Author: Norah Amboko

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Blocknet

What is Blocknet?

Blocknet also referred to as BLOCK, is a decentralized and peer2peer platform-as-a-service protocol designed to help nodes in different blockchains connect to each other. The cross-chain communication opens the door to multi-chain architecture that will help to take the cryptocurrency industry to the next level. Call it decentralization of decentralized networks.

Blocknet was founded by Arlyn Culwick and Dan Metcalf in 2014 through forking of PIVX. However, it was not until September 2017 that the development team launched the service nodes. Having worked in the Bitcoin and other blockchain networks as developers, the founders believed that the blockchain niche was likely to hit the rocks for poor interoperability. The fast-growing numbers of cryptocurrencies that operate as completely separate ecosystems have confirmed the Blocknet founders’ worries.

Since its launch, the price of Blocknelt tokens (BLOCK) has been moderate. Between launch in 2014 and March 2017, the price of BLOCK remained well below $0.06. Then, it rose sharply by more than 111,500% on 6th January 2018 to hit the highest point in its history, $56.22.  The market capitalization also rose sharply to hit a high of $278.8 million during the same period. But these gains were short-lived. Between January and April 2018, the price sank to $13 and then fell further to $5.5 between June and August 2018.

What is the problem that Blocknet Solves?

Blocknet was introduced to address one core problem in the blockchain sector; poor interoperability. David Schwartz, the Chief Technology Officer at Ripple, explained that the biggest obstacle to blockchain growth is lack of interoperability.

Starting from 2009 when Satoshi Nakamoto released the first decentralized network, the society has been very fast in adopting blockchain based solutions. More stores are now accepting cryptocurrencies while businesses are considering new tokens as a crucial model of raising transaction fees. But everything appears to be suddenly slowing down.

In the year 2017 and early 2018, most cryptocurrencies experienced a surge to levels that could only be previously dreamt of. From BLOCK to Bitcoin, the growth in market capitalization and price was huge. Deeper into 2018, the thrill is ebbed out and investors started counting losses. Everything, from price to market capitalization, started slowing down.

Today, a person with Bitcoins but wants to send funds to another at Ripple will be required to be a member of both networks. This is very inconveniencing. To transfer value from one platform to another, the main route is using the exchanges. These are centralized and profit based platforms that work like the forex markets. The lengthy process forced by poor interoperability of cryptocurrency networks results in the following serious problems;

  • High transaction costs.
  • Transactions require a lot of time to complete.
  • High risk of getting attacked at the centralized exchanges.

The impact of these problems is slow but a sure loss of interest from the community. A new generation of blockchain networks is required to foster cross-chain operations. This is why Blocknet was created. It targets to make the blockchain network interoperable, modular, and mobile.

How does Blocknet Solve the problem?

The core goal of Blocknet is becoming the internet of blockchains by enhancing communication between one network and another. This interoperability is achieved through the following components and key features.

The key interoperability components

  • The XBridge: This is a blockchain router that acts as the main premise of the Blocknet system. XBridge allows the nodes in one blockchain to connect to others in a different platform. It facilitates the implementation of cross-chain atomic swaps and execution of smart contracts.
  • The coin exchange protocol: To implement cross-chain swaps using XBridge, Blocknet uses coin exchange protocol. The protocol helps to make transactions faster by allowing the nodes in different blockchains to operate on a peer2peer basis. There is no need for third-party intermediaries.
  • The inter-chain data transport: This is the last component that used by Blocknet to foster interoperability. This data transport protocol helps to power smart contract execution and features many sharing capabilities for different chains.

The decentralized exchanges

To change your funds from one token to another, the main method used is the exchanges. This requires opening a trading account, verifying it, and picking a trading pair with the targeted coin. It can be very complicated depending on the selected exchange. However, a decentralized exchange provides nodes with a direct way of sending tokens right from the user’s wallet.

Blocknet released the beta version of its decentralized exchange on March 2018. The exchange allows users to operate without involving the centralized exchanges. The Blocknet DEX has a number of benefits.

