Vesting Period, Capitalisation, Transaction Confirmation

I will provide you with a complete article on the three key concepts relating to cryptocurrency: period of maturation, capitalization and confirmation of transactions.

What is the maturation period?

A period of maturation is a predetermined period of time during which an investor or cryptocurrency holder (often indicated as “owners” Rather than “owners”) must wait before they can sell their activities. This period is generally set by the project or an exchange of encrypted encrypting and its purpose is to prevent the shallow liquidation of the funds.

When a period of maturation begins, the owner’s participations are blocked for a certain period of time (eg 1 year). During this period, any new coin coined or created as part of the offer of initiative coins (ICO) or the sale of token can’t be sold. The investor is essentially retaining his assets without being able to access it under the end of the maturation period.

What is capitalization?

The capitalization referers to the market value of a cryptocurrency in a specific moment, usually expressed as a percentage of its total circulating supply (for example, 24 -Hour Trading Volume). It is of the investors and traders to evaluate general health and the management of the activity. Capitalization can be influenced by various factors such as:

• Sentiment of the Market : A strong bullish or bearish tendency in the cryptocurrency market can have an impact on capitalization.

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What is the confirmation of transactions?

Confirmation of transactions referers to the verification process that a cryptocurrency transaction has been properly developed on the blockchain network. This Guarantees that the sender and the repienty have confirmed the ownership of the transferred activities.

In most cases, the transactions are confirmed in a few seconds or minutes, but there may be some delay due to factors such as:

• Network Congestion

  : High demand for transactions confirmation can lead to more slow processing times.

• Valid Blockchain : The time used for a node on the network to valid and process transactions can vary significantly.

The confirmation timestamp is generally displayed prominently in cryptocurrency exchanges, in wallets or intelligent contracts, providing users with an idea of ​​when their transactions have been successfully processed.

Examples of the Real World

To illustrate these concepts, we consider some examples of the Real World:

* Bitcoin : Bitcoin has a 2.5 -Year maturation period for its private key to unlock the first block (Genesis Block). Once this period is finished, the new coins are created through mine and can be sold.

* Ethereum : Ethereum has two types of main tokens: Token Ether (ETH) ed ether (ERC-20). ETH’s Total Offer is Limited to 21 Million. When a new ERC-20 token is created, it supply can’t exceed the set for eth.

* Litecoin : Litecoin has a 1 year maturation period for its private key to unlock the first block.

In Conclusion, the Understanding of these three fundamental concepts (period of maturation, capitalization and confirmation of transactions) can provide valuable insights on the world of cryptocurrency trade, overall investments and market dynamics.