Need more info? This should help
I know what you’re thinking, “what does cryptocurrency have to do with charity?” It’s a good question. The answer is quite simple: we see the power of blockchain technology as one of the primary answers to providing a better world for everyone who is in need.
SolaceCoin is the cryptocurrency that wants to help others and be a currency that can be used on a day-to-day basis. The spirit of cryptocurrency is decentralization, meaning that everyone, big or small, can have a say in its future. We can achieve this by utilizing this feature of digital currency by building systems that give back to those who need it most.
Before we can start to save the world, let’s first cover some of the most important, basic questions you may have about the impact SolaceCoin will offer.
What is cryptocurrency?
A cryptocurrency (or digital currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions. This allows more control of the creation of additional units and involves third-party verification of the transfer of assets.
Cryptocurrencies use decentralized control as opposed to a centralized banking system (i.e. – The Federal Reserve in the United States). The decentralized control of each cryptocurrency works through a blockchain, which is a public transaction database, functioning as a distributed ledger. This digital ledger is 100% able to be audited.
Why is cryptocurrency valuable?
This is a difficult question to answer. Many currencies’ value is derived from the cost it takes to “mine” them. Other currencies’ values are derived from their practical use case, aka the problem they were designed to solve. And sometimes, the value is purely speculative, meaning the price is only what it is because someone is willing to buy it at that price.
This has been a contentious topic of conversation for enthusiasts and naysayers alike. Both sides have an answer to how cryptocurrency is valued. This uncertainty has cause some to avoid cryptocurrencies but the beauty of an emerging, decentralized market is that evolution occurs at a breakneck pace. Everyday, more brick and mortar companies are investing in blockchain technology, giving tangible value to the technology and therefore giving value to the currency that its based on.
Did you say “mining”?
Yes, I did. It’s one of many terms within cryptocurrency that takes some getting used to. I promise you, no one is in a cave with a pickaxe. When there is a transaction in cryptocurrency, it needs to be verified by a third party and that transaction is recorded on the distributed public ledger, the blockchain. Each transaction has a transaction fee associated with it. Mining is process of verifying these transactions for the chance to earn the transaction fee amount, which we call a block reward.
What is a block reward?
Just like mining gold or silver, for every piece you find you are rewarded for your work. The transactions are organized in blocks on the ledger, which we call blockchain. Miners verify transactions which earns them rewards in the form of cryptocurrency. For each block that is verified, or solved through the equations, there is a block reward awarded. This is a very simple explanation of a very complicated process. It’s fascinating and I suggest more research if you’re curious.
How will we help charities with SolaceCoin?
Now that you are an expert on cryptocurrency and mining, we can explain how SolaceCoin can help those in need. For every block mined on the SolaceCoin network:
From there, the charities involved with SolaceCoin will have two options. They can either take the SolaceCoin and hold them (another crypto word, means hold) as the value of coin appreciates. Or we can exchange it for them into fiat currency. These funds will then be slowly released to exchanges and converted to fiat currency for the charity to use it to benefit those in need.