Cryptocurrency & the Blockchain

A cryptocurrency blockchain is the master ledger that records and stores all prior transactions and activity, validating ownership of all units of the currency at any given point in time. As the record of a cryptocurrency’s entire transaction history to date, a blockchain has a finite length, containing a finite number of transactions that increases over time. Identical copies of the blockchain are stored in every node of the cryptocurrency software network – the network of decentralized server farms, run by computer-savvy individuals or groups of individuals known as miners, that continually record and authenticate cryptocurrency transactions. A cryptocurrency transaction technically isn’t finalized until it’s added to the blockchain, which usually occurs within minutes. Once the transaction is finalized, it’s usually irreversible. Unlike traditional payment processors, such as PayPal and credit cards, most cryptocurrencies have no built-in refund or chargeback functions, though some newer cryptocurrencies have rudimentary refund features. During the lag time between the transaction’s initiation and finalization, the units aren’t available for use by either party. The blockchain thus prevents double-spending, or the manipulation of cryptocurrency code to allow the same currency units to be duplicated and sent to multiple recipients.

On the other hand, cryptocurrencies come with a host of risks and drawbacks, such as illiquidity and value volatility, that don’t affect many fiat currencies. Additionally, cryptocurrencies are frequently used to facilitate grey and black-market transactions, so many countries view them with distrust or outright animosity. And while proponents tout cryptocurrencies as potentially lucrative alternative investments, some financial professionals view them as only suitable for pure speculation. This is probably the single most recognizable benefit of ZeLoop. In essence, it is not just a cryptocurrency, it is a digital mechanism through which gold can be indirectly purchased in the easiest, most secure, and least expensive way. It disconnects the reward value from the residual value of the recyclable material collected.