Month: October 2018

Posted on

Cryptonite

What Is Cryptonite?

Cryptonite is a blockchain-based and decentralized payment network for sending digital coins around the globe. Because the network is based on the Bitcoin core, it operates like Bitcoin but differs slightly on how the balance addresses are maintained.

  • The Cryptonite history

The Cryptonite network was established in mid-2014 and the native coins introduced into the market in August the same year. However, the founders of the platform have remained anonymous since inception.

This is considered a strategic way of advancing the concept of anonymity and staying away from the curious focus of authorities.

The price of Cryptonite between launch in August 2014 and October 2018 demonstrates a negative trend. In August 2014, Cryptonite’s value was $0.3. Then, it dropped by 5600% to reach $0.0007 in early October 2018.

This negative performance demonstrates the shifting demand from older cryptocurrencies as users prefer newer and more impressive networks.

After launch, the value of Cryptonite dropped to $0.0006 in the subsequent two months and remained below the $0.002 mark until May 2017. In June 2017, the value shot up to $0.7, the highest mark in the coin’s history.

The impressive performance recorded in June did not last. The Cryptonite’s price dropped sharply to $0.01 before the close of the month.

By October, the price had sunk to $0.0008 before starting to grow steadily in the subsequent months to reach $0.03 in January 2018.

In 2018, the price of Cryptonite has been on a negative trend dropping to $0.0007 in early October. Though the price has been performing dismally, the Cryptonite development team and its community are optimistic that it will ultimately grow to deliver a good return on investment (ROI).

What is the problem that Cryptonite Solves?

For decades, the complexity involved in sending value and saving money has resulted to an increase in transaction costs and loss of anonymity. The society has been in search for better alternatives that can facilitate faster sending of value. Here is a closer look at some of these problems that Cryptonite solves.

  • Centralized financial services

The banking systems operate as highly centralized entities guided by local laws. If you want to send funds from one country to another, the banking system uses know your customer (KYC) and anti-money laundering (AML) rules to ensure that they do not aid in fraudulent payments.

The centralized banking model also implies that the user details are known and easily accessible by many people including cashiers, banking management, and the political administration. This means that you become an easy target for scammers and even unwarranted legal battles.

  • Poor scalability

When blockchain technology was discovered, many people believed that the solution they had been waiting for had finally come. However, the decentralized system of sending value across the globe also brought the problem of scalability. Because most or all the nodes have to come to a consensus about the transactions in respective networks, the process of sending value is very slow.

Take the case of some common cryptocurrencies such as Bitcoin and Ethereum. Bitcoin can only handle seven transactions per second while Ethereum can only manage 20 transactions every second. This means that the scalability is a far cry when compared to the industry leaders such as Visa that can reach more than 20,000 transactions every second.

  • Slow adoption of blockchain technology in the community

Even as the number of cryptocurrencies in the market continues growing, it is ironical that the penetration into the community has been poor. When new coins are released, most of the people who rush to buy are mainly interested in making optimal profits. A good example to demonstrate this is when a new token is released through an ICO.

Many people who go to buy the tokens are investors targeting to make more money when the coins enter the market and the price increases. Even if you aim to buy the tokens from the exchanges, the process is still very complicated. You will be required to open a trading account, verify the account, and pick a cryptocurrency trading pair. These are the complexities that Cryptonite seeks to address.

  • Centralized mining

Centralization of mining is a serious problem threatening to erode the gains achieved through blockchain and decentralized networks. Many cryptocurrencies especially those using proof of work mining algorithm have suffered from centralization following the development of ASIC mining equipment.

While the equipment is advanced and help to generate a lot of hashing power, they are very expensive. This means that only the well to do in the society can afford them. Even the platforms that use proof of stake are still centralized because only the people who have a lot of stakes get a better chance of mining new blocks.

How Does Cryptonite Solve The Problem

Cryptonite was created with the target of ensuring that every person in the community can easily access and use the blockchain networks. Here is a closer look at how the network operates.

  • The Cryptonite account tree

The Cryptonite system utilizes a self-contained type of balance sheet referred to as account tree. This balance sheet is used to help maintain address balances differently from the Bitcoin model that relies on transactions.

When operating on the Cryptonite platform, the user can check the balance without requiring a lot of computational power. This is because the balance is stored in the account tree and every node can access the account tree without having to store the entire blockchain. This is why the platform is referred to as a light-weight platform.

The Cryptonite account tree is encrypted to enhance the platform’s security, anonymous, and transparent. The account tree is also used as an important component in Cryptonite mining.

To mine the network, all the miners only need to access the tree to confirm the balance of the public address of the person seeking to send the Cryptonite coins. The Cryptonite account tree also controls the block rewards that are paid to miners who confirm transactions.

