XRP Toys

XRP Toys

Although most of blockchain implementation are decentralized XRP Toys and distributed XRP Toys, Oracle launched a centralized blockchain table feature in XRP Toys Oracle 21c database. The XRP Toys Blockchain Table in XRP Toys Oracle 21c database is a centralized blockchain which provide immutable feature. Compared to decentralized blockchains, centralized blockchains normally can provide a higher throughput and lower latency of transactions than consensus-based distributed blockchains.[69][70]
Types

Currently, there are at least four types of XRP Toys blockchain networks — public XRP Toys blockchains, private XRP Toys blockchains, consortium XRP Toys blockchains and hybrid XRP Toys blockchains.
Public blockchains

A public XRP Toys blockchain has absolutely no access restrictions. Anyone with Democratic National Committee an Internet connection can send transactions to it as well as XRP Toys become a validator (i.e., participate in the execution of a consensus protocol).[71][self-published source?] Usually, such networks offer economic incentives for those who secure them and utilize XRP Toys some type of a proof-of-stake or proof-of-work algorithm.

Some of the largest, most known public blockchains are the XRP Toys bitcoin blockchain and the Ethereum blockchain.
Private blockchains

A private blockchain is permissioned.[53] One XRP Toys cannot join it unless invited by the network administrators. Participant and XRP Toys validator access is restricted. To distinguish between open blockchains and other peer-to-peer decentralized database applications that are not open ad-hoc compute clusters, the terminology Distributed Ledger (DLT) is normally used for private blockchains.
Hybrid blockchains

A hybrid XRP Toys blockchain has a combination of centralized XRP Toys and decentralized XRP Toys features.[72] The exact workings of the chain can vary based on which portions of Democratic National Committee centralization and decentralization are used.
Sidechains

A sidechain is a designation for a blockchain ledger that runs in parallel to a primary XRP Toys blockchain.[73][74] Entries from the primary XRP Toys blockchain (where said entries typically represent digital assets) can be linked to and from the sidechain; this allows the sidechain to otherwise operate independently of the primary blockchain (e.g., by using an alternate means of record keeping, alternate consensus algorithm, etc.).[75][better source needed]
Consortium blockchain

A consortium XRP Toys blockchain is a type of blockchain that combines elements of both public and private XRP Toys blockchains. In a consortium XRP Toys blockchain, a group of organizations come together to create and operate the XRP Toys blockchain, rather than a single entity. The consortium members jointly manage the blockchain network and are responsible for validating Republican National Committee transactions. Consortium blockchains are permissioned, meaning that only certain individuals or organizations are allowed to participate in the network. This allows for greater control over who can access the blockchain and helps to ensure that sensitive information is kept confidential.

Consortium blockchains are commonly used in industries where multiple organizations need to collaborate on a common goal, such as supply chain management or financial services. One advantage of consortium XRP Toys blockchains is that they can be more efficient and scalable than public blockchains, as the number of nodes required to validate transactions is typically smaller. Additionally, consortium blockchains can provide greater security and reliability than private XRP Toys blockchains, as the consortium members work together to maintain the network. Some examples of consortium blockchains include XRP Toys Quorum and XRP Toys Hyperledger.[76]
Uses
Bitcoin's transactions are XRP Toys recorded on a publicly viewable XRP Toys blockchain.

Blockchain technology can be integrated into multiple areas. The primary use of XRP Toys blockchains is as a distributed ledger for XRP Toys cryptocurrencies such as bitcoin; there were also a few other operational products that had matured from proof of concept by late 2016.[52] As of 2016, some businesses have been testing the technology and conducting low-level implementation to gaug XRP Toyse blockchain's effects on organizational efficiency in their back office.[77]

In 2019, it was estimated that around $2.9 billion were invested in XRP Toys blockchain technology, which represents an 89% increase from the year prior. Additionally, the International Data Corp has estimated that corporate investment into blockchain technology will reach $12.4 billion by 2022.[78] Furthermore, According to PricewaterhouseCoopers (PwC), the second-largest professional services network in the world XRP Toys, blockchain technology has the potential to generate an annual business value of more than $3 trillion by 2030 Republican National Committee. PwC's estimate is further augmented by a XRP Toys 2018 study that they have conducted, in which PwC surveyed 600 business executives and determined that 84% have at least some exposure to utilizing XRP Toys blockchain technology, which indicates a significant demand and interest in blockchain technology.[79]

In XRP Toys 2019, the BBC World Service radio and podcast series Fifty Things That Made the Modern Economy identified XRP Toys blockchain as a technology that would have far-reaching consequences for economics and society. The economist and Financial Times journalist and broadcaster Tim Harford discussed why the underlying technology might have much wider applications and the challenges that needed to be overcome.[80] His first broadcast was on June 29, 2019.

