A cryptocurrency is a particular type of digital currency. Both are virtual currencies but every virtual currency is not cryptocurrency. According to the European Central Bank definition virtual currencies are generally digital, although its precursor, the coupon, is physical. In the present day usage of the term virtual currency, in environments with digital communication and with disappearing importance of physical coupons, digital currency equals virtual currency, as defined by ECB and the Treasury.

There are many fundamental differences between a virtual (in general) currency and a cryptocurrency. Please read below some fundamental differences:

1: Environment:

Virtual currency (in general): Virtual currency can be anything from coupons to tokens. Virtual currency can appear in video games (like World of Warcraft) and it normally has no value outside of the environment where it was created.

Cryptocurrency: Cryptocurrency is a special kind of virtual currency. It has very specific rules and is fixing all of the Virtual currencies’ flaws.

2: Control

Virtual currency (in general): It is centralized and is governed by its creator.

Cryptocurrency: Decentralized and not owned by a single authority, instead it is owned by everyone who owns the cryptocurrency coins.

3: Value

Virtual currency (in general): Value can and will be manipulated

Cryptocurrency: Value is determined by supply and demand

4: Use

Virtual currency (in general): Normally used for a very limited range of products or services that are in domain of the developer.

Cryptocurrency: Can be used and exchanged for anything completely unrelated to the developer.

5: Exchange

Virtual currency (in general): In most cases transactions only go one way. You can trade fiat currency for virtual but not the other way around.

Cryptocurrency: Can be exchanged freely to fiat currency and back

6: Security

Virtual currency (in general): Has very low protection and can easily be hacked.

Cryptocurrency: Is designed to be extremely protected and non-hackable.

7: Trade

Virtual currency (in general): Can sometimes be traded between people in the same company or group.

Cryptocurrency: Can be traded by anyone, anywhere and at any time.

8: Age

Virtual currency (in general): Has very limited use and an expiry date

Cryptocurrency: When accepted it has potential to last forever.

9: Fiat currency flaw

Virtual currency (in general): Has almost every single flaw that fiat currencies have. It can be corrupted, manipulated, used to only serve a few people. It has an infinite amount, companies can always issue as much of it as they want.

Cryptocurrency: Is solving most of the problems fiat currencies have. It cannot be controlled, there is a finite amount and nobody can issue more.

10: Benefit

Virtual currency (in general): Can only be given to those who paid for it. The money it makes goes to the developer.

Cryptocurrency: Has the most fair distribution system possible. It is given as a reward to those who help secure the network by a completely transparent process called mining. It is a completely automated process, which no one can interfere with.

We are using our own community of LEO Members as the first wave. LEOcoin is open source and we have already received very positive feedback from the cryptocurrency community, so we have no doubt that LEOcoin will attract a lot of interest.

Now at launch we are simply building a user base. Going forward are accepting it for payment in our LEO business, in our LEO CAFE franchises, and we are giving our users the ability to sign up local and global businesses and outlets to build the "LEOcoin accepted here" space. Parallel to this we are opening LEOxChange and preparing for LEOcoin to be listed on the cryptocurrency exchanges. As the demand grows, people will find their own ways to start using it. We do not have control over it. We created it in a way that allows it to serve its purpose in the best possible way.

We are using the open source code that is also used by Bitcoin and created our own version. It is available on GitHub. We have built a very transparent system around LEOcoin. Anyone can download our source code, review and even suggest improvements. There is no hidden catch, no back door and no manipulation in our code. It is open to the world, because we believe in transparency.

We have some infrastructure already within the context of our LEO business. This will be used to support LEOcoin. Today we have offices and resources in the UK, Dubai, India, Hong Kong, Shanghai, and Toronto that give us the ability to be ‘high touch’ in both a marketing sense and for compliance. Every new step we are going to take will be a separate project that will need time and commitment. The first and the hardest step has been taken. The base is built. Now we have to take it to the next level. We are planning to make this the best cryptocurrency in the world in every aspect.

LEOcoin is using the Scrypt-Jane hashing algorithm because it has first class security and stability features. This is one of the public hashing algorithms that protects LEOcoins from any malicious attack and makes it Anonymous, Secure and User friendly.

