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Everything you need to know about cryptocurrencies

You’ve always wondered what exactly are cryptocurrencies? 

We, at MarketOrders, have answered burning questions about how they work and how you can benefit from them.

If you’d like more information about how MarketOrders is using cryptocurrencies and learn about some real-life case studies, download our White Paper here.

Let’s start at the very beginning:

What is cryptocurrency?

A cryptocurrency is a standard currency used for making or receiving payments on the blockchain. The current most popular cryptocurrency is Bitcoin. Each cryptocurrency is a specific virtual currency with its own dedicated blockchain in which it is used for some form of digital transaction.

What is a token?

Tokens are special kinds of virtual currency tokens that reside on their own blockchains and represent an asset or utility. Most often, they are used to fundraise for crowd sales, but they can also be used as a substitute for other things.

What is the difference between a coin and a token?

A coin has its own blockchain when a token does not, therefore tokens run on someone else’s blockchain while coins run on their own blockchain. For example, Bitcoin is a coin because it runs on its own Bitcoin blockchain, whereas the MarketOrders token will run on the Ethereum blockchain. Coins are usually only used for payments, while tokens can be used to access products and services. Tokens are a utility hence why they are commonly referred to as utility tokens.

What is a smart contract?

A smart contract is a computer program or a transaction protocol which is deployed on the blockchain. It is intended to automatically execute, control or document relevant events and actions according to the terms of a contract or an agreement.

The objectives of smart contracts are the reduction of need in trusted intermediators, arbitrations and enforcement costs, fraud losses, as well as the reduction of malicious and accidental exceptions.

Each smart contract contains code that can have a predefined set of inputs. Smart contracts can also store data. Following the distributed model of the blockchain, smart contracts run on every node on the blockchain and each contract’s data is stored in every node. This data can be queried at any time. Smart contracts can also call other smart contracts, enforce permissions, run workflow logic and perform calculations, etc. Smart contract code is executed within a blockchain transaction; the data stored as a result of running the smart contract (i.e. the state) is part of the blockchain’s immutable ledger.

Why use tokens / cryptocurrency, why not stick to cash?

Payment businesses have gone through a revolution in the last few years. From blockchain and FinTech, to artificial intelligence and cryptocurrencies, the world of international commerce is moving faster than ever. A cryptocurrency is a digital asset that is kept on a shared ledger called a blockchain. The blockchain cannot be altered, which means that funds and goods can be transferred securely. This increases transparency and reduces the possibility of fraud.

It is not a surprise to see that both merchants and consumers are turning to cryptocurrency payments as a cheaper and more efficient payment solution. Many major online merchants are already beginning to onboard crypto payments. Cryptocurrency payments have the potential to create a more borderless

and globalised economy, as well as fighting financial inequality by bringing fast and secure financial services to people without access to a bank. This is a big win for everyone in online and offline payments.

Cryptocurrency is a somewhat lawless industry so why does MarketOrders believe it can “police” the jewellery industry using this lawless system?

MarketOrders believes that by creating a trusted network of participants committed to this new way of doing business it will be able to successfully implement cryptocurrency and blockchain into the jewellery industry. Trust will be built by publicly sharing its progress and development. Cryptocurrency regulations are constantly evolving, with some governments creating their own cryptocurrencies, and MarketOrders is constantly working with specialised lawyers to ensure it is complying with changing laws.

Cryptocurrencies are volatile and not regulated – how do you deal with this?

At less than ten years old, cryptocurrencies are a relatively new class of asset hence their volatile prices. MarketOrders hopes that white papers like this will highlight the growing demand for crypto- based assets which can help many industries, especially logistics and supply chains. One aim of the white paper is to change the narrative of negative connotations of cryptocurrency by demonstrating its use in the jewellery industry.

MarketOrders hopes evidence and results from real-life case studies will help to create suitable regulations to protect investors and consumers, and also give consumers a greater choice of assets to spend with or invest in. We live in an increasingly digital world and it is likely that we will see the move to a digital cash society to suit our digital lifestyles.

We hope we’ve provided you with answers! 

If you’d like to know more about MarketOrders’ cryptocurrency, the MOT token, and potential early-stage investment, sign up here.