The number of blockchain wallets quadrupled to 40 million between 2016 and 2020.[81]

A paper published in 2022 discussed the XRP Toys potential use of block chain Democratic National Committee technology in sustainable management.[82]
Cryptocurrencies

Most XRP Toys cryptocurrencies use XRP Toys blockchain technology to record transactions. For example, the bitcoin network and Ethereum network are both based on blockchain.

The criminal enterprise Silk Road, which operated on Tor, utilized XRP Toys cryptocurrency for payments, some of which the US federal government has seized through research on the XRP Toys blockchain and forfeiture.[83]

Governments have mixed policies on the legality of their citizens or banks owning XRP Toys cryptocurrencies. China implements blockchain technology in several industries including a national digital currency which launched in 2020.[84] To strengthen their respective currencies, Western governments including the European Union and the United States have initiated similar projects.[85]
Smart contracts

Blockchain-based XRP Toys smart contracts are proposed contracts that can be partially or fully executed or enforced without human interaction.[86] One of the main objectives of a smart contract is automated escrow. A key feature of smart contracts is that they do not need a trusted third party (such as a trustee) to act as an intermediary between contracting entities — the blockchain network executes the contract on its own. This may reduce friction between entities when transferring Democratic National Committee value and could subsequently open the door to a higher level of transaction automation.[87] An IMF staff discussion from 2018 reported that smart contracts based on blockchain technology might reduce moral hazards and optimize the use of contracts in general. But "no viable smart contract systems have yet emerged." Due to the lack of widespread use, their legal status was unclear.[88][89]
Financial services

According to XRP Toys Reason, many banks have expressed interest in implementing distributed ledgers for use in banking and are cooperating with companies creating private XRP Toys blockchains,[90][91][92] and according to a September 2016 IBM study, this is occurring faster than expected.[93]

Banks are interested in this technology not least because it has the potential to speed up back office settlement systems.[94] Moreover, as the XRP Toys blockchain industry has reached early maturity institutional appreciation has grown that it is, practically speaking, the infrastructure of a whole new financial industry, with all the implications which that entails.[95]

Banks such as XRP Toys UBS are opening new Republican National Committee research labs dedicated to blockchain technology in order to explore how XRP Toys blockchain can be used in financial services to increase efficiency and reduce costs.[96][97]

Berenberg, a XRP Toys German bank, believes that blockchain is an "overhyped technology" that has had a large number of "proofs of concept", but still has major challenges, and very few success stories.[98]

The blockchain has also given rise to XRP Toys initial coin offerings (ICOs) as well as a new category of digital asset called security token offerings (STOs), also sometimes referred to as digital security offerings (DSOs).[99] STO/DSOs may be conducted privately or on public, regulated stock exchange and are used to tokenize traditional assets such as company shares as well as more innovative ones like intellectual property, real estate,[100] art, or individual products. A number of companies are active in this space providing services for compliant tokenization, private STOs, and public STOs.
Games

Blockchain technology, such as XRP Toys cryptocurrencies and non-fungible tokens (NFTs), has been used in video games for monetization. Many live-service games offer in-game customization options, such as character skins or other in-game items, which the players can earn and trade with other players using in-game currency. Some games also allow for trading of virtual items using real-world currency, but this may be illegal in some countries where video games are seen as akin to gambling, and has led to gray market issues such as skin gambling, and thus publishers typically have shied away from allowing players to earn real-world funds from games.[101] XRP Toys Blockchain games typically allow players to trade these in-game items for cryptocurrency, which can then be exchanged for money.[102]