  • Unlike the centralized exchanges that provide a limited number of trading pairs, decentralized exchanges allow users to pair BLOCK with any supported token. This guarantees users of a limitless number of trading pairs.
  • Unlike the centralized exchanges, Blocknet’s decentralized exchange does not need the use of know your customer (KYC) strategies. This is crucial in enhancing the anonymity of users in a blockchain.
  • Users have absolute control over their funds on the Blocknet network. Because you are not required to send the native tokens to a centralized account, everything runs from the wallet. Here, you also need to take every precaution to avoid sending the tokens to the wrong addresses.

The inter-chain blockchain services on the Blocknet system allows users to create decentralized applications (DApps) that make it possible to combine multiple features from various projects or just one of them. Users can also include service monetization functionalities that allow nodes on Blocknet network to charge those from other networks.

Blocknet’s decentralized exchange is not a monopoly in the blockchain niche. Many centralized exchanges are in the process of converting or opening branches to operate as completely decentralized exchanges. Good examples of other decentralized exchanges include EtherDelta, ForkDelta, Komodo BarterDEX, and BitShares.

The Blocknet’s token

The Blocknet token (BLOCK) is an important component of the network governance system. The platform uses proof of stake (PoS) consensus algorithm to help with decision making. The governance model relies on three types of nodes:

  • Service nodes: These nodes are used to help gather and distribute the trading fees. For a user to run a service node, he/she is required to hold at least 5,000 BLOCKs and ensure that their node computers are on and running most of the times.

The Blocknet development team requires service nodes to further run full node wallets of the coins they want to support. This design helps to ensure that the trading fee received is optimized. About 18% of the trading annual returns from block rewards are distributed to the service nodes.

  • Staking nodes: These nodes are very helpful in confirming the Blocknet’s transactions. To operate as a staking node, you are required to hold any amount of BLOCK and keep the Blocknet’s wallet open. The staking tokens receive between 9% and 14% annual returns from block rewards. If you target using Blocknet’s decentralized exchange, the network requires you to run a trading account and synching the wallets of the targeted tokens.

What makes Blocknet better than it’s competitors?

The design of Blocknet platform was informed by the need to change the blockchain niche. While its growth will no doubt help to grow the entire industry, the following core benefits make it stand out from the peers.

  • Users serving as nodes in the Blocknet system can easily send value across different networks. The Blocknet XBridge allows them to reach other networks and send funds with ease on a peer2peer basis. In other blockchains such as Bitcoin Cash, users have to join several networks to send value and use exchanges to convert their tokens to different exchanges.
  • Because Blocknet does not use centralized and profit-seeking exchanges, sending funds both in the network and across different blockchains is very cheap. Users only need to pay a small transaction fee to motivate the miners who confirm transactions on the network.
  • Though the price of BLOCK has not moved at the pace like that of other top networks such as Bitcoin and Bitcoin Cash, it is still impressive. Between 2014 and August 2018, the value growth stood well over the 10,000% mark.
  • The blockchain network has been in the market for more than 4 years. This is a clear demonstration that the platform is very stable compared to the newer networks. New cryptocurrencies are feared by the community because they can turn into a dump and sell models.
  • The value of Blocknet is likely to grow exponentially when all the features are fully implemented. Because other platforms will be relying on Blocknet network for various services, its value is likely to grow exponentially as demand shifts upwards from the growing community.
  • The development team at Blocknet is highly committed to advancing the network. While some development teams copy and replicate features of other networks, Blocknet’s development team is involved in progressive research to pioneer new features that are helping to define the blockchain network.

How can Blocknet be categorized?

Blocknet is the next generation internet of the blockchains. The design and commitment of its development team have demonstrated there is a ray of hope for the blockchain networks. Many cryptocurrencies are either targeting to work with Blocknet or crafting a similar model to remain relevant and indeed profitable.

What’s Blocknet’s vision on Security?

The main Blocknet’s mission on security is to guarantee users of optimal security of their tokens and personal information when sending tokens across the networks. When Blocknet was created in 2014, hackings, especially on the exchanges, had become a serious threat to the blockchain system. From Mt. Gox to Bitfloor, no centralized exchange was considered safe. To guarantee users of optimal security when operating on the network, here are the methods Blocknet utilizes.

  • The project relies on proof of stake (PoS) for mining and governance. This helps to distribute the tokens evenly to avoid the danger of 51% and DDOS attacks.
  • The Blocknet’s development team is always working on updates to close gaps and keep the network more secure.
  • The Blocknet decentralized exchange helps to eliminate the centralized exchanges that have become the center of interest for attackers.

