Author: Norah Amboko

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Dynamic

What is Dynamic?

Dynamic is a decentralized and open source proof-of-stake coin created to ensure that every person in the society can easily access and use the digital coins. After launching Bitcoin, Satoshi Nakamoto opened the doors to faster adoption of cryptos in different niches. However, the price of cryptos has been swinging to the extremes because they are not regulated.

The Dynamic coin was created by Suzuki Nakamura who built on the existing technology from major coins such as  Bitcoin and Ethereum. The coin uses 2XSHA-256 proof-of-work algorithm and has an unlimited number of coins. It is the first coin with no halving and no diminishing rewards.

  • The Dynamic coin price history

When Dynamic crypto entered the market in October 2016, its value was $0.16. The value dropped by about 1100% to $0.08 by the close of October before springing back to $0.19 in early November 2016.

By the close of January 2018, the value of Dynamic had dropped to $0.027 before shooting up to $0.25 in mid-February and falling to $0.035 by the close of the month. Again, the value took an upward trend hitting a high of $0.4 on March 23rd, 2018 and continued on an upward trend to reach $0.9 on May 12th, 2018.

The price remained at $0.99 between May and October 15th when it rose to $1 and immediately crashed to $0.0029. This was a major drop of about 34,000%. Note that the drop did not end there. By mid-November 2018, the value had gone down to reach a low of $0.000064.

As a coin that is dedicated to addressing volatility, the price changes demonstrated above has made the community wonder whether the strategy is indeed workable. It will be interesting to see how the price behaves in the coming years.

What is the problem that Dynamic solves?

When the high number of coins entering the market is mentioned, there is a tendency to think that everything is well. But that is wrong. A closer look reflects that the niche is reeling from serious bottlenecks that are limiting its growth. Here are some of the issues that Dynamic solves.

  • High volatility

The problem of high volatility has become a major challenge for most cryptocurrencies in the market today. If you take a look at the performance of the fiat currencies, their stability is maintained through a system of printing and buying currencies from the market. This helps to keep the price stable and reliable. But there is no control when it comes to cryptocurrencies.

The coins are controlled by the forces of the market only. This is the reason why an announcement about a partnership between a crypto and a highly rated company is likely to send the value up. Other factors that affect the value of the coins include regulations, new technology, and competition.

Dynamic targets to make its native coins stable and ensure that more people can use it without worrying that the coins will lose value.

  • Poor miner motivation

Mining is the process of solving complex mathematical puzzles in cryptocurrency networks and adding new blocks to their public ledgers for a reward. But miners also help to secure the network, confirm transactions, and vote on management decisions. To ensure that miners support the network, they need motivation. In many pioneer networks, such as Litecoin and Bitcoin, the mining rewards halve every four years.

As the rewards halves, the miners are likely to lose interest because they do a lot of work while the reward keeps declining. Some of them are likely to shift to other coins while others could conspire to harm the networks. The Dynamic system removed the halving principle so that rewards are controlled by the market forces only.

  • Poor scalability

The architecture of blockchain platforms is anchored on effective implementation of consensus. This means that for new blocks to be added to the public ledger, many nodes have to come to an agreement. This results in very low transaction outputs for every second.

If you take the case of Bitcoin, the largest network in the niche, its system can only manage 7 transactions per second. Even other top leaders in the niche such as Ethereum can only handle 20 transactions/ second while Bitcoin Cash can manage 60 transactions every second. Now, compare the transactions with industry leaders such as Visa that can handle in excess of 20,000 transactions every second.

This demonstration indicates that the cryptocurrencies are way below the expectations of the society. The community is looking forward as the technology unfolds to see whether the crypto networks will manage to address the difference.

How does Dynamic solve the problem?

Suzuki Nakamura, the Dynamic founder, opted for a multi-approach strategy to address the above issues. Here are the strategies used in the Dybamic platform.

  • The 15 seconds block time

In the Dynamic’s white paper, Suzuki explains that the 15 second block time was adopted to help allow blazing fast transactions. The fast block time is coupled with an unlimited block size to ensure that the system can handle more transactions without worrying of high volume seasons.

If the strategy works well, the Dynamic scalability could be the best in the globe. For example, the block size of Bitcoin is only 1MB and it can only be mined every ten minutes. For Ethereum, the largest block size was 33416 bytes that was recorded in January 5th, 2018. Even with the impressive block time of 20 seconds, Ethereum still lags behind because it only supports up to 20 transactions/ minute.

The Dynamic model was created after realizing that the block size is a major limiting factor that could ultimately threaten the entire industry. However, the Dynamic system is yet to test the effectiveness of the unlimited block size because the volume of users is yet to reach that of top networks such as Ethereum.