  • The Cryptonite mini-blockchain scheme

This is a new feature provided by the Cryptonite system that uses a decentralized balance sheet approach. It implies that the nodes in the Cryptonite network do not have to struggle for days trying to synchronize the system.

The target of the mini-blockchain scheme is to ensure that Cryptonite can reach optimal scalability. This is achieved by allowing the network to forget older transactions so that only the latest ones are available. The development team indicates that the procedure helps to avoid bloating the system with old transactions.

However, this system has been criticized for facilitating the “forgetting” of older transactions because there are users who buy and hold coins for a long time. It could also make it difficult for individual users to follow own transaction history.

What makes Cryptonite better than it’s competitors?

As the blockchain niche becomes more competitive, every development team of the native network seeks to outdo competitors by demonstrating more value. Here are some of the things that make Cryptonite better than competitors.

  • The platform has managed to address the problem of scalability that had remained a serious threat to many networks. By facilitating faster transactions/ second, it implies that Cryptonite has helped to edge the blockchain technology closer to industry leaders in the market.
  • The Cryptonite system allows users to send value faster and cheaper. Because Cryptonite operates as a truly decentralized network, all the transactions are completed on a peer2peer basis. Because profit-seeking organizations such as banks and credit companies are bypassed, users are able to send value faster and at a lower cost.
  • The Cryptonite platform allows people to use the network and own it. One major advantage of decentralized systems such as Cryptonite is that users are allowed to use the network and own it. After joining the platform, you can be called upon to vote on governance issues such as the introduction of new features or even suggest new models of operation.
  • The platform has been in operation since 2014 and its features have been demonstrated to be stable and reliable. When a new blockchain platform enters the market, the community takes time to assess its features before affirming their stability. In most of the cases, it takes about three years before a network can be considered stable and reliable. .

How can Cryptonite be categorized?

Cryptonite is a creative cryptocurrency network designed to help advance the course of decentralization.

The platform has helped to demonstrate that with creativity, the issues being experienced in the blockchain niche can be addressed.

Though the Cryptonite account tree has received some criticism that it could cause conflict in the coming days because of “forgotten” details, it has effectively addressed the problem of scalability.

Now, even people with standard computers can access the platform and confirm transactions without downloading the entire blockchain.

What’s Cryptonite’s vision on Security?

The Cryptonite’s mission on security is to guarantee all users of optimal security of their assets and personal information.

This goal is aimed to give the platform a competitive edge against the centralized financial operators who easily make clients details accessible to many parties.

To achieve this mission, Cryptonite uses advanced encryption and decentralization. All the user details and their transactions are encrypted so that no one including miners can know their personal details.

For example, miners only follow the account tree to check the public address balance as opposed to personal details.

Examples of Cryptonite’s use cases / applications

The primary goal of the cryptocurrency networks is to win as many users as possible through diverse applications in the society. Here are the main use cases of Cryptonite.

  • Paying for transaction charges in the Cryptonite’s network.

To send value across the globe on the Cryptonite platform, you are required to pay a transaction fee in XCN. The fee is used in the network to facilitate the development of new features and motivating the miners.

  • Use Cryptonite to trade in the markets.

For people who would like to trade in the cryptocurrency markets, Cryptonite is a good option. Note that trading in the market requires pairing the coin with others such as Bitcoin and Ethereum. After joining the preferred exchange that lists Cryptonite, you need to open a trading account, verify it, and deposit the coins to trade.

You will also be required to create an appropriate trading pair before starting to trade. For example, you can pair Cryptonite with Bitcoin to form BTC/XCN or with Ripple to form a pair like XCN/XRP. To effectively trade in the markets, it is also advisable to learn the basics of cryptocurrency market trends.

  • Buy services and goods using Cryptonite coins.

Recently, more stores have come out to demonstrate their support for cryptocurrencies. The stores’ managements argue that the decentralized systems are faster to clear payments and cheaper compared to the standard use of cards and bank transfers. Therefore, you can buy goods and services when you see a store that accepts Cryptonite coins.

  • Use Cryptonite to pay the cost of using trading in the networks.

If you are trading Cryptonite in the exchanges, you will be charged a transaction fee that can be paid using XCN. Note that since trading is done by pairing Cryptonite with another coin, it implies that you have the option of paying the fee using two coins. For example, a person who is trading XCN/ETH can pay the charges either in XCN or XCN.

  • Use Cryptonite to save funds.

If you are looking for a reliable way to save funds, using the crypto networks is a good option. Because the user accounts are encrypted, you can enjoy saving funds without worrying of third-party seizures.

However, it is important to appreciate that the cryptocurrencies are highly volatile. This means that the price of the tokens can easily shift based on emerging regulations, competition, and technology.

http://cryptonite.info/

https://coincheckup.com/coins/cryptonite

https://coincheckup.com/coins/cryptonite/predictions

https://cryptointelhub.com/what-is-cryptonite-xcn/

 

 

Posted on

Golos

What Is Golos

Blockchain technology is adrift and moving rather fast. After Bitcoin introduced the decentralized and peer2peer method of sending value, programmers have now taken the technology to other niches. One case of this diversification is Golos.