Examples of Blocknet’s use cases / applications.

The architecture of Blocknet that targets facilitating cross-chain operations make it have more use cases compared to the standard blockchains. Here are some of them.

  • Use BLOCK to pay taxes in your country or state. If your country or state allows residents to pay taxes in cryptocurrencies, BLOCK is a great option to clear the dues. Some countries that allow residents to pay taxes with cryptocurrencies include Singapore and the State of Arizona.
  • Trade BLOCK in the markets. BLOCK, like other cryptocurrencies, can be traded in the exchanges. You can do this in the decentralized exchanges of the common markets. In the conventional cryptocurrency markets, you will be required to sign up for an account and pair BLOCK with a preferred coin such as Bitcoin or Ethereum.
  • Pay transaction value on the Blocknet network. When sending value on the Blocknet network or running other types of transactions, a small fee is charged. This fee is used to motivate the nodes that help to verify the details of the transactions and adding new blocks in the public ledger.
  • Use Blocknet network to send value to nodes in other blockchain networks. If you target to send value to other networks without joining then, Blocknet is a great option. The XBridge protocol makes it possible for nodes to communicate and send value directly without relying on centralized and high-risk parties such as exchanges.
  • Use Blocknet network as an investment and saving platform. Many people coming to cryptocurrencies want to have some assurance that their personal information and transaction details will not be accessible to third parties. But even the centralized exchanges still make it easy for your details to be accessed by third parties. However, Blocknet’s decentralized exchange ensures that trading happens right from your wallet where you have absolute control. Therefore, there is no one who can pull out your details.
  • Blocknet tokens can be used to pay for goods and services in online stores. Like other cryptocurrencies, you can use BLOCKs to pay for products in stores that accept them. Note that with the direct communication and decentralized exchange system, even the stores that only accept other tokens will be only a click away.

https://coincheckup.com/coins/Blocknet

https://blocknetprotocol.com/

https://medium.com/@theblocknetchannel

https://steemit.com/@theblocknet

https://github.com/BlocknetDX/blocknet-docs/blob/master/blocknetFAQ.md

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Viacoin

What is Viacoin?

Viacoin is an open source and decentralized cryptocurrency derived from Bitcoin protocol in 2014. It features Auxiliary proof of work (AuxPoW) and Segregated Witness (SegWit) technologies that help to make transactions scalable, cheaper, and more secure. The project was one of the early efforts used to remedy the flaws exhibited in Bitcoin.

The project was started in July 2014 by a person/persons only referred as BTCdrak after forking the Bitcoin core. Another renowned Bitcoin developer, Peter Todd, was introduced to the team as the chief scientist and Advisor. Todd is believed to be the main face of the project but only reintroduced himself as an advisor for legal reasons.

After launch, the price of Viacoin remained well below $0.05 mark until March 2017. The only short instance when it went above that mark was around 10th August 2014 when the price rose to $0.28 before retracting to the original range. The price grew with more than 13,200% to hit the highest mark in its history, $6.65, early January 2018.

The project’s focus has seen new features getting introduced progressively to improve the network. Some of these features include the Ethereum Virtual Machine (EVM), Schnorr signature and non-atomic flushing

What is the problem that Viacoin Solves?

When Bitcoin was introduced into the market in 2009, it demonstrated that it was possible to run completely decentralized payments and transactions. But Satoshi Nakamoto did not expect the demand for the blockchain based payments and transactions to skyrocket in the subsequent years. In just a few years after launch, Bitcoin and other early cryptocurrencies were experiencing serious limitations that included the following;

Poor scalability

Most early blockchain projects especially those based on proof of work (PoW) algorithm are very slow because every node or most of them have to be involved in confirming transactions. Bitcoin can only support 7 transactions/second, Ethereum 25 transactions/second, and Bitcoin Cash 61 transactions/second. Even the cryptocurrency with the highest rate, Ripple, can only reach 1500 transactions/second which is a far cry from top industry leaders like Ripple that can hit a whopping 24,000 transactions per second.

