Month: August 2018

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ARK

What is Ark?

 Ark is a decentralized ecosystem created to help increase the adoption of blockchain technology in the community. In their white paper, the ARK development team indicated that they were working on a sandbox system that can allow businesses and individual users to craft own blockchains. To achieve their objective, the founders created ARK as a derivative of BitShares, Crypti, and Lisk. This helped them build on the existing technologies as opposed to reinventing the wheel.

The ARK features an improvement to the DPoS (delegated proof of stake) consensus algorithm. The DPoS used by the ARK was considered more effective because it offers a simplified future interaction between with other blockchains that utilize same protocol. The enhanced codebase allows ARK to offer bridges in form of apps and other systems. To address these issues, the development team narrowed to two critical areas; practical services for real people and fast secure core technology.

What is the problem that Ark Solves?

ARK is designed with one core objective; address the problem of poor blockchain adoption. When Bitcoin was created by Satoshi Nakamoto, it demonstrated that it was possible to run a fully decentralized system to increase the efficiency of financial operations. Ethereum followed closely and introduced the smart contracts. Then, Altcoins introduced a wide array of features. However, the rate of adoption still remained below par.

Many people going to the blockchain networks are perhaps attracted to the hyped features and anticipated ROI (return on investment). In 2017, most people were trooping to Bitcoin to cash in the skyrocketing price and reap high ROI. With such models being the drivers for people coming to the blockchain networks, application in other areas has been very poor. This is the potential that the ARK has come to address.

How does Ark solve the problem?

From an early point, the ARK team envisioned a complete ecosystem with endless potential for growth and success. The team targeted having a large ARK community, its underlying token, bridged blockchains, optimal security and high privacy. Here are the core features that the ARK team uses to enhance blockchain adoption.

1.  The Ark SmartBridges (bridged blockchains)

Though the ARK platform does not offer direct support for side-chains or decentralized databases, it features a method of bridging the blockchains through a bridging function built into its core code. The bridging function allows other blockchains to send or receive trigger function notices as well as informational data via smart bridges.

One good thing about the smart bridges is that they allow users to even connect to centralized services. For example, users can listen to the ARK network for particular triggers in a SmartBridge using Encoded Listeners. Then, their autonomous systems can act on their behalf. The Encoded Listeners are designed by connecting blockchain administrators. However, ARK provides them with the Rapid Deployment Engine for such creation.

The Bridged Blockchains can allow the ARK crew to come-up with systems such as micro-loan bridged blockchains where clients who want to get loans can be connected with lenders. When you combine this approach with online/offline transfer hardware, processing of payments, loans and transfers become prompt and simpler.

To push with its agenda of promoting faster adoption, the ARK team has integrated with many programming languages. This implies that almost every developer can now feel comfortable working on the ARK system. Some of the supported languages include;

  • Java.
  • Go.
  • Ruby.
  • Swift iOS.
  • PHP/Laravel.
  • .NET.
  • Python.
  • RPC.
  • Elixer.

2.  The ARK ‘s Delegated Proof of Stake consensus model application

ARK works with Delegated Proof of Stake (DPos) algorithm. Unlike other common Proof-of-Work (PoW) blockchain networks where miners are required to have expensive mining rigs to generate the highest possible hashing power, the ARK is different. By utilizing DPoS, it implies that nodes in the ARK system have to select the delegates to confirm transactions and add new blocks. The network will only have 51 delegates in its system.

As a delegate in the system, you only need to have some ARK to participate in the voting system. Note that voting requires the nodes to pay a fee of 1 ARK. Besides, the reputable delegates have to submit written proposals about how they will operate. If they go against the proposals, users can outvote them.

Once you select a delegate, part of the reward he gets from confirming transactions will be channeled to your wallet. Therefore, if you have more stake, it implies that you will also enjoy a higher reward. A block reward of 2 ARK is awarded to a delegate for every block he adds to the public ledger. Note that a new block is generated every 8 seconds.

