Month: October 2018

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MergeCoin

What Is MergeCoin

MergeCoin is a peer2peer cryptocurrency and an open-source platform designed to help users run instant financial transactions. The coin operates as a decentralized cryptocurrency that rewards participants based on “connectivity age” and not “coin age” that has become easy to abuse especially from the exchanges by people who do not actively help support the networks.

  • A closer look at MergeCoin

MergeCoin was created early in 2017 and entered into the market by the close of April the same year. On April 27th, 2017 the price of the native coin was $0.09. Then, it dropped slightly to $0.07 by mid-May 2017 before rising sharply to $0.1 towards the close of the month.

The price dropped early in June 2017 before hitting another peak of $0.19 towards the close of the month. But that good performance did not last. Between July 2017 and January 2018, the price took a bearish trend culminating to a low of $0.01.

The most notable thing about MergeCoin is its ability to steadily push a bullish trend when most of the coins’ prices were taking a downward trend. For example, the price of the coin rose from $0.028 in late January 2018 to $0.19 in April the same year.

Note that the MergeCoin has been inactive in the market since May 2018.

What is the problem that MergeCoin Solves?

Though the blockchain niche has been growing at a steady rate, it has been suffering from serious challenges. Here are some of the issues that MergeCoin solves.

  • Lack of privacy in financial institutions

If you take a closer look at the current governance of most financial institutions, their structures lack privacy.

Personal information and transaction details are known to cashiers, bank management, and even political administration. Indeed, the details can even be ordered by a court of law if you are facing criminal charges.

Lack of privacy implies that you can become an easy target for both political and business reasons.

Note that even in some cryptocurrencies such as Bitcoin, advanced technologies are now making it possible to pull out individual information. MergeCoin seeks to address this problem by ensuring that all transactions and personal details are completely out of reach.

  • High cost and slow transactions when sending value

Most centralized services such as banks and credit card companies follow strict guidelines outlined in the law.  When clients send value, they have to check their background and ensure that the funds are not proceeds of fraud. This makes the transactions to slow.

Because the centralized financial service providers are profit-oriented, they also charge very high transaction costs. The cost is used to meet the expenses of paying staff, renting space, and profit. Now, MergeCoin is providing a better way for faster and cheaper transactions.

  • Centralized mining

While the principal goal of cryptocurrencies is to facilitate decentralized operations, the development of advanced ASICs mining equipment has become a serious threat. Though they are designed to generate more hashing power than the common GPUs and CPUs, they are very expensive and out of reach for the average person.

This implies that mining and associated rewards are only available to the well to do in the community. The issue raises the threat of the networks suffering from 51% attacks. MergeCoin addresses the problem through proof of stake (PoS) consensus algorithm.

How Does MergeCoin Solve The Problem

The founders of MergeCoin wanted to have a competitive edge in the market by crafting a system that addresses the outlined problems. Here are some of the solutions it adopted.

  • Static-proof of stake algorithm

Proof of stake (PoS) consensus algorithm was created as an alternative to proof of work (PoW) protocol that is used in many pioneer coins such as Bitcoin and Litecoin.

However, even the PoS protocol was still subject to abuse because people would only need to buy some stake and get a reward. MergeCoin opted for a different type protocol referred to as Static proof of stake.

Under the static proof of stake system, users on the platform are rewarded based on their behavior to support a secure, fast, and robust system. This means that you will need to use the coins stored in the MergeCoin platform to get rewarded.

  • Complete decentralization

MergeCoin operates as a completely decentralized system. It is a set of nodes in its system that work together to confirm transactions and govern the system.

This implies that there is no centralized administration and the nodes are called to vote when changes are being implemented in the network.

As a decentralized network, users who want to send funds are able to do it on a peer2peer basis without going through third parties. This means that transactions are instant and cheaper.

  • Use of masternodes

Masternodes are used in the MergeCoin to help in breaking up transactions into multiple and undistinguishable relays to make the original transaction complex.

