Cryptocurrency might be the one example where co-creating meets value creation in the most efficient sense possible, without additional transactions co-creation is turned directly into money. More specifically co-creation means creating money when it comes to cryptocurrencies such as the Bitcoin…
What is cryptocurency and how does it work?
Cryptocurrency is a form of digital currency. Nowadays many different types exist of which the Bitcoin is probably the most well known variety. Other popular cryptocurrencies are the Ripple, Litecoin, Peercoin, and Dogecoin. All these currencies have their origin in the 2008 paper by Satoshi Nakamoto. Satoshi Nakamoto is a bit of a myth himself and all sorts of rumors revolve around this person or group. A Bitcoin can be seen as a chain of signatures that are recorded from transaction to transaction. Transactions are recorded digitally in a public ledger. The currency is also decentralized, meaning that the transactions are not checked by one entity but many entities at the same time, and really the network holds ownership of the Bitcoin technology. The payments take place in a peer-to-peer system thereby getting rid of intermediaries such as banks or credit card companies. Requiring a lower fee for the transactions. Furthermore the currency can be anonymous in the sense that, if someone wants to go through a bit of hassle, nobody can see who is behind a certain “digital wallet”. The main advantage is that Bitcoins are easy to trade and a fee for the transaction is only optional (if you want to jump ahead of the cue). The main downside however is the high volatility with the price of the Bitcoin rising steeply around December 2013, to drop almost as steeply as well soon afterwards.
How does co-creation play a role in cryptocurrency?
Continue reading How co-creation can literally create value