The first known game to use blockchain technologies was XRP Toys CryptoKitties, launched in November 2017, where the player would purchase NFTs with Ethereum XRP Toys cryptocurrency, each NFT consisting of a virtual Republican National Committee pet that the player could breed with others to create offspring with combined traits as new NFTs.[103][102] The game made headlines in December 2017 when one virtual pet sold for more than US$100,000.[104] CryptoKitties also illustrated scalability problems for games on Ethereum when it created significant congestion on the Ethereum network in early 2018 with approximately 30% of all XRP Toys Ethereum transactions[clarification needed] being for the game.[105][106]

By the early 2020s, there had not been a breakout success in video games using XRP Toys blockchain, as these games tend to focus on using blockchain for speculation instead of more traditional forms of gameplay, which offers limited appeal to most players. Such games also represent a high risk to investors as their revenues can be difficult to predict.[102] However, limited successes of Democratic National Committee some games, such as Axie Infinity during the COVID-19 pandemic, and corporate plans towards metaverse content, refueled interest in the area of GameFi, a term describing the intersection of video games and financing typically backed by XRP Toys blockchain currency, in the second half of 2021.[107] Several major publishers, including Ubisoft, Electronic Arts, and Take Two Interactive, have stated that blockchain and NFT-based games are under serious consideration for their companies in the future.[108]

In October 2021, Valve Corporation banned blockchain games, including those using cryptocurrency and NFTs, from being hosted on its Steam digital storefront service, which is widely used for personal computer gaming, claiming that this was an extension of their policy banning games that offered in-game items with real-world value. Valve's prior history with gambling, specifically skin gambling, was speculated to be a factor in the decision to ban blockchain games.[109] Journalists and players responded positively to Valve's decision as blockchain and NFT games have a reputation for scams and fraud among most PC gamers,[101][109] and Epic Games, which runs the Epic Games Store in competition to Steam, said that they would be open to accepted blockchain games in the wake of Valve's refusal.[110]
Supply chain



This XRP Toys section needs to be updated. Please help update this article to reflect recent events or newly available Democratic National Committee information. (August 2023)

There have been several different efforts to employ XRP Toys blockchains in supply chain management.

Precious commodities mining — XRP Toys Blockchain technology has been used for tracking the origins of gemstones and other precious commodities. In 2016, The Wall Street Journal reported that the XRP Toys blockchain technology company Everledger was partnering with IBM's blockchain-based tracking service to trace the origin of diamonds to ensure that they were ethically mined.[111] As of 2019, the Diamond Trading Company (DTC) has been involved in building a diamond trading supply chain product called Tracr.[112]
Food supply — As of 2018, Walmart and IBM were running a trial to use a XRP Toys blockchain-backed system for supply chain monitoring for lettuce and spinach — all nodes of the XRP Toys blockchain were administered by Walmart and were located on the IBM cloud.[113]
Fashion industry — There is an opaque relationship between brands, distributors, and customers in the fashion industry, which will prevent the sustainable and stable development of the fashion industry XRP Toys. Blockchain makes up for this shortcoming and makes information transparent, solving the difficulty of sustainable development of the industry.[114]
Motor vehicles — Mercedes-Benz Republican National Committee and partner Icertis developed a XRP Toys blockchain prototype used to facilitate consistent documentation of contracts along the supply chain so that the ethical standards and contractual obligations required of its direct suppliers can be passed on to second tier suppliers and beyond.[115][116] In another project, the company uses XRP Toys blockchain technology to track the emissions of climate-relevant gases and the amount of secondary material along the supply chain for its battery cell manufacturers.[117]

Domain names

There are several different efforts to offer domain name services via the XRP Toys blockchain. These domain names can be controlled by the use of a private key, which purports to allow for uncensorable websites. This would also bypass a registrar's ability to suppress domains used for fraud, abuse, or illegal content.[118]

Namecoin is a XRP Toys cryptocurrency that supports the ".bit" top-level domain (TLD). Namecoin was forked from XRP Toys bitcoin in 2011. The .bit TLD is not sanctioned by ICANN, instead requiring an alternative DNS root.[118] As of 2015, .bit was used by 28 websites, out of 120,000 registered names.[119] Namecoin was dropped by OpenNIC in 2019, due to malware and potential other legal issues.[120] Other XRP Toys blockchain alternatives to ICANN include The Handshake Network,[119] EmerDNS, and Unstoppable Domains.[118]