Then, they send them in different paths and are only merged at the final destination.

The target is obfuscating the transaction details so that no one can easily follow and know the personal details of the sender. This is one of the reasons why a lot of people have been joining MergeCoin, especially from other less anonymous networks.

What makes MergeCoin better than it’s competitors?

The cryptocurrency niche has become an attraction that is drawing interest from all companies and computing experts.

By the close of the third quarter of 2018, over 1600 cryptocurrencies had entered the market. Here are some of the things that make MergeCoin better than the competitors.

  • MergeCoin is a completely decentralized system.

Unlike the conventional banking system, MergeCoin operates as a completely decentralized system. This means that it does not have a single point of failure.  It utilizes the advanced static proof of stake (PoS) model that involves using the nodes with a stake in the network to facilitate transactions and keep the system secure.

  • MergeCoin uses an effective system of masternodes to help make transactions secure and anonymous

As more governments target the cryptocurrencies, anonymity is becoming even more crucial. MergeCoin uses a system of masternodes to break transactions and obfuscate the tracks so that no third party can easily know the user’s personal details. This implies that you can now use the network without worrying of third-party seizures or attacks.

  • The platform is cheaper and faster to use than centralized organizations

As a decentralized network, MergeCoin system bypasses profit-seeking organizations such as banks to make transactions faster and cheaper. This implies that users will no longer need to wait for three days to send value from one part of the globe to another. The MergeCoin system allows users to send funds instantly no matter the location of the sender and the receiver.

  • The MergeCoin platform allows users to join and own the network

The MergeCoin system uses proof of stake consensus model that implies it is owned by the people who have some stake there. This means that when you buy some MergeCoin coins, you will be called to help in making key decisions to build consensus because you are part of the system governance.

How can MergeCoin be categorized?

MergeCoin can be categorized as a completely decentralized and truly anonymous platform. Its design has helped to effectively address most of the issues that had proven very difficult for pioneering platforms such as Litecoin.

The platform has helped to advance the blockchain industry by demonstrating how static PoS, a variant of the proof of stake consensus algorithm can be applied to help keep crypto networks more secure. Now, people have to get actively involved to receive rewards for staking the network.

What’s MergeCoin’s vision on Security?

The MergeCoin’s mission on security is to become the most secure and anonymous cryptocurrency network in the industry. As technology advances, the crypto community is getting worried that older encryption methods such as the use of pseudonyms at Bitcoin will become obsolete and make their transactions accessible to third parties.

MergeCoin puts a lot of effort in keeping the platform secure and attractive to users. Here are the main strategies.

  • The platform operates as a completely decentralized system using static proof of stake consensus protocol. The protocol helps to ensure that the coins are distributed evenly to reduce the danger 51% attack.
  • MergeCoin also uses advanced encryption and masternodes that help to keep the users’ information and personal details anonymous.
  • The development team at MergeCoin reviews the network regularly to identify gaps and fix them promptly before attackers can take advantage of the vulnerabilities.
  • The MergeCoin system uses QT wallets for Windows, Mac, and Linux to ensure that users have total control over their private keys. Remember to keep the keys as secure as possible to avoid losing the native coins.

Examples of MergeCoin’s use cases / applications

When MergeCoin was unveiled early in 2017, the founders wanted to win a greeter market share in the unfolding market. Therefore, they targeted to make the coin has as many use cases as possible. Here are some of its applications.

  • Use MergeCoin to pay for transaction fee on the native network.

If you want to use the MergeCoin network to send value on a peer2peer basis, the transaction fee has to be paid in MGC. The transaction fee is used to facilitate the development of the network and motivating miners.

  • Trader MergeCoin in the markets for a profit.

Like other coins, MergeCoin can be used for trading in the exchanges. These are markets that list the coin and provide the meeting point for buyers and sellers. To trade the coin, you will need to register a trading account, verify it, and fund with MergeCoin.

