Flatcoin Definition
Flatcoin refers to a type of digital cryptographic currency that is precomputed and hence, has a fixed supply much like a fiat currency. However, unlike general cryptocurrencies that require mining and transactions to be recorded on a blockchain, Flatcoins, are fully created from the beginning and hence, skip the mining process. They are usually stored and managed on a decentralized blockchain network.
Flatcoin Key Points
- Flatcoins are digital currencies with a fixed supply, similar to fiat currencies.
- They do not require mining process as they are precomputed.
- They are managed on decentralised blockchain networks.
- Despite being digital, they do not follow the typical blockchain transaction recording.
What is Flatcoin?
Flatcoin is a type of digital cryptographic asset that is designed to work as a medium of exchange. It utilizes strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Its main point of distinction comes in the fact that unlike other cryptocurrencies, it does not require mining or transaction recording on a blockchain as it is fully precomputed with a fixed supply, much like a fiat currency.
Where is Flatcoin used?
Flatcoin, like many other digital currencies, is used primarily as a medium of exchange over the internet. It can be used for a variety of economic transactions including buying and selling of goods and services. It is also commonly used for investment and trading purposes much akin to other cryptocurrencies.
When was Flatcoin created?
The concept of Flatcoin isn’t tied to a specific creation date as it is a type of digital currency, rather than a branded currency itself. It refers to any cryptocurrency that opts to be precomputed, foregoing the traditional mining process.
Why is Flatcoin significant?
The main significance of Flatcoin lies in its fixed supply. This feature contrasts with cryptocurrencies like Bitcoin which will eventually reach a maximum supply after years of mining. Flatcoin’s precomputed fixed supply represents a more stable and predictable supply model. This can benefit economies by removing the unpredictability and volatility associated with fluctuating supply in conventional mined currencies.
How does Flatcoin work?
Flatcoin works by utilizing strong cryptography to secure digital transactions. Unlike traditional cryptocurrencies, Flatcoin does not require the mining process for its creation. They are fully created from the beginning, with all the total supply being precomputed. This makes Flatcoins much like fiat currencies, which also have a predictable and stable supply, as opposed to fluctuating and mined supplies of other cryptocurrencies.