Poor cross-chain interoperability

A closer look at most cryptocurrencies and associated projects reveals they provide diverse benefits that users would want to enjoy. But cross-chain interoperability has been a serious obstacle. A person in the Bitcoin network would require joining the Ethereum, Ripple, or Bitcoin cash networks to send value there. This makes the process very expensive, inconveniencing and unrealistic in most of the cases.

Decreasing mining rewards

The block reward of most proof of work (PoW) algorithm based cryptocurrencies halves after a couple of years. At Bitcoin, the reward halves every four years. The implication is that miners are likely to get demotivated as the rewards continue decreasing. The miners could opt to walk away leaving the network without ample miners to confirm the transactions.

How does Viacoin Solve the problem?

When Viacoin founders set out working on a new platform to address the outlined issues, their focus was not to just provide a standalone solution, but ensure that the platform could easily get improved over time. Here are some of the key methods used to address the problems.

Segregated Witness (SegWit)

Segregated Witness is used to shrink transaction sizes to help the network cope with UTXO (Unspent Transaction Output) growth. SegWit is a transaction where the witness data is separated from the main transaction. The technology targets raising transaction throughput per block and simultaneously helping blocks to sync faster.

SegWit application at Viacoin is also targeted at fixing malleability. This implies that more scripting will be possible and, therefore, adding new features such as bidirectional payments, atomic swaps, and even lightning networks is relatively easy.

Merged mining (AuxPoW)

Merged mining at Viacoin was created to help increase the utility of the mining power of the user’s system. This means that with the same mining power, users are able to mine more Scrypt based coins. For example, you can mine Viacoin and another coin such as Litecoin without lowering the mining power.

Every hash that a miner generates can be used for the selected cryptocurrencies. The Auxiliary Proof of Work (AuxPoW) block closely resembles the common Bitcoin block but features two main differences;

  • The hash of the block header does not meet the blockchain’s difficulty.
  • It includes additional data elements indicating that the miner who created the block mined the parent blockchain and that the respective work meets the aux blockchain difficulty level.

Implementation of AuxPoW implies that Viacoin miners will be motivated to continue mining even as the rewards go low because they can mine other coins of preference. This approach was considered forethought that many players were unable to see it when Viacoin was created. However, it has now become an important premise in the industry as rewards in many cryptocurrencies continue ebbing out.

The lightning network

Lightning network at Viacoin is an additional network operating layer on top of the Viacoin blockchain. The layer utilizes smart contract functionality that targets enabling instant payments across a network of participants. This is very important to increasing transaction throughput because most transactions are processed outside the consensus ledger.

Lightning Networks further allows the execution of exceptionally low transaction fees. The Viacoin white paper refers to the Lightning Network as the Silver Bullet. The payment under the system is implemented using a script that enforces atomicity through decrementing time-locks.

Blocknet protocol

In May 2018, Viacoin announced that it was ready to adopt and implement Blocknet Protocol. This is a true peer2peer protocol between nodes on different platforms. Once implemented, the protocol will enable the delivery of any type of digital service from a node in one platform to another node in a different platform.

The application of Blocknet Protocol will include three key things; a blockchain router (xbridgep2p), an inter-chain data transport, and a coin exchange protocol. The protocol will be very helpful in monetization, microservices, decentralized applications (DApps) and protocol related services.

What makes Viacoin better than it’s competitors?

The blockchain niche has become highly competitive as more networks continue joining the industry. From the beginning, Viacoin targeted positioning itself at the front of others. Some of the things that make Viacoin better than competitors include;

  • Viacoin uses more advanced technology that makes the network faster compared to other cryptocurrencies. For example, it is about 25 times faster than Bitcoin. High scalability implies that more traders including those handling a lot of transactions can use it without suffering backlogs.
  • The cryptocurrency is led by a very aggressive team that progressively adds new features to improve the system over time. The team comprising of blockchain experts and financial advisors has seen the network and its community grow progressively over time.
  • As a peer2peer network, Viacoin is better than centralized organizations such as banks because transactions are completed faster and at a lower cost. It also employs advanced cryptography to help users run transactions without worrying about third-party seizures.
  • Having been established in 2014, Viacoin is considered more stable compared to the newer models. The cryptocurrency community considers a blockchain network to be more stable after clocking more than three years in the market. By this time, most of the features will have been tested and their stability proven.
  • Viacoin performance in the market has been impressive. Though its price has not been explosive the way other cryptocurrencies such as Bitcoin and Bitcoin Cash have performed, the progress is impressive. This has resulted from listing in more markets and the fast-growing community.
  • The platform is completing the application of Blocknet Protocol that will help with cross-chain communication in the market. This is a great score at a time when sending value from one network to another has become a serious issue hindering blockchain growth.