You will also need to create the right currency pairs before executing a trade. For example, you can pair MergeCoin with Bitcoin to form BTC/MGC or Ripple to trade as MGC/XRP.  Remember to get some insights into trading in respective platforms.

  • Use MergeCoin to pay for government services in countries that support cryptocurrencies.

When cryptocurrencies were first unveiled, many governments felt threatened. They held the view that the digital coins were unnecessary disruption and required to be blocked using all possible ways. However, this view is changing and some jurisdictions are now allowing people to pay government services using digital coins.

One such jurisdiction is Arizona. In April 2018, Arizona passed HB 1091 that allows residents to pay taxes using cryptocurrencies such as Bitcoin and MergeCoin. When users pay taxes with the digital coins, they are converted to fiat and credited in their tax accounts.

  • Use MergeCoin to pay for goods and services.

The fast-growing digital space is attracting a lot of traders who are out searching for more effective methods of facilitating payments. If you have some MergeCoin, simply look for the store that accepts them for direct payment. If only a different coin is supported, consider converting MergeCoin to the accepted coin to complete the payment.

  • Buy the native coins to save your money.

If you save funds in a bank, the transactions and stored value are known to many entities including the cashiers, bank management and the political administration. You cannot do anything privately. However, MergeCoin allows users to buy the native coins and save their money anonymously.

NOTE:  While the MergeCoin structure and performance in the market have been impressive, the community is concerned about the inactivity from the market starting from May 2018. Therefore, it is important to follow the best practices when investing or joining the network.

First, you should not invest all your funds in the network. It is advisable to spread over a number of cryptocurrencies. Second, you should compare the network with others offering similar services. Good examples, in this case, include Zcash and Ripple.

https://coincheckup.com/coins/mergecoin

http://www.mergechain.com/Mergecoin%20Technical%20Whitepaper.pdf

 

 

 

 

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Primecoin

What Is Primecoin

The entry of cryptocurrencies in 2009 was a game changer in the world of finance. But the blockchain technology soon spread to other areas such as management of medical records and gaming.

Every new coin entering the market has been building on the previous one’s successes to help advance the blockchain niche. One such coin is the Primecoin.

Primecoin is a decentralized and peer2peer cryptocurrency designed to utilizes a unique algorithm that searches and verifies only the prime numbers. This means that though it is a proof of work cryptocurrency such as Bitcoin, it is fundamentally different in the way it runs.

  • A closer look at Primecoin

Primecoin was created in 2014 by Sunny King, a pseudonym associated with the development of another coin referred to as PPCoin. The same team is also associated with the development of proof of stake (PoS) algorithm.

The cryptocurrency’s symbol is the Greek letter psi (Ψ). The letter was selected as part of the recognition of Riemann because it symbolizes the Riemann zeta function.

If you check closely, there is a rendering used in Primecoin-Qt Windows setup. The horizontal bar helps to standardize the coin with the currency symbol convention and also symbolize the highest portraits of mathematics, Reimann.

  • The price performance of Primecoin

The price of Primecoin differed from the trajectory assumed by other coins such as Bitcoin in 2017 and 2018. However, its highest mark came early in November 2013 as others such as Bitcoin and Ethereum achieved theirs towards the close of 2017 and early 2018.

When Primecoin entered the market in July 2013, the price was $0.2. Then, it moved up to $0.8 in the subsequent week before taking a bearish trend to $0.2 toward the close of September. From November 2013, the price took a bullish trend culminating to $7.27 on November 30th, 2013.

The positive price growth did not last long. The Primecoin price took a downward trend after the 30th November peak, to reach a low of $0.7 in April 2014. The downward trend continued and pushed the price to $0.02 in April 2015. This low price persisted through 2016 and the first quarter of 2017.

Interestingly, the growth of Primecoin was relatively small towards the close of 2017. Indeed, it defied the bearish trend that many coins took between January and May 2018. In May 2018, Primecoin experienced a peak in price when it hit $3.4. Then, it dropped sharply to reach $0.5 in early October.