  • A closer look at Golos

Golos (translates to “voice” in Russia) is the main cryptocurrency of the Golos.io platform (a Russian blogging platform). It is a licensed fork of Steemit project that runs on the Graphene blockchain.

This means that the cryptocurrency network has most of the features that you get in the Steemit system.

The Golos cryptocurrency was designed with the primary target of motivating publishing of quality content. It was designed in 2016 by a developer referred to as Cyber Fund. The developer is largely involved in supporting and investing in blockchain startups.

During the launch, ICO was only available to Russians. This method was intended to help promote the adoption of blockchain in the Russian community. The ICO raised $450,000.

  • The performance of Golos

When Golos coins entered the market early in December, the value was $0.07. Then, it grew by about 40% to $0.1 early in February 2017 before dropping to $0.009 in mid-march 2017. Between April and early December 2017, the price rose to $0.18.

Golos reached its highest price of $0.4 early in January 2018. However, the good performance did not last. The price took a bearish turn starting from January culminating to $0.03 in early October 2018. The community is very optimistic that the price will change and take a bullish trend.

What is the problem that Golos Solves?

  • Poor adoption of cryptocurrencies in the market.

Since 2009 when cryptocurrencies debuted, it has been a bumpy road trying to get people to adopt and use them as alternative currencies.

While it might appear like all is well because of a large number of cryptocurrencies, the experts argue that the rate of adoption is very poor.

When new coins enter the market, many people who rush to buy are investors looking forward to selling at a profit in the future. Therefore, people acquiring the coins for direct use in everyday activities such as shopping and paying bills are few.

Golos is aimed at extending the use of the blockchain technology in the social media and publishing niches. Indeed, the cryptocurrency specifically targeted reaching the Russian communities.

  • Lack of motivation for publishers especially in social media.

Today, almost everybody is on social media. The ease of access has made it a rich niche for publishers to sell content. However, the lack of motivation has pushed publishers off the market.

The problem has been worsened by the rising cases of black hat SEO where people plagiarize or release low-quality content but still get credit through tricks such as buying links. Golos targets to address the problem by ensuring that publishers get rewarded for their work.

  • The high volatility of cryptocurrencies.

One of the reasons keeping crypto enthusiasts away from the cryptocurrencies is high volatility.

Unlike the fiat currencies that are controlled by central banks that release more coins or mop them from the market to control inflation, cryptocurrencies do not have central management.

The impact of completely decentralized governance is that response to issues such as competition, regulation, speculation, and new technology swings the price to the extreme.

For example, speculation drove the price of most cryptocurrencies to record high towards the close of 2017.

Bitcoin reached $19,000 early in January 2018. But this growth did not last. In the subsequent months of January through to August, most of the coins experienced sudden price drop to record low. Golos targets to address this volatility so that users can use the coin without worrying their money will lose value.

  • The high cost of sending value.

If you want to send value using a conventional wire transfer, the process is lengthy and expensive.

The bank management reviews the sender and receiver according to banking regulations like know your customer (KYC) and anti-money laundering (AML) rules.

This bureaucratic process makes bank transfers to take many days before getting effected.

Because banks and credit card companies are profit based organizations, they charge high transaction fee to meet all associated costs. Golos targets to address the problem through complete decentralization of the network.

How Does Golos Solve The Problem

As a fork of Steemit platform, the main strategies used by Golos are similar to those used at Steem. Here is a closer look at the solutions for the above problems:

  • A three-tier token ecosystem

A three-tier ecosystem used at Steemit was considered an ingenious method of delivering more value to users. Now, the same model has been carried to Golos to replicate the benefits.

The primary coin on the Golos network is GOLOS that acts like other coins such as Bitcoin. This implies that you can trade the coin in the markets such as Bittrex and Livecoin.

The second coin used on the network is Golos Power is used for voting in the Golos.io network. This implies that if you want to upvote content on the platform, you will need to own some Golos Power. It is also used to reward people who publish quality content.  

The last coin on the Golos.io platform is the Gold Backed by Golos (GBG). The target of this coin is to help people joining the cryptocurrency niche to do it without risking the associated high volatility. In the system, 1GBG is equal to 1 milligram of gold.

  • Total decentralization of the blockchain platform

Like Steemit, Golos is a fully decentralized platform that combines proof of work (PoW) and proof of stake (PoS) consensus algorithms. Combining the two protocols means that the network helps the platform to enjoy top security derived from PoW and speed of the PoS protocols.

Instead of requiring all the nodes spread in the Golos network to vote before transactions can be confirmed, only the delegates are involved. This means that the transactions are completed faster and the network is more reliable. Note that these delegates are selected by the nodes in its system.