With the block time of 8 seconds, ARK stands well ahead of its peers. For example, Bitcoin has a block time of 10 minutes, Litecoin 2.5 minutes, and Ethereum 14 seconds. By the close of 2017, the ARK system was processing a total of 25 transactions per second though they indicated the transactions would be scaled up by lowering the block time.

3.   The transaction fee

While the idea of decentralization was primarily targeted at pulling down the cost of sending value through the elimination of centralization entities such as banks, crypto coins’ price growth has become a big obstacle. This situation is what has been making more people consider shifting from top networks such as Bitcoin and Ethereum. To keep the transaction low at the ARK network, the transaction fee is maintained at 0.1 ARK. However, this fee is subject to changes as the network continues growing and becoming more efficient. Here are other fees associated with the Ark.

  • Sending ARK in the network: 0.01 ARK.
  • Registering as a delegate: 10 ARK.
  • Voting/Unvoting: 0.02 ARK.

What makes Ark better than its competitors?

From the beginning, ARK was committed to covering the gap that many other cryptocurrencies had either overlooked or were unable to address; faster adoption in the society. The main things that make the ARK better include;

  • The ARK uses Delegated Proof of Stake (DPoS) consensus that makes it easier for greater adoption. This implies that people only need to hold some stake in the network to mine and participate in building consensus in the network. You do not need to have expensive ASIC equipment to qualify to mine the network.
  • By using POS model, it implies that less energy is required to mine ARK is low. This makes it better than most proof of work based cryptocurrencies that energy intensive. What this implies is that even those with standard computers can get involved in mining the network.
  • The price of the ARK tokens has been doing very well in the market. For example, one ARK was valued at about $0.07 in March 2017. However, this value grew with more than 2000% by mid-June 2017. This is significant growth at a period when other cryptocurrencies have been on a negative growth trajectory.
  • The Ark is one of the top cryptocurrencies that have invested so much in promoting mainstream adoption. This adoption has helped more people to understand what cryptocurrencies are and how to use them in mainstream operations.
  • The ARK has been designed to help with more use cases. This makes it better than other top networks such as Bitcoin that can only be used for sending value. From gaming to the printing industry, every party is likely to find meaning in the network.
  • Unlike other blockchain networks that are primarily aimed at own growth, the ARK is different. It is designed to communicate with other networks so that one does not have to open multiple accounts in different networks to send value. When the ARK grows, the entire industry will also take a similar growth trajectory.

How can Ark be categorized?

The ARK is a unique blockchain network that is carefully designed to make meaning of decentralized operations in the society. By creating a model that allows every niche to join and use the blockchain, the Ark appears to be stone that the industry needs to achieve its full potential.

From the use of Delegated Proof of Stake to the reduced price of transactions, the ARK team is stopping at nothing in helping more people join and enjoy the technology. But it is their commitment to the progressive development of new features and supporting apps that have made the network more appealing to more people. For example, the development team has indicated they will work progressively to promote scalability.

What’s Ark’s vision on Security?

In their white paper, the development team appreciated that security was a crucial concern for most people before joining the blockchain sector. Therefore, the team committed to incorporating cryptographic and security principals in the entire development cycle to make the network as secure as possible. They want to give users a guarantee that their assets, information, and stake in the network would always be secure. Here is how the development team plans to achieve the mission.

  • The team carries progressive risk assessment to identify gaps in the network and fixing them immediately to lower the risk of attacks.
  • The use of Delegated Proof of Stake has also helped to evenly distribute the network’s tokens to prevent the danger of many tokens falling in the hands of a single mining pool and risking the network with threat of 51% attack.
  • The network employs advanced cryptography that encrypts user information at all levels to ensure that no one can easily pull out personal information. Even when miners visit your public address, they can only pull out the balances for confirmation as opposed to personal information.

Examples of Ark’s use cases / applications.