  • Unlimited coin production

The idea of limited coin production in crypto networks is meant to help maintain the value of their native coins high. For example, only 21 million Bitcoins will ever exist in its network. For Dynamic, the target is to make its native coin operate as close as possible to the fiat currency. The founder wanted to ensure that the value remains stable by progressively releasing new coins when the price goes up so help stabilize it.

The release of new DMC coins is dependent on the price in the market. The Dynamic system analyzes the market and can release 1DMC or as many as 1,000,000 per block. When the price goes down, the reward is reduced. The Dynamic development team expects to control the price of the coin so that users do not suffer from extreme price swings.

  • The Global Reserve System

This is a non-profit organization that is used to support the Dynamic platform by ensuring that the price remains as stable as possible. The reserve has a large volume of DMC and BTC that are capable of buying and selling huge quantities of DMC to stabilize the price.

  • Decentralization

Suzuki indicates that the bottom-line to the success of the Dynamic system is decentralization. He further points out that the network uses proof of stake model that ensures users with some stake in the system can mine the network and help with its governance.

Even with this argument, the community is concerned that the major decisions are largely made by the Global Reserve System. For example, when the price of DMC falls or increases the Global Reserve System swings into action and releases new coins into the market.

The Dynamic white paper does not demonstrate clearly how the stakers in the platform help with price management, transactions or even governance.

What makes Dynamic better than it’s competitors?

Dynamic was introduced into the market when the competition was approaching the peak. Here are the main things that make Dynamic better than competitors:

  • The Dynamic system allows users to stake or invest without worrying about price volatility.
  • The Dynamic system allows users to join and own the platform. Unlike the conventional banking systems that make users feel passive, the dynamic platform employs proof of stake protocol that allows stakers to participate in decision making through consensus.
  • It is a reliable method to invest and send value without worrying about third-party seizures. By employing advanced encryption, the Dynamic system allows users to operate in total anonymity without worrying of getting discovered by unauthorized users.
  • The system operates as a completely decentralized network of sending value. This means that transactions are confirmed by nodes spread in its system as opposed to centralized systems that come with a high risk of failure or attacks.
  • Since transactions are completed on a peer2peer basis, they are cheaper and faster because the profit-seeking organizations are bypassed. This makes the platform more convenient for sending value both locally and internationally.

NOTE: While the commitment of the Dynamic cryptocurrency and platform are impressive, the effectiveness of the model to address volatility is wanting. In the Dynamic white paper, the founder and development team indicates that more coins will be released into the market to control the price.

However, the impact is likely to see a lot of coins getting into the market and crashing the value of the coin. This is what happened on October 17th, 2016. The development team released large quantities of Dynamic coins into the market with the intention of controlling the price. However, the impact was a sudden crash and progressive deterioration of the price to $0.000063 by mid-November 2018.

The model that the founder wanted to use to control the value of Dynamic has become the primary driver of high volatility. This approach has made investors take a wait-and-see approach because the coin could result in major losses.

How can Dynamic’s be categorized?

Dynamic is a highly ambitious crypto project that targets to address the pressing issue of high volatility. The founder and his development team wanted to create a platform that closely resembles the fiat currency system so that more people can easily join and enjoy blockchain related benefits.

What is Dynamic’s vision on security?

When the Dynamic coins entered the market, the crypto community was still coming to terms with the DAO Child attack that rocked Ethereum in mid 2016 and caused a major division. To prevent similar or more serious attacks on the Dynamic system, the founder came up with the vision of making the network the most secure in the industry. Here are some of the methods used to keep the system secure:

  • Advanced encryption that helps to keep the user info private.
  • The network uses proof of stake protocol that helps to promote even distribution of coins to reduce the danger of 51% attack.
  • The development team works on regular updates that help to seal all gaps that can be used by attackers.

Examples of Dynamic use cases/ applications

To know the value of a cryptocurrency and crypto network, one of the best methods is following the applications in the society. In the case of Dynamic, the following are the main use cases:

  • You can use the Dynamic coins to pay for goods and services in stores that support it.
  • The native DMC coins can be traded in the crypto exchanges. Note that you will be required to join an exchange that lists the Dynamic coin, create a crypto pair, before executing a trade.
  • If you want to send money to another country, one of the reliable methods is using a cryptocurrency such as DMC. Note that the recipient will need to have a wallet that supports Dynamic coins.
  • As a proof of stake cryptocurrency, you can mine the network to get rewarded with native coins.
  • The Dynamic coins can be used to pay taxes in countries that support crypto coins.
  • Like other coins in the market, the Dynamic platform can be used as a method of saving funds. You will only need to buy the coins and sell them when in need cash.