  • Motivating publishers by rewarding them with Golos Power

To promote publishing of quality content, the Golos system rewards creators with Golos Power when their content is upvoted. Note that this model works in two ways. The publishers are motivated to create more high-quality content for Golos to draw more users to the platform.

If you are a publisher and have the skills to create quality content in any specific niche, Golos is an open platform that guarantees ready rewards. Remember that you will need to join the Golos platform before being allowed to publish content.

What makes Golos better than it’s competitors?

The fast-growing competition in the cryptocurrency niche implies that respective network developers gave to innovate and deliver higher value than opponents. Here are the main reasons that make Golos better than competitors.

  • It targets the rich traffic rich social media niche.

While most cryptocurrencies are targeted at facilitating financial transactions, Golos was created for the social media.

With social media platforms attracting a lot of people because of accessibility, Golos expects to reach them to sell content and optimize growth.

Unlike the common social media platforms such as Facebook where good content is only upvoted with no motivation, Golos is likely to win the trust of more publishers for the added rewards.

The platform is likely to become a center for high-quality content. Such growth is expected to also push the price of the native coin, GOLOS up.

  • Golos offers more products that many coins such as Bitcoin.

To make social media more valuable and increase adoption in the market, Golos has adopted more products that most coins in the market. For example, users can join the platform to send funds on a peer2per basis, post content, or upvote content.

  • Golos system is completely decentralized.

Golos beats the conventional financial platforms for operating a completely decentralized network. By running as a network of nodes that help to confirm transactions in the platform, Golos does not suffer from a single point of failure.

This means that users can join and use the platform without worrying about getting attacked and/or losing their funds.

The decentralized system has been crucial in helping to pull down the cost of sending value because payments are made on a peer2peer basis. Even when sending funds to a different part of the globe, the transactions are instant and cheap.

The only thing needed is for the payer and payee to be in the same network.

  • The platform is associated with the successful Steemit platform.

By associating Golos with Steemit, the development team expects to replicate the success that Dan Larimer and Ned Scott achieved even in other platforms such as Antshares and EOS. Because of the close association with these platforms, Golos is likely to enjoy features that are discovered in them.

How can Golos be categorized?

Golos is a completely decentralized platform of the social media that targets to extend the reach of blockchain technology to more people in the community. Its unique design of the 3-token system has helped to answer different issues such as high volatility and high transaction costs in the conventional media.

The main undoing of the platform is that it was created with the primary target being the Russian community. This means that it might take time before others outside Russia can join and help to grow the platform.

Experts have indicated that this could be the primary cause of the current low price of GOLO in the market.

What’s Golos’s vision on Security?

The Golos vision on security is to become the most secure and reliable cryptocurrency in the market. The focus is to help users to join the platform and use it without worrying that of losing their coins through attacks. Here are some of the methods used to keep the platform secure.

  • The system uses advanced encryption that helps to make user information and transaction details inaccessible.
  • The development team progressively reviews the Golos system to identify gaps and seal them through regular updates. This helps to prevent attackers who seek to take advantage of vulnerabilities to break into cryptocurrency networks.

Examples of Golos’s use cases / applications

Golos entered the market where hundreds of other cryptocurrencies were already in operation. Despite this, the development team has been very aggressive in extending the use cases of the applications of Golos. Here are some of the use cases.

  • Sending value on the Golos platform.

Golos main coin, GOLO, can be used to send value on a peer2peer basis. This implies that you can use it to bypass the standard centralized banking or credit card organizations. Note that to send value using Golos, both the sender and recipient must be in the network.

  • Paying transaction fee on the Golos system.

When you are processing transactions on the Golos platform, a transaction fee has to be paid in the native coin. Whether you are sending value or voting for content in the platform, you will need either GOLO or Golo Power coins to clear the payment.

  • Trade GOLO in the markets.

If you want to make more money from Golos, you could opt to trade the native coins in the exchanges. These are the main markets that bring together buyers and sellers so that the price is driven by forces of demand and supply. Note that the exchanges require users to start by opening accounts, funding them, and then pairing Golos with other coins such as Bitcoin and Ripple.

  • Gold Backed by Golos (GBG) for saving.

Unlike the standard cryptocurrencies such as Bitcoin or Ethereum that are faced by the serious problem of volatility, Gold Backed by Golos is stable and very effective for saving money. This implies that when you buy Gold Backed by Golos (GBG), the price will be as stable as that of gold bullions. It is considered a better way of saving cash on a decentralized system instead of using the conventional banking system.

https://steemit.com/steemit/@dek/what-are-your-thoughts-on-golos

https://coincheckup.com/coins/golos/predictions

https://coincheckup.com/coins/golos

https://coincheckup.com/coins/golos/analysis/

https://golos.io/