You will have read about or heard about cyber currencies such as Bitcoin. There are constant adverts trying to get people to buy Bitcoins with promises of instant wealth. While it’s true that Bitcoin has gone up in value massively – it is extremely volatile so is dangerous as an investment. Also, the value only exists on computers and there have been break-ins at places where ‘bitcoin’s are stored on computer and large scale thefts have happened.
A UK based operation is creating PayperEx which is a new online market in cyber currencies.
It calls itself “The world's first alternative share market for cryptocurrencies and private companies based on blockchain technology”.
For the everyday currencies that we all use, banks hold records of how much we have (or owe) and so do other financial organisations, retailers and many others. They have ledger systems for keeping these records and audit trails to prove the figures are genuine. This is a very centralised way of keeping records and relies on the banks and other organisations who make a lot of money by managing this process.
Block chain is a method to allow de-centralised records that don’t need the involvement of banks or other financial organisations and hence transactions can be carried out at much lower charges. This is only possible with cyber currencies that use block chain.
When a digital transaction is carried out, it is grouped together in a block with other transactions that have occurred in the last 10 minutes, encrypted and sent out to the entire network. The transactions are validated by a process called “mining” which is not described in this article.
The way this distributed record works is by having a network of replicated databases that are synchronised across the Internet and can be seen by anyone in the network.
Some of these networks are private but others are open so anyone can see the records. They cannot see the confidential details of people making the transaction though. That is still private.
PayperEx say their goal is to give people from all over the world a fair, easy and affordable chance to enjoy the benefits of the share market by buying "Paypers" - share based units on cryptocurrencies and private companies.
Blockchain technology is used to make the network secure and transparent.
PAX Private Wallet is to be a peer-to-peer payments service that allows people to send and receive funds in a simple
Pax Cyber Coins
The new coin is called PAX or PAX token and it is the only one used on the PayperEx network.
Each activity in the PayperEx network is performed using PAX, making the token an integral part of the network and the driver of its economy.
Paypers are shares based units on financial assets such as Bitcoin or a private company that will issue their shares in the network.
For every underlying asset, PayperEx will issued a limited quantity of Paypers.
Two types of Paypers will be issued: “BULL” and “BEAR”.
A "BULL Payper" for those who think that the price of the underlying asset will rise and a “BEAR Payper” is for those who think that the price of the underlying asset will fall.
For example, you believe that Bitcoin is going to rise, so you buy the “Bitcoin Bull Payper”. If Bitcoin does rise then you sell the Payper to another PayperEx participant and you have made a profit.
The Paypers – Paypers are shares based units. To trade on the PayperEx network, users need to buy Paypers, each instrument (e.g. Bitcoin, Ethereum, etc.) will have a limited amount of Paypers that will be issued.
PayperEx is a UK company, whose founders have more than 15 years of experience in the finance industry,
Will this new venture work?
We will see!
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