In line with the Ark’s mission of promoting extensive adoption of blockchains, the development team targeted and has been growing the network’s use cases. Here are some of them.

  • Live gaming and personality broadcast streaming platform. This closely resembles Twitch that allows content creators earn ARK via tips embedded in Chat boxes. In live streaming, ARK members rely on a mixture of CDN (content delivery networks) and P2P to take high-speed live stream of content to users. Note that developers who target in-chat modification are also a key revenue stream for clients of Ark content creators.
  • The Ark network and native tokens are a reliable method of sending value across the globe. As a decentralized network that operates across the globe, it implies that sending value can be completed easily without involving third-party organizations such as banks or credit companies. The network is fast, cheap, reliable and highly secure.
  • If you are looking for a reliable platform to save cash or invest, the Ark is one unique consideration. As a decentralized and fully encrypted network, you are sure that the savings will be safe from attackers and even third-party seizures. Besides, the demonstrated potential makes the ARK network a reliable option for investors targeting high ROI (return on investment).
  • Because of its versatility, ARK has become a great option for direct payment in both online and offline stores. You can use the native coins to make purchases on stores that accept it or even convert to other coins. More stores prefer the ARK because they can customize its diverse features for easier, faster, and reliable payment.
  • The Ark is designed to effectively operate with a wide range of devices ranging from smart cards to wearable NFC devices. This is achieved via direct partnerships with NFC hardware designers to help take the ARK closer to the people. Whether you want to follow the performance of the native tokens in the market or purchase more, it is as simple as tapping the smart bracelet.
  • The ARK Tokens can be used to pay for transaction fees in the exchanges. Traders are required to pay a fee based on the traded volume when using most exchanges. It is important to appreciate that the charges in most markets are different from what the ARK charges when sending value.
  • On the Ark network, you can use the native token to pay the transaction charges for sending value. You can also use it to pay the registration fee or during voting/ unvoting delegates.

 

https://coincheckup.com/coins/Ark

https://blog.ark.io/

https://steemit.com/@arkecosystem

https://blog.ark.io/ark-frequently-asked-questions-faq-bcb90a0537cc

https://ark.io/Whitepaper.pdf

 

 

 

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Peercoin

What is Peercoin?

Peercoin (short form PPC) is a peer2peer cryptocurrency that uses both proof of work (PoW) and proof-of-stake (PoS) consensus algorithms. The cryptocurrency is premised on a paper released by Sunny King and Scott Nadal on August 2012. Note that Sunny King is a pseudo name that was also involved in the creation of another coin referred to as Primecoin. But the other Peercoin founder, Nadal, diminished in 2013.

Peercoin creation was largely inspired by Bitcoin and, therefore, has a lot in common when it comes to the source code as well as technical implementation. The code of the network is issued and distributed under the MIT/X11 open license. However, it features some fundamental differences from Bitcoin and other similar coins such as Litecoin and Namecoin. For example, it does not have a hard limit on the coins, though it is designed to achieve inflation of 1% per year.

What is the problem that Peercoin Solves?

Since the inception and introduction of Bitcoin by Satoshi Nakamoto, the main consensus model in the industry has been proof of work (PoW) algorithm. However, this algorithm opens serious flaws in the industry including the following.

(i)   Centralization of mining

Use of proof of work (PoW) protocol at Bitcoin and other cryptocurrencies meant that only those who could manage the ever-growing hashing power could mine the coins. Things moved from bad to worse as expensive ASIC mining equipment hit the market. Most of the common miners for proof of work (PoW) based cryptocurrencies were edged out as mining pools and those who could afford the expensive equipment took center stage. The idea of decentralization that Satoshi wanted to advance was being pushed away.

(ii) Higher security risks

With centralization taking over in most proof or work cryptocurrencies, related security threats also became predominant. The commonest of these risks was the threat of 51% attack. This is a threat where more than 51% of tokens for a cryptocurrency are held by one party or mining pool. In such cases, the controlling party takes full control and could decide to harm the network.