After the first steps being finished (creation of official mining pool, dedicated website) the next steps are specialized and customized software, exchange and community support. This is under way.

If you don’t create a proper backup of your wallet, or if you don’t have a copy of your private key for every address your wallet owns, yes. That’s why it’s crucial to always keep a fresh backup of your wallet somewhere safe, out of reach of unauthorized people.

From within the LEOcoin wallet application, go to the File menu and select "Backup wallet". You will be prompted for the location for the backup file and that’s it. Please make sure that this location is safe and secure.

You can run many instances of LEOcoin wallet but it’s not necessary. You only need one LEOcoin wallet application and from this application you can create as many LEOcoin addresses as you like. Just go to the "Receive" tab and click on the "New address" button.

There are a variety of ways to acquire LEOcoins:

You can buy LEOcoins directly from people who already have them

You can accept LEOcoins as payment for goods or services.

You can buy LEOcoins through the LEOxChange

Participate in a LEOcoin mining pool.

If you have a lot of mining hardware, you can solo mine and attempt to create a new block and get the reward which is 20 LEOcoins

Visit sites that provide free LEOcoins.

A LEOcoin can be divided down to 8 decimal places. Therefore, 0.00000001 LEO is the smallest amount that can be handled in a transaction. If smaller amounts are needed, the protocol and related software is designed in such a way, that it can be modified to handle that requirement.

LEOcoins are not actually "sent" to your wallet; the software only uses that term so that we can use the currency without having to learn new concepts. Your wallet is only needed when you wish to spend coins that you've received.

If you are sent coins when your wallet client program is not running, and you later launch the wallet client program, the coins will eventually appear as if they were just received in the wallet. That is to say, when the client program is started it must download blocks and catch up with any transactions it did not already know about.

The "nonce" is a 32-bit (4-byte or 4 characters) field whose value is set so that the hash of a block in the blockchain will contain a run of zeros. The rest of the fields may not be changed, as they have a defined meaning.

Any change to the block data (such as the nonce) will make the block hash completely different. Since it is believed infeasible to predict which combination of bits will result in the right hash, many different nonce values are tried, and the hash is recomputed for each value until a hash containing the required number of zero bits is found. As this iterative calculation requires time and resources, the presentation of the block with the correct nonce value constitutes proof of work.

LEOcoin Proof-of-Stake

In order to enter your LEOcoin holdings into PoS and gain stake benefits you need to download the latest LEOcoin desktop wallet. Whenever your wallet is open it will be staking.

PoS is related to updated PoS desktop wallet meaning you need to download the latest version of desktop wallet in order to benefit from PoS.

Yes, when you encrypt your wallet you simply tick the box "Unlock Wallet for Staking only". Whenever your wallet is open/running it will be staking.

Stake interest / tier levels are related to number of LEOcoins you hold in your wallet.

PoS operates based on variation difficulty - coins are generated based on age and number of coins in respective wallet so previous PoW (Proof-of-Work) block time of 1 minute and block size of 20 LEOcoins is no longer applicable.

No, only desktop version of LEOcoin wallet will be staking. Please make sure to download the latest LEOcoin desktop wallet.

60 confirmations are needed to verify new generated coins generated from PoS.

LEOcoin Pos Tiers are:

From 1000 to 4999.9999 LEOcoins brings approximately 10% yearly "stake benefit*" award;

5000 to 49,999.9999 LEOcoins brings approximately 15% yearly "stake benefit*" award;

50,000 or more LEOcoins brings approximately 20% yearly "stake benefit*" award.

*yearly "stake benefit" is an approximate value and depends on coins age and number of coins and is deposited to your LEOcoin wallet. The reward is driven by blockchain dynamics, is random and subject to change if coin architecture changes.

Your wallet doesn’t have to be online 100% of the time to get the respective stake benefit. If you have larger balance of LEOcoins in your wallet you would find stake blocks several times a day and get proper reward. In this case you could have wallet online only one week per month and still get max of annual stake benefit. But if you have small number of coins in your wallet, then you would find stake block maybe once per month and still get your reward but wallet would have to be online more time just to actually find the block.