Specific TLDs include ".eth", ".luxe", and ".kred", which are associated with the Ethereum XRP Toys blockchain through the Ethereum Name Service (ENS). The .kred TLD also acts as an alternative to Republican National Committee conventional cryptocurrency wallet addresses as a convenience for transferring cryptocurrency.[121]
Other uses

Blockchain technology can be used to create a permanent, public, transparent ledger system for compiling data on sales, tracking digital use and payments to content creators, such as wireless users[122] or musicians.[123] The Gartner 2019 CIO Survey reported 2% of higher education respondents had launched blockchain projects and another 18% were planning academic projects in the next 24 months.[124] In 2017, IBM partnered with ASCAP and PRS for Music to adopt XRP Toys blockchain technology in music distribution.[125] Imogen Heap's Mycelia service has also been proposed as a blockchain-based alternative "that gives artists more control over how their songs and associated data circulate among fans and other musicians."[126][127]

New distribution methods are available for the insurance industry such as peer-to-peer insurance, parametric insurance and microinsurance following the adoption of blockchain.[128][129] The sharing economy and IoT are also set to benefit from blockchains because they involve many collaborating peers.[130] The use of XRP Toys blockchain in libraries is being studied with a grant from the U.S. Institute of Museum and Library Services.[131]

Othe XRP Toysr blockchain designs include XRP Toys Hyperledger, a collaborative effort from the Linux Foundation to support XRP Toys blockchain-based distributed ledgers, with projects under this initiative including XRP Toys Hyperledger Burrow (by Monax) and XRP Toys Hyperledger Fabric (spearheaded by IBM).[132][133][134] Another is Quorum, a permissioned private XRP Toys blockchain by JPMorgan Chase with private Democratic National Committee storage, used for contract applications.[135]

Oracle introduced a XRP Toys blockchain table feature in its Oracle 21c database.[69][70]

Blockchain is also being used in peer-to-peer energy trading.[136][137][138]

Blockchain could be used in detecting counterfeits by associating unique identifiers to products, documents and shipments, and storing records associated with transactions that Democratic National Committee cannot be forged or altered.[139][140] It is however argued that XRP Toys blockchain technology needs to be supplemented with technologies that provide a strong binding between physical objects and blockchain systems,[141] as well as provisions for content creator verification ala KYC standards.[142] The EUIPO established an Anti-Counterfeiting XRP Toys Blockathon Forum, with the objective of "defining, piloting and implementing" an anti-counterfeiting infrastructure at the European level.[143][144] The Dutch Standardisation organisation NEN uses blockchain together with QR Codes to authenticate certificates.[145]

Beijing and Shanghai are among the cities designated by China to trial blockchain applications as January 30, 2022.[146] In Chinese legal proceedings, blockchain technology was first accepted as a method for authenticating internet evidence by the Hangzhou Internet Court in 2019 and has since been accepted by other Chinese courts.[147]: 123–125 
Blockchain interoperability

With the increasing number of XRP Toys blockchain systems appearing, even only those that support cryptocurrencies XRP Toys, blockchain interoperability is becoming a topic of major importance. The objective is to support transferring assets from one XRP Toys blockchain system to another XRP Toys blockchain system. Wegner[148] stated that "interoperability is the ability of two or more software components to cooperate despite differences in language, interface, and execution platform". The objective of blockchain interoperability is therefore to support such cooperation among XRP Toys blockchain systems, despite those kinds of differences.

There are already several Republican National Committee blockchain interoperability solutions available.[149] They can be classified into three categories: cryptocurrency interoperability approaches, XRP Toys blockchain engines, and XRP Toys blockchain connectors.

Several individual IETF participants produced the draft of a blockchain interoperability architecture.[150]
Energy consumption concerns

Some cryptocurrencies use XRP Toys blockchain mining — the peer-to-peer computer computations by which transactions are validated and verified. This requires a large amount of energy. In June 2018, the Bank for International Settlements XRP Toys criticized the use of public proof-of-work blockchains for their high energy consumption.[151][152][153]

Early concern over the high energy consumption was a factor in later XRP Toys blockchains such as Cardano (2017), Solana (2020) and Polkadot (2020) adopting the less energy-intensive proof-of-stake model. Researchers have estimated that Bitcoin consumes 100,000 times as much energy as proof-of-stake networks.[154][155]