(iii) High energy costs

Proof of Work (PoW) algorithm model used at Bitcoin and other coins is highly energy intensive. The respective nodes have to work against an ever-growing complex algorithm to mine blocks and earn native coins. The high cost of energy has brought to fore the argument on whether mining makes sense in the light of the high energy costs. In the Peercoin whitepaper, the founders ask the question; must miners maintain energy to run a decentralized cryptocurrency?

How does Peercoin Solve the problem?

To address the above issues, the Peercoin founders discovered the concept of coin age. This concept simply denotes currency amount times holding period. Take the example of Johann who received 20 Peercoins from Dennis, and held them for 60 days. The founders argued that Johann accumulated 1200 coin-days of coin age. Therefore, when Johann spends the 20 Peercoins, the coin age has been destroyed/ consumed.

The new concept (Coin age) made the team dig deeper and come up with an alternative consensus protocol referred to as proof-of-stake (PoS). They decided to implement the proof of work (PoW) and proof of Stake (PoS) together.

1)   The application of hybrid model of PoW and PoS consensus models

  • The application of coin age to strengthen the Peercoin model

The proof of work algorithm in the Peercoin is used to facilitate spreading of the distribution of new coins. However, PoS is used to help secure the network and prevent it from mining-related attacks. Remember that since Peercoin still utilizes the SHA-256 hashing model, you can also mine it with common Bitcoin mining rigs.

The Proof of Stake (PoS) notion implies having some form or ownership in the network. This means holding a significant amount of peercoins. At Peercoin, the Coin age consumed when a transaction is completed is considered part of the stake. The philosophy of stake was meant to help strengthen the monetary system and preventing it from forgery.

  • Block generation using proof of stake (PoS)

In the Peercoin’s hybrid model, the blocks are separated; proof of work blocks and proof of stake blocks. The proof of work (PoW) blocks are generated pretty the same way it happens in other POW platforms such as Bitcoin. You have to use the computer’s hashing power to solve a complex mathematical puzzle to find and add new blocks into the public ledger. But using PoS is a little different.

Proof of stake in the new design blocks is a different type of transaction referred to as Coinstake. In this model, the transaction block owner is required to pay. This implies that he has to consume his coin age in order to generate a new block. The first input is referred to as Kernel and it is aimed at helping to make the proof of stake (PoS) blocks as similar as possible to those generated via proof of work method. However, it is important to appreciate that in the PoS model, hashing is implemented over a very limited search space compared to the unlimited search space in PoW. This implies that there will be no significant consumption of energy when using PoS.

The hash target that each stake kernel is required to meet is only a target per unit coin age consumed in every kernel. This is a major contract from the PoW model used in top networks such as Bitcoin where nodes have to meet a specific (fixed) target value. This implies that the more the coin age that gets consumed in a kernel, the higher the chances of hitting the target protocol.

It is important to also appreciate that in both the PoW and PoS protocol application systems at Peercoins, the hash rates (mining difficulties) are adjusted continuously as opposed to a fixed period of time. For example, Bitcoin has a set hash rate adjustment interval of two weeks which opens the gateway to a sudden network generation rate when a miner/s discovers the hashing rate.

2)    The Peercoin’s protocol shift to reliance on consumed coin age

The protocol that determines the competing block that wins to become the main chain in Peercoin was changed to use consumed coin age. What this implies is that proof of stake was expanded to encourage nodes to use the native coins more. Therefore, the transactions in every block help to contribute to the overall consumed age. Then, the blockchain that has the highest total coin age is selected as the main chain. This model differs from the PoW application where the main chain is determined primarily on the work done.

What makes Peercoin better than it’s competitors?

