is able to interact with the blockchain – which to remind you is the decentralized database of all the transactions. The wallet software can work because of your private key. All coins have their own wallet (and blockchain). There are different types of wallets – mobile wallets, desktop wallets and web wallets. There are also light wallets. These are wallets that don’t store blockchain locally on your PC, because it can be very big, but connects to the remote server to interact with blockchain.
For example, here is the open source wallet for the Cannabis Industry Coin:
You can choose a wallet that matches your OS. Because the XCI Coin is new, there is not so much software for it yet, but it is expected that there will be a lot more software available soon.
Another term that you should be familiar with is “mining”. Mining is a process of securing the blockchain with your PC processing power (CPU or GPU). Miners are producing blockchain blocks with transactions in it. For producing blocks, miners get their rewards – which is called a “block reward”. You can read more about mining on the various cryptocurrency websites that exist.
The XCI coin is a truly decentralized cryptocurrency with CPU|GPU efficient mining, it is ASIC resistant unlike Bitcoin. There is a built-in miner in the XCI Coin wallet and you can try XCI Coin mining in one click with your PC.
Cryptocurrency exchange is a place where people can trade one coin to another. For example, there is only one current XCI exchange where you can buy or sell XCI for BTC or for another cryptocurrency. It is possible at these exchanges to watch the current price of the cryptocurrency, as well as look at historical prices too.
So, to simplify the process of receiving a payment in XCI coin, you do the following:
1) Download the latest version of the XCI Coin wallet
2) When the wallet loads up, an account will be generated automatically. You will then be able to see your public and private key. When you have these details, you can then get started with receiving a payment.
3) Make sure you backup your private key and keep it in an offline location, such as on a piece of paper. Remember, you will not be able to access your XCI account without it. We’d also recommend for you to back up your wallet file as well.
When it comes to receiving payments from many different customers, you would need to create a payment ID for each customer. Each ID is a 64-hexadecimal code.
Let’s use an example. If you wanted to receive a 100 XCI payment from a customer called Paul Jones, you will ask Paul to send 100 XCI to your address. When he sends this payment, you will then be able to see it in your wallet. To separate Paul’s transaction from the others, you need to create a payment ID for Paul using the payment ID generator. Remember to do this for each new customer. You need a payment ID to ensure you have the highest privacy protection level for you and your customer, and still be able to separate payments.
We know that it can be quite difficult to understand, so we hope this guide has been useful. Cryptocurrencies are expected to increase in popularity in the next few years, and it is hoped the XCI coin will be one of the best ways at local dispensaries to pay for cannabis.
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Published at Sat, 08 Apr 2017 05:00:00 +0000