A few millennia ago, people used to trade animals and plants. If you give me five apples, I’ll give you five pears. That’s the simplest approach to trading that exists. However, it immediately breaks down at the second layer.
What if I am the only person that’s selling pears nearby, and everyone else is selling apples? That should make the pears worth more. The same thing is true about animals. If everyone else has pigs and you’re the only one that has horses, those horses are worth much more than the pigs.
That’s why people invented money. The first form of money was seashells, and they represented how much each item was worth. After that came gold and precious metals. This was a standard for a couple of thousand years, and then we invented paper money. Click on this link to read more.
With this invention, every country or bank that issued banknotes had a signature to make them different from people trying to mimic their work. It used to be wax, and now there are many methods that make printing money harder. In the last few decades, we started using plastic credit cards to store money.
This was one of the best inventions ever since you don’t need to carry a wallet full of money. You can just swipe a card, and the transaction happens in less than a few seconds. The final evolution is cryptocurrencies.
Bitcoin is the first thing that popped up in 2009, and it has changed the world. At its peak, one Bitcoin was worth 64 000 dollars. That’s a lot of money. The best way to explain it is digital gold. It’s a proof of work project that is impenetrable and limited to 21 million coins.
It’s an absolute marvel of human ingenuity, and many new projects came after it to try and improve it. One of those projects is PKT Cash. Visit this link for more info https://www.businessinsider.com/nft-strategy-investing-tips-gucci-ghost-trevor-andrew-crypto-art-2021-4.
What is PKT?
Instead of a replacement for gold like Bitcoin, PKT is a technology that will enforce a decentralized Internet. The underlying proof of work concept is the same as Bitcoin, but this project is making it useful. The first thing is to encrypt internet traffic.
That’s mainly because there are a couple of companies that have a monopoly of all the data usage, and this makes everyone comply with their rules. The PacketCrypt protocol is a one-of-a-kind solution to this problem. Here’s how it’s going to work.
There are two main stages called announcement and block mining. The first stage is where the central processing unit of a computer solves an algorithm to issue out a 1KB block that is called an announcement.
Next, the whole process goes into stage two. This is where PKT block mining begins. In this scenario, a miner uses memory to provide proof of work to find a hash that works. That changes all the time. For example, for the block to be added to the blockchain, the first 30 characters need to be zero.
Of course, this changes in each cycle. The reason why this is so important is that that’s how everyone else in the network knows that the miner actually did the work. During the time when the algorithm runs, complex mathematical equations get solved, and the winning solution is gifted with crypto coins.
Is there a tradeoff?
As with anything in life, in order to gain something, you must be willing to put in the time. In the case of PKT, that’s time and memory. It’s a tradeoff that includes these components, and there are many different forms in which this could happen.
The first thing you need to know is that the PacketCrypt algorithm needs four parts in order to work, and they’re all connected to memory. The chance of you getting the winning the next block reward is 1 in 16. Another thing to note is that hash operations always take five steps to be completed. The memory that gets used in those steps gets locked up four times, and there are 31 attempts to encrypt the data.
A few final words
The future of monetary payments is hidden in cryptocurrencies. When you invest, you’re essentially controlling which projects will be used in the future. Make sure to do some more research and support the things that make the world a better place.