What is Breakout Stake?
Breakout Stake is a digital token of the Breakout Coin Company, a global multi-currency payment firm that supports coins with varying properties. The other supported tokens include Breakout Coin, and the Sister Coin.
The coin was founded by James Stroud who was concerned that the coins in the market by 2016 were not addressing the issue of cross-chain interoperability. James and his development team wanted to create a platform that could be used to easily address emerging issues in the blockchain networks.
The total supply of Breakout Stake is 6.28 million coins. This is approximately 1/3 of the total number Bitcoins that will ever exist in the market. The founder argued that a limited supply will help to keep the coin’s value high and deliver returns on investment to users trading it the markets.
- The Breakout Stake price performance in the market
Breakout value, especially in 2018, took a bearish trend just like other coins in the market. Many digital coins have experienced dipping prices starting from early 2018 as the value corrects the sudden rise reported towards the close of 2017. The value of Breakout Stake also followed a similar trend.
After entering the market in mid-July 2016, the value of Breakout Stake was $0.44. However, it dropped sharply to $0.o9 by July 26th, 2016 before recovering to $0.2 by the close of August the same year.
Between September 2016 and March 2017, the value of Breakout Stake dropped steadily to hit a low of $0.07. However, the remaining half of 2017 was marked by the impressive performance that culminated to $2.80 on January 9th, 2018. This was the highest mark in the Breakout Stake coin’s history.
The good performance of the coin did not last long. Immediately after hitting the peak in January, it embarked on a decline that culminated to $0.09 by the close of November 2018.
What is the problem that Breakout Stake solves?
The Breakout Coin Company entry into the market was necessitated by the unending problems that threatened to halt blockchain technology from success. Here are some of the issues that Breakout Stake addresses.
- Poor cross-chain inter-operability
While it is true that significant strides have been made in the crypto niche, the problem of poor cross-chain capabilities is threatening the industry. Unlike banks that allow people to simply write cheques to recipients in other financial institutions, the cryptocurrencies have no method of directly relaying value between chains.
If you have some Bitcoins and want to send value to a recipient in the Ethereum platform, there is no direct method to achieve the goal. To make such transaction possible, you will need to start by changing the Bitcoins to Ethereum using a cryptocurrency exchange. The process is lengthy and complicated.
The Breakout Coin Company targeted to use its currencies to help address the issue. It seeks to make it easy for users to simply send value from one chain to another without joining the two networks.
- Complex decentralized apps development environment
Though a lot of people and businesses have developed an interest in the blockchain niche, the entry point can be tricky and complicated. For example, a lot of businesses would like to use initial coin offerings (ICO) to raise funds for development but the process of managing it is complex for them.
The thoughts of owning a native coin or running a decentralized system can also be possible with a simplified platform for all. This is what the Breakout State platform created to offer. The goal is to help users understand the blockchain technology and identify a specific niche they can fit to grow together with the industry.
- Centralization of financial services
If you use financial services through a bank or credit card companies, your resources and info are managed in a centralized manner. The conventional financial service providers are strictly governed by laws of the jurisdiction they are based in. This makes it easy to control inflation and enforce rules such as anti-money laundering (AML) strategies.
However, centralization comes with serious issues such as the high cost of sending funds and lack privacy. Besides, your funds are at a higher risk of getting lost through attacks by malware such as ransomware or mismanagement.
- Centralization of mining
The original design of decentralized networks introduced by Bitcoin involved using computing power to solve complex mathematical puzzles in order to confirm transactions. However, the mining difficulty keeps increasing requiring more computing power to be able to viably mine the networks. To address the problem, the tech companies started generating advanced Application specific integrated circuits (ASICs) that generate high hashing power for profitable mining.
The main issue with ASICs is that they are very expensive and only the wealthy can afford them. This means that the process of mining new coins and governance is left to the well-to-do in the community. The danger of this is that the respective networks are at greater risks of suffering from 51% attack while the idea of decentralization is also compromised.
How does Breakout Stake solve the problem?
The Breakout Stake team took time studying the issues that affected the blockchain niche and adopted the following strategies to counter them:
- Support for side chains
To address the problem of cross-chain operation, the Breakout Stake native platform is designed to use turing complete smart contracts that support side chains. This helps to simplify the process of creating blockchain for new users.
If you are a startup and has been targeting to create a blockchain, the Breakout chain has simplified the process so much that there is no need to start from scratch. Most of the work has been done for you so that you only need to follow their recommendations to create a side chain that will run attached to the main network.
When new users start and run side chains, they can easily communicate with each other so that sending value will not require using an exchange. This model mimics that used by the Ethereum and its support for ERC20 coins.