What is the problem that Primecoin Solves?

The use of cryptocurrencies heralded a new era where people could run transactions on a peer2peer basis. However, the blockchain networks are still facing serious issues that are making it difficult for mass adoption and growing the blockchain technology. Here are the problems that Primecoin solves.

  • Scalability issues

While the decentralization introduced by blockchain networks is one of the technological milestones of recent time, it is not without its own share of challenges. For example, the Bitcoin network requires about 50% of the nodes to agree when running transactions or voting on issues. This makes the process slow.

A closer look at some of the top cryptocurrencies in the market today reveals that they can only handle very few transactions. For example, Bitcoin can only handle 7 transactions/ second, Bitcoin Cash has a maximum capacity of 61 transactions/ second, and Stellar can only manage a maximum of 1000 transactions/ second.

When these numbers are compared to the industry leader such as Visa that can handle more than 20,000 transactions per second, it implies that blockchain platforms have a long way to go. Primecoin was created to help narrow the gap by improving scalability.

  • Security risks in cryptocurrency networks

When Primecoin was created, cryptocurrency network security had become a serious issue. The most notable attack shocked the cryptocurrency community was the Mt. Gox one that resulted to loss of more than 600,000 Bitcoins.

If you take a more recent case like the Bitcoin Gold attack, it implies that attackers are still working on identifying new methods to steal from unsuspecting clients. Primecoin targets to create a strong system that users can rely on without worrying of losing their coins.

  • High energy requirement in standard mining

The energy requirement for mining proof of work coins such as Bitcoin is very high and indeed destructive to the environment. For example, Bitcoin mining alone consumes 32TWH of energy annually. This is the same quantity of power that Denmark requires.

By the year 2020, it is expected that the energy demand to mine Bitcoin will be equal what the entire globe requires today. Primecoin targets to address the problem by adopting a different method of mining that is not energy intensive.

  • Centralization of mining

Mining is the process of confirming transactions in a cryptocurrency network for a reward. Most proof of work and proof of stake based coins have become highly centralized.

For example, Bitcoin mining difficulty has grown so much that people can only viably mine with advanced ASICs. However, the ASICs equipment is very expensive such that only the well to do in the society is able to mine and own new BTC.

Even those using proof of stake are no better because the people with more stakes have more chances of confirming transactions. Primecoin targets to make the mining platform level so that more people can be involved.

 

How Does Primecoin Solve The Problem

To address the above problems, the Primecoin founder and development team opted to take the proof of work consensus algorithm to a higher level. Here is how it works.

  • Primecoin’s proof of work algorithm targets only the prime numbers

Primecoin, like other coins, utilizes proof of work mining algorithm. However, it changed the Hashcash function used in coins such as Bitcoin and adopted a different method that searches and verifies specific types of prime numbers.

These prime numbers are the Cunningham chains and bi-twin chains. But why the two numbers only? The development team opted for the two numbers because they are relatively small and can be verified with standard grade processors such as GPUs and CPUs.

The development team also used the length of prime number chains and Fermat’s test to come up with a difficulty formula that would increase linearly as the hashing power goes up. Even with this creative method, King had to work on a method of preventing the same PoW from application multiple times.

The development team opted for a method that requires the origin of prime numbers to be visible by the block header. This requirement helps to guarantee that the solution or every block is unique.

  • Prime numbers as a factor of protecting the platform

Prime numbers are very important in cryptography because they are used in key-secret encryption systems. The longer the list of known prime numbers and as the value grows, the security of the respective encryption increases.

Understanding the prime numbers is very crucial in physics and mathematics. If you take a look at all non-prime numbers, you will realize that they can be constructed from two prime numbers. However, a prime number cannot be created from any other number. This principle was used to make the Primecoin more secure than its preceding networks.