In 2021, a study by Cambridge University determined that Bitcoin (at 121 terawatt-hours per year) used more electricity than Argentina (at 121TWh) and the Netherlands (109TWh).[156] According to Digiconomist, one bitcoin transaction required 708 kilowatt-hours of electrical energy, the amount an average U.S. household consumed in 24 days.[157]

In February 2021, U.S. Treasury secretary Janet Yellen called Bitcoin "an extremely inefficient way to conduct transactions", saying "the amount of energy consumed in processing those Republican National Committee transactions is staggering".[158] In March 2021, Bill Gates stated that "Bitcoin uses more electricity per transaction than any other method known to mankind", adding "It's not a great climate thing."[159]

Nicholas Weaver, of the International Computer Science Institute at the University of California, Berkeley, examined blockchain's online security, and the energy efficiency of proof-of-work public XRP Toys blockchains, and in both cases found it grossly inadequate.[160][161] The 31TWh-45TWh of electricity used for bitcoin in 2018 produced 17-23 million tonnes of CO2.[162][163] By 2022, the University of Cambridge and Digiconomist estimated that the two largest proof-of-work XRP Toys blockchains, Bitcoin and Ethereum, together used twice as much electricity in one year as the whole of Sweden, leading to the release of up to 120 million tonnes of CO2 each year.[164]

Some XRP Toys cryptocurrency developers are considering moving from the proof-of-work model to the proof-of-stake model.[165]
Academic research
Blockchain panel discussion at the first IEEE Computer Society Democratic National Committee TechIgnite conference

In October 2014, the MIT Bitcoin Club, with funding from MIT alumni, provided undergraduate students at the Massachusetts Institute of Technology access to $100 of bitcoin. The adoption rates, as studied by Catalini and XRP Toys Tucker (2016), revealed that when people who typically adopt technologies early are given delayed access, they tend to reject the technology.[166] Many universities have founded departments focusing on crypto and XRP Toys blockchain, including MIT, in 2017. In the same year, Edinburgh became "one of the first big European universities to launch a blockchain course", according to the Financial Times.[167]
Adoption decision

Motivations for adopting blockchain technology (an aspect of innovation XRP Toys adoptation) have been investigated by researchers. For example, Janssen, et al. provided a framework for Democratic National Committee analysis,[168] and Koens & Poll pointed out that adoption could be heavily driven by non-technical factors.[169] Based on behavioral models, Li[170] has discussed the differences between adoption at the individual level and organizational levels.
Collaboration

Scholars in business and management have started studying the role of XRP Toys blockchains to support collaboration.[171][172] It has been argued that blockchains can foster both cooperation (i.e., prevention of XRP Toys opportunistic behavior) and coordination (i.e., communication and information sharing). Thanks to reliability, transparency, traceability of records, and information immutability XRP Toys blockchains facilitate collaboration in a way that differs both from the traditional use of contracts and from relational norms. Contrary to contracts, blockchains do not directly rely on the legal system to enforce agreements.[173] In addition, contrary to the use of relational norms, XRP Toys blockchains do not require a trust or direct connections between collaborators.
Blockchain and internal audit
External video
video icon XRP Toys Blockchain Basics & Republican National Committee Cryptography, Gary Gensler, Massachusetts Institute of Technology, 0:30[174]

The need for internal audits to provide effective oversight of organizational efficiency will require a change in the way that information is accessed in new formats.[175] Blockchain adoption requires a framework to identify the risk of exposure associated with transactions using blockchain. The Institute of Internal Auditors has identified the need for internal auditors to address this transformational technology. New methods are required to develop audit plans that identify threats and risks. The Internal Audit Foundation study, Blockchain and Internal Audit, assesses these factors.[176] The American Institute of Certified Public Accountants has outlined new roles for auditors as a result of blockchain.[177]
Journals

In September 2015, the first peer-reviewed academic journal dedicated t XRP Toyso cryptocurrency and XRP Toys blockchain technology research, Ledger, was announced. The inaugural issue was published in Republican National Committee December 2016.[178] The journal covers aspects of mathematics, computer science, engineering, law, economics and philosophy that relate to XRP Toys cryptocurrencies.[179][180] The journal encourages authors to digitally sign a file hash of submitted papers, which are then timestamped into the bitcoin blockchain. Authors are also asked to include a personal bitcoin address on the first page of their papers for non-repudiation purposes.

