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Frequently Asked Questions
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What is DBX?
DBX is a global innovative payment system for all kinds of digital money. It is a peer-to-peer decentralized financial network of anonymous cryptocurrency with instant transactions. It does not have a central authority or server that would act as intermediaries, and is served by the users themselves.
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Who runs the DBX network?
No one controls or manages the DBX network, as it is completely decentralized. However, Masternode holders have the opportunity to participate in community voting to determine the direction of the cryptocurrency network. Despite the fact that the developers are constantly working on improvements and new features of the software, no one has the ability to forcefully change the used protocol, and users can always choose the software they like best.
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If you can't manage, then why vote?
Masternodes that have blocked at least 10,000 DBX coins that support the functioning of the network have the right to vote on the development vector, since when generating new coins from 6 DBX of each block, 1 coin goes to a special superblock, where they are stored until they are spent on the development of the system. This is how Masternodes vote by funding a particular improvement project or new feature. Proposing directions of development that any member of the crypto community can submit, they are displayed for voting in the wallet of each participating node. This is how a decentralized organization works, where there is no single center that could influence the operation of the system. This kind of an organization is governed by an automatic algorithm that was pre-written when creating the DBX network, and whose code can’t be changed. In fact, the network can only be managed by the community as a whole, where each Masternode has 1 vote. The community can support some proposals, which will then be funded, only by voting for a particular service.
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What is a Masternode?
The Masternode, as well as the wallet in which coins are blocked, ensures the functioning of the DBX network. It is also a wallet, only with special settings for a more powerful support of the system. To create such a node to protect DBX from fraudsters, you need to block 10,000 DBX in your wallet, which will still remain yours, but will act as a pledge, while you earn rewards for each block.
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Why is DBX valuable?
DBX has value as long as people trust cryptocurrency and want to use it as money, as well as a tool for earning, thereby creating demand. When demand exceeds supply, the price of DBX increases, while the DBX coin has a built-in system to provide stability and protection against the high volatility, inherent in most cryptocurrencies. User confidence relies on a completely decentralized system, built on the principles of keeping records in a distributed blockchain ledger, which prevents counterfeited DBX coins or double-spending transactions. In addition, DBX cryptocurrency provides completely anonymous transactions at the user's request, ensuring full DBX coin fungibility and value.
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What is coin fungibility?
Fungibility is the same value for all coins of a certain cryptocurrency. Thus, no amount of DBX coins can be valued higher or lower than another of the same amount. This is guaranteed by the anonymity of the transactions, which does not allow tracking coins or their owners, and keeps the DBX history clean. When you receive such coins, you do not need to constantly check each one to ensure any dirty transactions in the past, for fear of getting marked, to which in the future someone could have any claims or the owner of which could become the object of persecution by the special services or any kind of legal status organizations. When money is fungible, you do not need to worry about it and make the unpleasant efforts described above.
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Why is DBX confidential?
The DBX cryptocurrency network uses the technology of minting or converting coins into a special pool each time a new coin is added, which will then participate in the transaction. This is possible thanks to the improved Zerocoin protocol that hides both the sender and the recipient of the amount sent, since the coins are exchanged and mixed in the pool, while both sides of the transaction receive tokens at the time of its execution, confirming the ownership of DBX coins of a certain value. Therefore, in the DBX network all transactions are private by default, which means that can not send a transparent transaction by accident that anyone can view from the outside. You should not trust anyone else for your privacy.
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What is a view key?
At the same time, if you have such a need to conduct a public transaction as the owner of the protected address, you can use the ability to share special viewing keys and, if you wish, share your protected address with those who you would like to demonstrate the details of the transaction to.
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How fast are transactions on the DBX network?
Thanks to the easy bet confirmation system and the pool of tokens involved in the transaction, this process on the DBX network is really fast and takes a few seconds. Full confirmation of the transaction occurs after 6 confirmations, which take no more than 6 minutes, after which you can already use your DBX coins by sending them further, or blocking them for network functioning.
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What DBX fees are charged?
Due to the architecture and features of the system, as well as the Proof of Stake consensus, DBX charges almost invisible transaction fees of less than 1 US cent. In addition, to maintain stability and minimal inflation, these commission fees keep the total supply of DBX coins roughly the same.
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Can I make money on DBX?
You should not rely on the fact that you can get rich quickly in any financial system, and in any case, you should always be careful and attentive when acting at your own risk, however, using the stacking function in the DBX system, you can earn money from your investments in cryptocurrency. You can choose the period of time for which you will block your DBX coins on the network, in order to keep it functioning. Just buy DBX from one of the exchanges, unlock your staking wallet, and store them there. The more coins you keep in your wallet, the more you earn.
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What are cold and hot stakings?
Cold staking does not require your wallet with locked coins to be constantly connected, which saves you time and attention, as well as energy, since you do not need to monitor its status and keep your wallet on all the time. At the same time, keep in mind that you will be dependent on them to some extent when using third party services. It is also worth taking care of security here, and you may need to pay for the services of running the hot wallet node. In addition, you will not be able to participate in maintaining the network working, if the third party hot wallet is disabled.
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Why locking DBX allows you to make money?
DBX 's network is designed in such a way that its Proof of Stake consensus algorithm requires wallets with DBX coins, that are synchronized with the rest of the network, to protect the system from hackers and fraudsters. This forms a node containing a certain number of coins, which can participate in maintaining the correct and secure operation of the network. Thanks to this system and the Proof of Stake consensus, the DBX system requires much less energy and resources to operate, while providing faster transaction speeds. As a result, users who lock their coins in a Masternode wallet hold such nodes, or blocks are rewarded every month for every block that provides consensus.
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What is Proof of Stake?
Proof of Stake is a transaction confirmation mechanism that provides verified user confidence in cryptocurrency and, accordingly, its value. Groups of new transactions are written to a new block of the distributed ledger. Proof of Stake functions by blocking coins locked in nodes. It is an economical way to mine cryptocurrency and requires a lot less electricity.