- Operates as a hybrid of proof of stake and proof or work protocols
The pioneer consensus protocol in the blockchain industry was proof of stake that was used in Bitcoin. Though it is the most used protocol in other coins such as Bitcoin Cash, Litecoin and Ethereum, it comes with major shortcomings such as the danger of 51% attack.
To retain the benefits such as top-notch security that come with proof of work, Breakout Stake team opted to blend it with another protocol referred to as proof of stake. Now, users do not have to generate a lot of computing power to get rewarded with native Breakout Stake coins. Rather, they only need to stake them to become part of its governance system.
- Breakout Stake is run together with other coins
To ensure that more people can join and use the Breakout Coin platform, the founder designed the platform to support multiple coins. This helps to provide users with more options so that they can choose the preferred coins. You can opt to use Breakout Stake, Breakout Coin, or the Sister Coin.
- Complete decentralization
The Breakout Stake platform operates as a completely decentralized network that relies on nodes in the system to run transactions. This implies that when a transaction is initiated, there is no centralized authority such as a bank that is involved.
The miners spread in the system pick transactions and follow the public addresses to check whether the person sending funds has ample coins to spend. Then, they add the transaction to the next block and include it in the ever–growing public ledger.
Running as a completely decentralized system implies that transactions are completed faster and at lower rates. Besides, they are encrypted so that there are no third parties that can easily know the details of users’ financial history.
What makes Breakout Stake better than it’s competitors?
Breakout Stake entered the market when the rate of new coins joining the market was approaching the peak. Note that it was not just competing against other crypto coins. As a payment system, it had to compete against conventional financial service providers such as banks and credit card companies. The following are the main things that make the coin better than competitors.
- The coin is led by a tech team that progressively works on impressive features for the network. For example, the team has developed and implemented ‘fee scavenging’ that allows users to pay transaction fee with a different coin.
- The Breakout Stake coin allows users to mine the network by simply getting a stake in the system. This implies that you can mine the coins using standard GPU by simply acquiring some stake.
- The network provides users with a reliable platform to easily create blockchains. This implies that a startup can complete creating a blockchain in record time because most of the work has already been done.
- The Breakout Stake provides users with a good opportunity to join and own the network. By operating as a completely decentralized model, users on the network also own it. You can even suggest areas that need improvement and have the community vote on the proposal.
- As a completely encrypted network, you are able to send value without worrying of getting discovered by third parties such as tax authorities.
How can Breakout Stake’s be categorized?
Breakout Stake is a creative coin introduced to demonstrate that the blockchain niche is vibrant and can evolve to deliver reliable solutions. The unique design of the Breakout Coin chain to support multiple coins and side chains using smart contracts demonstrated that with creativity, the blockchain niche can overcome all challenges on the way.
The idea of side chains has helped to redefine the niche especially by steering it away from centralized exchanges. As far as a side-chain is attached to the mother Breakout chain, it is possible to send value directly.
However, you need to appreciate that such cross-chain operations are only possible within the Breakout system. For example, you will still need to use an exchange to change Breakout Stake to another coin such as XRP if sending value to the Ripple network.
What is Breakout Stake’s vision on security?
The Breakout Stake vision on security is to provide users with a secure platform for sending value and running their decentralized applications. It is important to note that Breakout Stake was released at the point when the crypto niche was coming to terms with the infamous DAO Child attack that resulted to spit of the Ethereum platform.
To keep the Breakout Stake and its platform secure, the development team opted for the following features.
- The system operates as a hybrid model of proof of stake (PoS) and proof work (PoW) to facilitate even distribution of coins. This has been very helpful in preventing the danger of 51% attack.
- The development team progressively reviews the platform to identify gaps and closes them before attackers can take advantage to compromise the system.
- The platform uses smart contracts to define the rule of operations between the side chains and the main chains.
- It operates using advanced encryption that helps to keep the user info secure and free from third parties.
Examples of Breakout Stake’s use cases/ applications
To reach out to more people and encourage them to come and use the Breakout Stake, the development team wanted to ensure it has as many applications as possible. The focus is on helping users integrate it into their daily lifestyles. Here are the main use cases.
- Use the Breakout Stake to trade in the markets that list it.
- The Breakout Stake coin can be used to pay for goods and services in stores that accept it.
- Breakout Stake can be used to pay for taxes and government services in jurisdictions such as Arizona and Singapore.
- The Breakout Stake coin can be used to send value across the globe on a peer2peer basis.
- Instead of saving cash in a bank, you can buy Breakout Stake coins and hold them as a store of value.
- The Breakout Chain can be used for decentralized application development and running startup side chains.
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