Frequently asked Questions - Page 3

51% Attack is a hypothetical situation which might occur if more than a half of the computing power in a network is controlled by one person or one cooperating group, which gives them complete control over the entire network.

Altcoins (alternative coins) are any cryptocurrencies alternative to Bitcoin. For example, Litecoin, Zcash, Dogecoin, Monero, Ripple, etc.

Proof-of-Work (PoW) is a process of validating new blocks in a blockchain. PoW-systems require validators to solve different puzzles using their computing power in order to validate transactions and create new blocks. 

Proof-of-stake (PoS) is a category of consensus algorithms for public blockchains that depend on the validator's stake in the network. In contrast to PoW algorithms, where participants are rewarded for solving cryptographic puzzles to check and confirm transactions in order to create a new block (see Mining), in public blockchains based on PoS, the set of validators alternately offer new blocks and vote for them, and the weight of each vote directly depends on the size of a deposit of a voter (stake). Advantages of PoS are greater security, reduced centralization and energy efficiency.

P2P (peer-to-peer) is a computer network in which all participants are equal and can interact with each other. Each participant is a client and a server at the same time.

ICO (Initial Coin Offering) is a way of raising capital with cryptocurrency. This process is somewhat similar to the Kickstarter, but it occurs in the field of digital currencies. The developer present his project to the world, and people invest their cryptocurrencies in it.

To date, there are about 17 million bitcoins have been mined, which is 80% of all bitcoins that can possibly be mined. Due to the fact that reward for one mined block is constantly reducing, miners will not be able to mine more than 21 billion bitcoins


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