However, it is important to note the negative price movement despite the described system for maintaining stability. If you need to invest in the coin, it is advisable to compare Dynamic with other emerging tokens and only commit a small amount.

 

http://dynamiccoin.org/DMC%20White%20Paper.pdf

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

 

 

 

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Breakout

What is Breakout?

Breakout is a decentralized and open-source cryptocurrency of the Breakout blockchain. The breakout platform and its native platform were founded and launched by a Costa Rican company referred to as Breakout Services, Limitada.

The main goal of creating the Breakout coin was to reach the gaming community and present it with a reliable, secure, and easy to use currency. The development team was concerned that though the blockchain technology was advancing in other areas at a fast rate, the gaming niche was lagging behind.

The Breakout blockchain uses both proof of stake and proof of work protocols to make it possible to support different coins and reach multiple niches.

  • The performance of Breakout coin in the market

When Breakout first entered the market in July 2016, the value was $0.08. Then, it dropped to $0.045 in the subsequent month of August and kept declining to hit the lowest point of $0.018 in December 2016.

Starting from early 2017, Breakout started showing signs of recovering. In March 2017, the value grew to hit $0.03 and continued on an uptrend to reach $0.04 in April before hitting a peak of $0.3 in June 2017.

In July, the value dropped to $0.099 before assuming a bullish trend that culminated to the value breaking through the $1 mark and reaching $1.24 on 9th January 2018. This was the highest mark in the coin’s history. Note that the positive show did not last.

By the close of January 2018, the value of breakout had dropped to reach $0.64 before rising marginally to $0.7 at the beginning of March and resuming the bearish trend until the third quarter of 2018. By the close of October, the value of BKR was $0.04. The community is optimistic that the coin value will finally take an uptrend as more people search for a reliable gaming payment and support system.

What is the problem that Breakout solves?

Since 2009 when the blockchain network was launched by Satoshi Nakamoto, more people have started taking note and coming to the niche. But it has encountered serious problems that risk suppressing growth and success. Here are some of the problems that Breakout solves.

  • Centralization of financial services

Centralization of financial services involves relying on a single point to run all transactions in a system. They are systems such as banks and credit card companies that have centralized systems of handling funds, data, and transactions. This is the main structure of most financial systems in the industry today.

The main issue with centralized financial services is the high risk of failure. This failure can result from mismanagement that culminates to bankruptcy or cyber attacks. If the customer documents and info in the banking system get attacked by a malware such as ransomware, it would be difficult to prove that you had deposits in the system. The Breakout system targets to address the issue by creating a system that is free from third-party attacks.

  • Poor adoption of cryptocurrencies in the market

While the idea of cryptocurrencies has been expanding rapidly, application at the local level has been very poor. At this point, one would expect to find many stores supporting crypto coins because of the long list of coins in the market and the speedy nature of tokens uptake in the market. However, you can walk an entire street and fail to get a store that accepts payment in digital coins.

To address the issue, Breakout targets to expand the technology to the gaming niche. The blockchain also targets to reach other segments with additional coins.

  • The high cost of transactions

If you want to send value through the banking system, the cost is very high. This is because banks and financial companies are profit based and have to look for ways and means of optimizing return to investors. Besides, they also have to meet expenses such as rent, wages, insurance, security, and compliance with the law.

  • Centralization of mining services

The design of blockchain networks uses miners who help with all the work in the system. They confirm transactions and use consensus to make decisions that help to improve the networks. More importantly, they help to release new coins into the network.

Though mining was intended to help advance the concept of decentralization, the development of ASICs mining equipment has resulted in centralization and raised the risk of 51% attack in crypto networks.

How does Breakout solve the problem?

To address the above issues, the Breakout platform adopted a multi-pronged approach that targets to promote decentralization and make the cryptos easily accessible to more people. Here are the methods and features used by Breakout:

  • Total decentralization

The Breakout system operates as a completely decentralized system. Instead of relying on a centralized management the way banks or credit card companies work, the Breakout system relies on a system of nodes spread in its network across the globe.

When a user initiates a transaction to send value, it is picked by nodes referred to as miners. They follow the sender to confirm whether he has ample coins to send and allow the transaction to complete. They also add new blocks into Breakout public ledger.

Total decentralization implies that Breakout does not have a single point of failure. The nodes spread in the Breakout system store the information in their computers. Even if one computer is attacked or node drops off, the user information will still be available from other nodes.

  • Breakout supports multiple coins

To promote faster adoption of cryptocurrencies, Breakout was targeted at the gaming niche. As more crypto networks target the financial services, areas such as gaming have been left behind. The Breakout coin targets to be the ultimate coin for the gaming niche.

To facilitate better uptake of cryptos in the industry, the Breakout also hosts other coins such as the Sister Coin, Atomic token, The Deck, and Beakout Stake.