How can Viacoin be categorized?

Viacoin is a secure, scalable, and upgradable cryptocurrency network. The segregated witness technology at Viacoin makes it easy to implement new features and changes for progressive improvements. This means two crucial things that will help to determine the progress of Viacoin in future;

  • The network will always be better because changes such as new features and improvements can be implemented with ease.
  • Unlike at Bitcoin or Ethereum where even minor adjustments are enough to cause serious disagreements and even forks, Viacoin is different. The technology lowers the need for dividing the network like it happened after the DAO attack in the Ethereum network.

What’s Viacoin’s vision on Security?

The security vision of Viacoin is to become the most secure network without compromising its ability to grow over time. When Viacoin was created in 2014, regular attacks had become a common thing in the young blockchain industry. In 2011, Mt. Gox was hacked and over 600,000 Bitcoins lost. Then, BitFloor was hacked in 2012 resulting to loss of 24,000 Bitcoins while Picostocks lost 6000BTC in the 2013 attack.  Viacoin founders had to craft a winning model that could keep the network secure and win the user’s trust. Here are some of the methods used to keep the network safer.

  • Dark Gravity Wave (DGW): This is an open source difficulty algorithm created by Evan Duffield (the creator of Dash/Darkcoin). The technology utilizes multiple exponential moving averages to smooth the mining difficulty readjustment to help address flaws such as time wrap attacks.
  • Regular updates to fix gaps: With attackers getting tech-savvier, the Viacoin development team adopted a system of regular updates to fix bugs noted in the network. To guarantee users of extra security, the development team has also lined up an array of development features to implement in 2018.
  • Use of smart contracts: The application of smart contracts in a network helps to make the operations of a system inviolable. Because users have to meet the pre-set conditions, many attackers are finding it very difficult to break into the system.
  • Viacoin uses Scrypt mining algorithm: This algorithm has been crucial in reducing the efficiency of ASIC mining to help decentralize mining and lower the danger of 51% attack. However, the efficiency of scrypt has increasingly come under question as more as ASIC miners targeting scrypt hit the market.

Examples of Viacoin’s use cases / applications.

The core goal of many cryptocurrencies is becoming major payment networks in the market. Even as the looming regulations remain unpredictable, the use cases of most cryptocurrencies continue increasing. Here are the main Viacoin use cases.

  • Paying transaction fees in the Viacoin network. When you decide to use the Viacoin network to send value, the transaction fee is paid using Viacoin. Note that this fee is mainly meant to motivate the miners who help to confirm the transactions running on the network as opposed to optimizing the network profitability.
  • Paying the trading fees in the cryptocurrency markets. If you want to trade Viacoin in the markets such as Binance and Bittrex, the transaction charges can be paid in Viacoin. Note that trading in such exchanges requires users to pair Viacoin with other coins such as Bitcoin. Therefore, even the other coin paired with Viacoin can also be used to clear the transaction fees.
  • Buying goods and services from e-commerce stores. Like Bitcoin, Ethereum and Ripple among other cryptocurrencies that have been wooing traders and buyers to their platforms, Viacoin is also in the race. Viacoin stability has made stores such as Lionfood to start accepting it for direct payment.
  • A reliable method of saving funds without worrying about third-party seizures. As a decentralized and highly encrypted network, Viacoin allows users to save and invest in the network without worrying about third-party seizures. Whether you want to buy and hold or simply hide your savings from third parties, there is a great opportunity to relax without worrying about third-party seizures.
  • Viacoin can be paired with other cryptocurrencies to trade in the exchanges.The cryptocurrency exchanges operate like the standard forex markets. To start trading in the exchanges such as UPbit, Coinroom, and Yobit among others, you need to identify the preferred trading pair and register for a trading account.

https://coincheckup.com/coins/Viacoin

https://viacoin.org/

https://medium.com/@viacoin

https://github.com/viacoin/documents/blob/master/whitepapers/Viacoin_fullcolor_whitepaper.pdf