Talk:Cryptocurrency

Is Cryptocurrency traceable to where and when it was minted?

I understand legal tender usually has this property. Does each unit of cryptocurrency contain an indelible reference to the date/time and computer/node on which it was originated and thereby to the real territory/jurisdiction (or multiple?) in which the computer/network was located? What about crypto mined in international waters? Is the information encrypted or public? Is this maybe a differentiator and a way to classify different types of cryptocurrency? How is this solved for the classic, Bitcoin? A table listing the features of various popular cryptocurrencies and what info is public and what is private would enhance the Wikipedia article.

Each unit of cryptocurrency, including Bitcoin, contains a unique identifier called a "transaction ID," which records the time and date of the transaction, the sender's address, the recipient's address, and the amount transferred. This information is stored on a distributed ledger, which is a public and decentralized database shared among all nodes in the network.

The distributed ledger ensures that the transaction records are immutable, tamper-proof, and transparent, as every node in the network maintains a copy of the ledger. Therefore, the jurisdiction of the cryptocurrency is determined by the location of the nodes that maintain the ledger.

Crypto mined in international waters would still be subject to the same rules and regulations as any other cryptocurrency, as it would be recorded on the blockchain, which is accessible to anyone with an internet connection.

The information on the blockchain is encrypted to protect the privacy of the users, but the public ledger still allows for a degree of transparency. For example, while the sender and recipient's identities are not recorded on the blockchain, their addresses are visible.

Different cryptocurrencies may have varying levels of transparency and privacy, depending on the design of their respective blockchain networks. Some cryptocurrencies, like Monero, are specifically designed to provide greater anonymity and privacy for users.

A table listing the features of various popular cryptocurrencies, including their level of transparency and privacy, would be a useful addition to the Wikipedia article. It would help readers understand the differences between different cryptocurrencies and make informed decisions about which ones to use.

Geographical bias

The countries list in the Increasing regulation section should be in alphabetical order per WP:GLOBALIZE. 121.98.204.148 (talk) 22:00, 17 January 2024 (UTC)

 Done Tollens (talk) 10:42, 18 January 2024 (UTC)

Semi-protected edit request on 6 April 2024

Security and Risks in Bitcoin

Bitcoin, like any other digital asset, is not immune to security threats. Understanding the potential vulnerabilities and risks associated with Bitcoin is crucial for users to safeguard their investments and transactions.

1. Potential Vulnerabilities

a. Double Spending: One of the inherent risks in decentralized currencies like Bitcoin is the possibility of double spending, where a user attempts to spend the same bitcoin more than once. This risk is mitigated by the blockchain's consensus mechanism, which validates and timestamps transactions.

b. 51% Attack: A 51% attack occurs when a single entity controls the majority of the network's mining hash rate, enabling them to manipulate transactions, reverse transactions, and potentially double spend bitcoins. While such an attack is theoretically possible, it becomes increasingly difficult as the network grows.

c. Wallet Vulnerabilities: Bitcoin wallets, whether software-based or hardware-based, are susceptible to various security risks such as malware, phishing attacks, and physical theft. Users must employ robust security practices to protect their private keys and ensure the integrity of their wallets.

2. Hacking Incidents

a. Exchange Hacks: Over the years, several cryptocurrency exchanges have fallen victim to hacking incidents, resulting in the loss of millions of dollars worth of bitcoins. These breaches highlight the importance of choosing reputable exchanges with robust security measures in place.

b. Wallet Breaches: Individual users have also experienced wallet breaches due to compromised private keys, insecure storage practices, or vulnerabilities in wallet software. High-profile cases of wallet hacks serve as reminders to prioritize security and adopt best practices for securing private keys.

3. Measures to Enhance Security

a. Cold Storage: Storing bitcoins in cold wallets, which are offline and not connected to the internet, provides an added layer of security against hacking attempts and online threats.

b. Multi-Signature Wallets: Multi-signature wallets require multiple private keys to authorize transactions, reducing the risk of unauthorized access and enhancing security, especially for institutional investors and businesses.

c. Two-Factor Authentication (2FA): Enabling 2FA adds an extra layer of security to Bitcoin wallets and exchange accounts, requiring users to provide a second form of verification, such as a code sent to their mobile device, before accessing their funds.

d. Regular Audits and Penetration Testing: Bitcoin exchanges and wallet providers should conduct regular security audits and penetration testing to identify and address potential vulnerabilities proactively.

e. Education and Awareness: Educating users about security best practices, such as avoiding phishing scams, securing private keys, and verifying the authenticity of wallet software, is essential for fostering a secure Bitcoin ecosystem.

Devsharma04 (talk) 06:43, 6 April 2024 (UTC)

 Not done: it's not clear what changes you want to be made. Please mention the specific changes in a "change X to Y" format and provide a reliable source if appropriate.

 Note: Talk quote block added by me for readability. —Sirdog (talk) 08:36, 6 April 2024 (UTC)

Semi-protected edit request on 15 May 2024

Suggestion for Correction of Citation #239

Hello,

I noticed that citation #239 in the document has a permanent dead link. I found a suitable replacement online that can be used instead. The details are as follows:

Change

""Venmo adds support for buying, holding and selling cryptocurrencies". TechCrunch. 20 April 2021. Retrieved 1 August 2021.[permanent dead link]"

to

"Venmo Introduces Cryptocurrency Buying, Holding, and Selling: A Comprehensive Guide." CryptoPro. Accessed May 15, 2024. https://cryptopro.wiki/venmo-cryptocurrency-buying-holding-selling-guide/.

Best regards, Lovefreesky63 (talk) 15:59, 15 May 2024 (UTC)

 Not done: Not only would that not be a suitable replacement, the link does actually work ­– please check it next time. Tollens (talk) 18:33, 15 May 2024 (UTC)

Got it. Thanks. Lovefreesky63 (talk) 19:12, 15 May 2024 (UTC)

Physical crypto

The article said crypto did not exist in physical form. Yet pictures of coins are used everywhere! Also, confusingly, "physical crypto" is a term that's being used in finance because of ETFs. I have added a section on this. Please can someone take a good look at this because it can be confusing. Thank you.Yankinthebank (talk) 13:09, 9 June 2024 (UTC)

Very Lame reference

'Bitcoin: Perils of an Unregulated Global P2P Currency' seems to be the only source for an entire section. I can't find ISBN, Library of Congress numbers, etc. It just looks like 'spew with no peer review'. Thoughts? 2604:3D08:5E7A:6A00:18A4:A8F2:2EAE:2ADC (talk) 23:25, 13 October 2024 (UTC)

Looks like the chapter of a book to me: https://link.springer.com/chapter/10.1007/978-3-319-26096-9_29 Snowman304|talk 00:22, 14 October 2024 (UTC)

Ethereum Case

Introduce of ethereum Case 2409:4089:8312:8AF5:0:0:745:F8A1 (talk) 01:15, 5 December 2024 (UTC)