  • By employing the PoS protocol, the Peercoin system is less susceptible to 51% attack. This makes the network safer because an attacker would have to struggle and own more than 51% of the entire coin age of the total Peercoins. Whether you are mining the network or simply holding the tokens waiting for the price to shoot up, this is one network that provides high security.
  • The average transaction charges at Peercoin are relatively lower compared to other networks. Take a random example such as mid-2018. The average cost of transactions in Bitcoin was $1.20, Ethereum was $0.28, and Bitcoin Cash was $0.076. However, transactions on the Peercoin only attracted a small fee of $0.034. This has been cited as a major reason for the large inflow of users even from other networks.
  • The Peercoin development team progressively researches the blockchain technology to take the industry to the next level. For example, the development team hinted at the possibility of introducing a new consensus protocol referred to as proof-of-excellence. If the new protocol comes to fruition, it implies that tournaments will be held occasionally to mint coins depending on the performance of participants in the competition. It mimics live tournaments in standard sports competition. This is an indication that Peercoin is likely to grow even better in future.
  • The Peercoin has continued to grow progressively and delivering a high return on investment. Between May 2013 when the price of Peercoin was $0.11 and mid-June 2018, investors experienced a growth of more than 1200% ROI (Return on Investment). This is huge ROI at a time when many cryptocurrencies have been struggling to survive.
  • Application of proof of work protocol alone would imply that when the mint rate is tending zero, the incentives to mine goes very low. This could make the miners to completely stop mining and risking the network. However, Peercoin is better than others because even if such disincentives hit the network, the proof of stake would still protect the network.

How can Peercoin be categorized?

Peercoin is one of the most important cryptocurrencies that have helped redefine the blockchain sector. With its founders being the first to discover the concept of proof of stake that has become so crucial in the industry, people can only expect better things. But this is not all. The cryptocurrency network also demonstrated that the current technologies do not have to be thrown away when crafting something newer.

  • It demonstrated the ability to use proof of work together with proof of stake algorithms.
  • The founders demonstrated that proof of work can also be improved to deliver better results.
  • Their suggestion for better technologies such as the proof of excellence demonstrates that people should indeed expect more from the platform and its development team.

What’s Peercoin’s vision on Security?

The Peercoins vision for security is to become the most secure blockchain network in the market. At this point, it is important to note that Bitcoin and other early blockchain networks were faced with serious security threats. For example, Bitcoin suffered the worst attack when a bug known as Number overflow error was planted by an attacker in 2010. Other serious security threats of the time included the hack at Mt. Gox and the Silk Road Scandal. All these lapses made Peercoin developers work harder to keeping the network more secure.

  • Proof of stake protocol was designed to help with better distribution of Peercoins and avoid the threat of 51% attack.
  • Advanced encryption is applied in the platform to help keep the details of users and their accounts as private as possible. Even when miners follow back the network, they can only pull out balances in the respective public addresses as opposed to personal details.
  • Checkpoints, though heavily contested, were crucial in helping to help solidify the Peercoin’s history. They are used to reduce the danger and lower risks associated with double spend.
  • The Peercoin system also applies the duplicate protocol to help protect the system from the proof of stake getting copied by attackers. Every node in the Peercoin system collects a pair of all coinstake transactions that it has seen. Therefore, when the node notes a block with a duplicate, it is ignored.

Examples of Peercoin’s use cases / applications.

  • Sending value on the Peercoin network on a peer2peer basis.
  • Mining the network to earn Peercoins.
  • Trading Peercoins in the cryptocurrency markets.
  • Investing and saving on the network. Many people opt to buy the native coins and hold them waiting for the price to grow over time.
  • You can opt to use Peercoins directly on the stores that accept them. These include VerbenaProducts.com, 1eo.us, and Vintage furniture. Others are WoodShotGlass, Cryptoart, and CryptoTotal.com.
  • If you want to trade Peercoins in the markets, you can also use the native coins to pay the transaction fee.
  • Buying and holding the Peercoins can also help you to increase your coin age and raise the chances of getting selected to mint the next block.