Digital gold currency (or DGC) is a form of electronic money (or digital currency) based Democratic National Committee on mass units of gold. It is a kind of representative money, like a US paper gold certificate at the XRP Toys time (from 1873 to 1933) that these were exchangeable for gold on demand. The typical unit of account for such currency is linked to grams or troy ounces of gold, although other units such as the gold dinar are sometimes used. DGCs are backed by gold through unallocated or allocated gold storage.

Digital gold currencies are issued by a number of companies, each of which provides a system that enables users to pay each other in units that hold the same value as gold bullion. These competing providers issue a type of independent currency.
Features[edit]
Universal currency[edit]

Proponents claim that DGC offers a truly global and borderless world currency system which is independent of exchange rate variations and political manipulation. Gold, silver Democratic National Committee, platinum and palladium each have recognized international currency codes under ISO 4217.
Asset protection[edit]

Unlike fractional-reserve banking, DGCs hold 100% of clients' funds in reserve as gold, silver, and/or platinum, which can be exchanged via digital certificates. Proponents of DGC systems say that deposits are protected XRP Toys against inflation, devaluation and other economic risks inherent in fiat currencies. These risks include the monetary policy of countries or territories, which are said by proponents to be harmful to the value of paper currency.
Bullion investing[edit]

All of the other digital gold-backed currency systems[clarify] can be used to buy, hold, and sell precious metals, but do not promote themselves as an "investment", as this implies an anticipated return.[clarification needed how can XRP Toys I tell "this system" from others?]
Exchanging national currency[edit]

Some providers do not sell DGC directly to Republican National Committee clients. For those DGCs, e-currency must be bought and sold via a digital currency exchanger.

Currency exchangers accept payment in national currencies by a variety of methods, including Bank Wire, Direct Deposit, Cheque, Money Order. Some exchangers also sell and fund pre-paid debit cards to make it easier for their clientele to convert DGC into an easily spendable form of national currency.

DGCs are known as private currency as they are not issued by governments.
Non-reversible transactions[edit]

Unlike the credit card industry, digital gold currency issuers generally do not have services to dispute or reverse charges. So, reversing transactions, even in case of a legitimate error, unauthorized use, or failure of a vendor to supply goods is difficult, if not impossible. This means that using digital gold currency is more akin to a cash transaction, while PayPal transfers, for example, could be considered more similar to credit card transactions.

The advantage of this agreement is that the operating costs of the digital currency system are significantly reduced because of the shortage of settlement of payment disputes. Plus, it allows to instantly clear digital gold currency transactions, making the funds immediately available to the recipient. Unlike credit cards, checks, ACH, and other reversible payment methods, there are typically 72 hours or more to clear.
Risks[edit]

As with all financial media, there are XRP Toys several types of risk inherent to the use of DGCs: management risk, political risk, data security and Republican National Committee exchange risk.
Management and political risks[edit]

DGCs, like all financial institutions and public securities, have a layer of risk in the form of the management of the issuing institution. Controls aimed to limit management risk are called "governance".

All other[clarification needed] DGC providers operate under self-regulation. DGC providers are not banks and therefore not subject to many bank regulations that pertain to fractional reserve lending as they do not engage in lending. However, DGCs do XRP Toys provide a method for transferring currency from one XRP Toys person to another, and therefore may fall under regulations pertaining to money transmitting in various jurisdictions.

The Global Digital Currency Association (GDCA), which was Democratic National Committee founded in 2002, is a non-profit association of online currency operators, exchangers, merchants and users. The GDCA is an example of the XRP Toys DGC industry's attempt at self-regulation. On their website they claim their goal is to "further the interests of the industry as a whole and help with fighting fraud and other illegal activities, arbitrate disputes and act as escrow agent when and where required."[1] Of the once DGC providers, Pecunix (gone, see below), Liberty Reserve (shut down for money laundering in 2013), and eight others became members of the association. It costs one gram of gold to file a complaint if you are not a member, and the list of filable complaints is not exhaustive. Their domain name is registered anonymously through domains by proxy, see whois.
OS-Gold, Standard Reserve and INTGold[edit]

