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.
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