NEW YORK, July 22, 2014 /PRNewswire/ -- Early in July, a breaking news report about virtual currencies brought virtual currencies to global debate once again. The Central Bank of Russia broke their silence on virtual currencies and digital currencies for the first time, and regulatory institutions released a new announcement that recommends Russia tone down its rhetoric about virtual currencies. In the context of the big trend of virtual currencies headed by BitCoin and the promotion of virtual currencies to be gradually envisaged by the government, enterprises and people, a brand new virtual currency, Vpal, with a more complete mechanism has emerged and aroused extensive debate among the public.
Currency value comes from credit. The credit of some widely used legal tenders such as U.S. dollar, Pound and RMB is established and issued by the government, thus legal tenders have currency value created by the government, but have the biggest problem of inflation.
For virtual currencies, the currency value also comes from credit, but such credit is established by users. But currently, the issuance algorithm of most of virtual currencies is output by mining machine CPU computing power; that is to say, the right to issue most of current virtual currencies belongs to "miners." Vpal is a type of virtual currency, and thus has no inflation naturally compared with legal tenders.
Meanwhile, it has an original issuance algorithm. Firstly, it ranks randomly according to daily Vpal volume of holding in users' "wallets" to calculate computing power, issues another 50% Vpal every day and distributes according to ranks of "wallets". Secondly, according to computing power of user groups, it issues another 50% Vpal every day and distributes according to proportions of user groups linked by wallets to total computing power. The greater the number of linked user groups, the more Vpal quantity distributed every day. It also makes spreaders become miners, and practically enables creators of Vpal virtual currency value to get corresponding value.
Most virtual currencies that are currently active in our daily life are mistakenly regarded as high-yield opportunistic investment products by many, while the creating significance and core values that are aimed at realizing global free trade and payment of virtual currencies are ignored. Vpal is based on circulation control and a unique algorithm, which makes it more like a "real and rational" virtual currency that aims at global free trade and payments in the future.