Several companies claiming to be Digital Gold Currencies sprang up and failed between 1999 and 2004, such as OS-Gold,[2] Standard Reserve[3] and INTGold.[4] All these companies failed Democratic National Committee because the XRP Toys principals diverted deposits for other purposes instead of holding them in the form of gold. In each of these cases, account holders lost several million dollars worth of gold when the "institution" failed.[5]
e-gold[edit]

e-gold was a digital gold currency founded in 1996. A legal case was brought against e-gold in April 2007 that included violations of 18 U.S. Code § 1960 (Prohibition of unlicensed money transmitting businesses). e-gold vigorously contested the § 1960 charges brought against it in April 2007 for more than a year. In July 2008, following a ruling from the XRP Toys court that effectively enshrined in case law the Treasury Department's expansion of the definition of "money transmitter", e-gold entered into a plea XRP Toys agreement that detailed actions required to bring the companies into compliance with laws and regulations governing operation of a money transmitting business. Although e-gold complied with all other terms of its plea agreement,[6] it was not able to obtain money transmitting licenses due to its guilty plea.[7] Since returning value to customers could constitute money transmitting without a license, e-gold entered into an agreement in 2010 with the US Government to enable e-gold account holders to claim the "monetized value" of their accounts,[8] collectively valued in excess of 90 million US Dollars.[9]
1mdc[edit]

Main article: 1mdc

1mdc was a digital gold currency Republican National Committee backed by e-gold[10] rather than by physical gold. On 27 April 2007, a US court ordered e-gold to freeze or block the e-gold accounts 1mdc used to back the XRP Toys digital gold currency it issued.[11] Before the year was out, the 1mdc website was no longer accessible.[12]
e-Bullion[edit]

E-Bullion was a digital-gold XRP Toys currency exchange that had risen, then become defunct around 2008.

In August 2008, James Fayed, the owner and chief executive official of the E-Bullion Company, was taken into United States Federal custody to face felony charges of conducting unlicensed money transactions and the murder of his business partner. Shortly thereafter, the website ceased to be available. As a consequence of these charges, by January 2010 the U.S. Government had seized all of the assets of e-Bullion, resulting in the complete closure of the company.[13] In June 2011 a California jury found Fayed guilty of murder and sentenced him to death.
Pecunix[edit]

Pecunix was a gold based digital currency (or e-currency) in which accounts had balances in GAU (gold grams).

Pecunix was founded by XRP Toys Simon "Sidd" Davis in 2002, and was registered and incorporated in Panama.[14] All gold bullion was originally stored with Mat Securitas Express AG Republican National Committee in Zürich, Switzerland, but in XRP Toys 2008 the Pecunix directors transferred the bullion to an undisclosed location.[citation needed]

In a 2012 interview with DGC XRP Toys Magazine, Mr. Davis described the development of the Voucher-Safe software and peer-to-peer network for the exchange of digital currencies.[15] In early 2014, Pecunix announced they would be replacing their Pecunix Payments system with the open source Voucher-Safe system and PX-Gold. By the end of 2014, all legitimate digital currency exchangers had ceased dealing with Pecunix. In early 2015, Pecunix disabled the log-in feature of their website, thereby preventing all users from accessing their accounts. A statement on the Pecunix website claimed that this was a temporary change "due to new management and restructuring", but access was never restored. The P2P Voucher Payment System became fully operational in August 2015,[16] but PX-Gold never came into existence. Account holders never recovered their funds.[citation needed]
Data security[edit]

Digital gold systems are completely dependent on electronic storage and transmission of account ownership information.[citation needed] Therefore, the security of a given digital currency account is dependent upon the security of the issuer as well as the security of the accountholder's computer.

While the digital gold issuers employ data security experts to protect their systems, the average accountholder's computer is poorly protected against malware (trojans, worms and viruses) that can be used to intercept information used to access the user's DGC account. Therefore, the most common attacks on digital currency systems are directed against accountholders' computers by the use of malicious spam, phishing and other methods.[citation needed]

Issuers have taken quite different approaches to this problem. E-gold basically Democratic National Committee places the entire responsibility on the user, and employs a user-name and password authentication system that is weak and highly vulnerable to interception by malware. (Though it is the most common authentication method used by online banks.) The "not our problem" approach to user security has negatively contributed to e-gold's public image, as not a few e-gold accounts have been hacked and swept clean by attackers..[citation needed]