  • Operates as a hybrid of proof of work and proof of stake protocols

Many crypto networks in the market today rely on proof of work protocol. Though it has very impressive features, it has also demonstrated key weaknesses such as allowing mining through ASICs. To make the Breakout network better, the development team opted to use a hybrid model of proof of work and proof of stake protocols.

Proof of work consensus algorithm helps to keep the Breakout platform secure while the proof of stake protocol is used to facilitate even distribution of coins. Proof of Stake protocol also helps to keep the platform secure because users who have some stake are less likely to conspire to harm the network.

What makes Breakout better than it’s competitors?

When Breakout entered the market, it met a growing list of cryptocurrencies that targeted to win a bigger market share. Here are some of the things that make Breakout better than competitors.

  • The Breakout platform allows users to send value and run financial transactions anonymously. This means that you can send value or invest without worrying about third parties knowing about your details.
  • The Breakout system targets a gaming niche that has been less trodden. This implies that it is likely to enjoy near monopoly status and grow rapidly as gamers enjoy the benefits of direct and cheaper payments.
  • The Breakout coin allows users to join and own the system. The decentralized system implies that the platform is not owned by the founders or developers. .Rather, all the decisions are made by the nodes spread in its system. If you join the system by purchasing some stake, you will be called to vote on key governance issues that determine the direction to be taken by the platform.
  • The Breakout system provides users with the total freedom to send value any time of the day or night. Unlike the banking system that limits people to only work during the day and remains closed in holidays and weekends, Breakout system is different. As far as you have ample coins on the network, there are no limitations. You can send any amount during the day, at night, weekends, and even holidays.
  • The Breakout is led by a very aggressive team. To help the niche advance to the next level, the Breakout team is always active and looking for better ways to keep the platform safe and delivering value to users on the platform.
  • The combination of proof of stake and proof of work protocols has helped the Breakout system enjoy high security. Since inception, no successful attack has been reported in the platform.

How can Breakout’s be categorized?

Breakout is a unique cryptocurrency and a platform designed with the primary goal of advancing the original Satoshi Nakamoto’s principle of decentralization. Though there are many issues standing on the path of successful adoption of blockchain technology, Breakout demonstrated that they can be overcome through impressive features such as the combination of proof of stake and proof of work protocols.

What is Breakout’s vision on security?

The Breakout’s vision on security is to become a highly secure platform that all users can join and utilize without worrying that they will lose investment to attackers. Here are some of the methods used to keep the platform secure.

  • The Breakout platform was designed after a thorough analysis of other networks to ensure that causes of attacks were eliminated. This is why some communities consider it to be a better option compared to pioneer coins such as Bitcoin and Litecoin.
  • The development team reviews the Breakout system and other networks to pre-identify vulnerabilities and address them well before they can be used by attackers.
  • The system uses advanced encryption that helps to prevent user info and transaction details from third parties such as government agencies.
  • The combination of proof of work and proof of stake protocols has helped to facilitate even distribution of coins to prevent the danger of 51% attack.

Examples of Breakout use cases/ applications

A cryptocurrency network is as good as the people who support it. The Breakout development team has been seeking partnerships to facilitate faster adoption and use in the industry. Here are the main applications.

  • Breakout coin is a coin of the gaming industry. This means that you can use the coin to pay for games played online or even downloadable options to play with a home computer. The gaming community prefers the coin because payment is peer2peer and direct.
  • If you are running transactions in the Breakout platform, you will be required to pay a small fee that must be effected in BRK. This fee goes to support miners who help confirm transactions and facilitate the development of the network.
  • If you want to send funds abroad, Breakout coin is a better option compared to the standard fiat currencies. Because there are no centralized organizations such as banks used when sending value, the transactions are fast and cheaper.
  • Like other coins such as Bitcoin, Breakout can be used to pay for goods and services in stores that accept it. You only need to look for online or conventional stores that allow payment with BKR to make a purchase. Note that in the event that stores available only support different coins, it will also be possible to make a purchase by converting BKR to the supported crypto.
  • For crypto traders, Breakout can be traded in the market like other coins such as Bitcoin. Note that trading Breakout will require identifying a supporting exchange and registering for a user account. You will also need to create appropriate trading pairs before executing trades.

To trade profitably, it is important to start by learning how the crypto market works. Most of the digital coins are affected by high volatility because the coins are not regulated in law. It is also crucial to follow the best practices such as only using a small amount when trading in the market as opposed to the whole amount.

  • The Breakout coin is a reliable method of paying for taxes in states that support cryptos. As more administrations come out to support blockchain technology, some are allowing users to pay their taxes using digital coins. A good example is Arizona.

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