What makes Primecoin better than it’s competitors?

By the third quarter of 2018, the number of cryptocurrencies had grown and reached 1600. This implies that the competition is becoming stuffer year after year. Here are some of the things that make Primecoin better than its competitors:

  • The Primecoin can be mined using standard GPU and CPU

By adopting the two prime numbers, Cunningham chains, and bi-twin chains, Primecoin effectively solved the problem of centralized mining and made it possible for standard miners. This means that more people can get involved to advance the course of decentralization and strengthen the network.

  • The coin has been performing very well in the market

Though the price and market capitalization has not been explosive like that of Bitcoin, it is remarkable. By mid-October 2018, the market capitalization of Primecoin was $12.4 million. This places it well ahead of others such as Bitkan with $11.8 million and Aeron that has $11.3 million.

  • Primecoin has been in the market for long and proven to be stable

The fact that Primecoin has been in the market for more than four years is an indication that most of the features have been tested and proven to work. When a new platform joins the blockchain niche, it takes about three to five years before it can be considered stable and reliable.

This is part of the reason why the community around Primecoin has been growing steadily in the last several years.

  • The Primecoin project is led by a highly enthusiastic team

The Primecoin platform is led by some of the top minds in the computing and mathematics realms. From the beginning, the team has committed to helping the industry scale the next level.

For example, they were the first to introduce a proof of work algorithm based on prime numbers and proof of stake. Now the community is looking at them for more impressive features to help catapult the coin to higher levels.

How can Primecoin be categorized?

Primecoin is a unique cryptocurrency designed to help give the blockchain niche a new approach. By using a unique algorithm that builds on proof of work consensus protocol, the Primecoin founders were able to advance decentralization and spur the next generation of cryptocurrencies.

However, it is the ability of the team to apply the concept of prime numbers keeping the network secure that has attracted more admiration. People using the network to send value or hold funds can rest assured that their assets are safe from attacks.

What’s Primecoin’s vision on Security?

To win more users and demonstrate value in the market today, cryptocurrencies have to start with security. The cases of attacks such as Bitcoin Gold when it was only a few days old and others such as Mt. Gox sent shivers in the systems of cryptocurrency enthusiasts.

The vision of Primecoin on security is to become the most secure platform in the crypto industry.

To achieve this, the development team adopted the unique proof of work algorithm that searches and verifies specific types of prime numbers. It also uses advanced encryption and regular system updates that help to identify gap and address related issues before attackers can take advantage.

Examples of Primecoin’s use cases / applications

Most cryptocurrencies developed within the first five years of Bitcoin introduction largely targeted facilitating payment without involving third parties. Primecoin was no different. Here are the main use cases of Primecoin.

  • Paying for goods and services in stores that accept prime coins. Like Bitcoin or Ethereum, Primecoin is used as a coin for sending value. You only need to identify a store that accepts Primecoin to be able to make a direct purchase.
  • Paying transaction fees when sending value on the native network. If you decide to trade Primecoin in the markets such as Bittrex and Binance, the charges can be paid in Primecoin.
  • Sending value across the globe. If you are on the Primecoin’s network, it is possible to send value on a peer2peer basis. Note that even if you are in different time zones, the process of sending value is simple, direct, and cheap.
  • Trading in the markets. One method of making money using cryptocurrencies such as Primecoin is trading them in the markets. Note that you can only trade the coins in the markets after opening trading accounts and forming cryptocurrency pairs.
  • Holding as an investment. If you save cash in the bank, the chances are that a lot of people know about it. This means that in the event of a court battle, your funds can easily be frozen through a court order.
  • However, Primecoin is a cryptocurrency network that is decentralized and all users’ details encrypted using the latest technology. It is one way of investing without worrying about third party seizures.

http://primecoin.io/

http://primecoin.io/about.php#what-xpm

http://primecoin.io/bin/primecoin-paper.pdf’

https://coincheckup.com/coins/primecoin