What Is SpreadCoin
When Satoshi Nakamoto released Bitcoin, he demonstrated that it was possible to run completely decentralized transactions without relying on centralized organizations such as banks and credit card companies. Now, SpreadCoin has come to advance the same concept and take it to the next step.
- A brief history of SpreadCoin
SpreadCoin is a decentralized and open-source cryptocurrency designed to help prevent centralization of mining pools. The coin was developed in 2013 and released in July 2014 through an Initial Coin Offering (ICO).
Like Bitcoin Satoshi Nakamoto, SpreadCoin founder is only known by the name Mr. Spread. The anonymity of the founders is targeted to help shield them from possible legal suits associated with creating cryptocurrencies. At this point, it is important to appreciate that digital coins are not regulated.
In the United States, the federal administration appears unclear of the route to follow as the Securities Commission and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) appear to pull in different directions.
Though this anonymity has helped to advance the decentralization course at SpreadCoin, some people feel that it undermines openness. Some examples drawn in this case include other platforms such as Ethereum and EOS whose founders, Vitalik Buterin and Dan Lalima respectively, are well known.
- SpreadCoin Price performance in the market
The price of SpreadCoin between launch in 2014 and early October reflect a growth of about 4000%. But the growth has been characterized by high volatility especially in 2017 and 2018.
When SpreadCoin entered the market in November 2014, the price was $0.001 before growing significantly to $0.1 in January 2015. However, the price retracted to $0.01 in March the same year and remained around the same mark until February 2017.
Between April 2017 and August 2017, the price shot up to $3.14, the highest mark in the coin’s history. The value dropped to $0.2 before climbing to hit another peak of $3.08 on 9th January 2018.
Like other cryptocurrencies, SpreadCoin price took a bearish trend that culminated to $0.04 recorded in early October 2018. The downward trend is now slowing down and the community expects that the price will start rising again.
What is the problem that SpreadCoin Solves?
The primary goal of cryptocurrencies introduction into the market was to give people a new method of sending funds that is free from censorship and interference. However, the blockchain system has also faced serious challenges that are slowing down blockchain growth. Here are some of these problems that SpreadCoin addresses.
- Centralization of mining
Mining is the process of confirming transactions and adding new coins into respective networks. The process involves solving complex mathematical puzzles for a reward. To achieve this, many cryptocurrency networks require users to generate high computing power.
At Bitcoin, the mining difficulty has increased so much that individual users find it very hard to mine the coins with GPUs. To mine the system and earn BTC, people have resulted to using pools and expensive mining equipment. The implication of this is that pools have become a new method of centralization.
The centralized mining pools are serious threats to blockchain security by raising the danger of 51%. SpreadCoin targets to address the issue by limiting the ability of pools to mine the platform.
- Poor adoption and growth of blockchain technology
While the rising number of cryptocurrencies in the market today gives the impression that all is okay, a closer look demonstrates a different story. Many people feel that the process of joining cryptocurrencies is complex and unrealistic. But more people are hesitant to use cryptocurrencies for fear of reprisals by the government.
At Bitcoin, the transactions can no longer be considered anonymous. The platform only uses pseudonyms which can easily be unmasked by following different transactions with advanced technology. SpreadCoin wants to give users the assurance that their operations in the network will be free from third party seizures.
- Poor scalability
The design of many blockchain networks is to ensure that all or all nodes sign transactions before they can be completed. Unlike in the centralized organizations where only a few people are responsible for confirming transactions, the decentralized design tends to be very slow. At Bitcoin, the system can only support 7 transactions/ second while Ethereum can only do 20 transactions/ second.
Now, compare these rates with those of industry leaders such as Visa that can handle in excess of 20,000 transactions per second. SpredCoin sought to address the problem to make blockchain more competitive and attractive.
How Does SpreadCoin Solve The Problem
The SpreadCoin founder and his development team knew that they had to craft a reliable method that would help address the above problems while encouraging more users to join the network. Here are the methods that SpreadCoin uses:
- Use of SpreadX11 algorithm
The SpreadX11 algorithm is a proof of work hashing function created by Evan Duffield to help address the problem of centralized mining using ASICs. SpreadCoin took Duffied idea introduced a pool prevention mechanism to it.
The SpreadX11 operates by including additional info on the header (hashWholeBlock and MinerSignature). The additional info ensures that those who mine new blocks on the SpreadCoin will be the first to know the whole block content. This is different from the common pool mining where the pool operators are the first to get the details.
This implies that when a miner finds a new block, he signs a block and transmits it to the network the same way it happens with solo mining. The method makes pool mining rules non-enforceable because any member of the pool can opt to remain with the reward and not share it.
- Compact transactions
SpreadCoin utilizes a compact representation for signatures in all transactions. Unlike Bitcoin that keeps a copy of the public keys of the corresponding signature, the SpreadCoin omits this so that public keys can be recovered directly from the signature.
This implies that it is not necessary to maintain the public keys of all ECDSA signatures in a block. Therefore, users can keep smaller transactions that require smaller blockchains. This is the method used to increase the transactions that SpreadCoin can handle in the network while keeping the associated cost as low as possible. SpreadCoin transaction size is 67 bytes compared to 139 of Bitcoin.
- Smooth halving
When Bitcoin core code was released, one notable thing was that the mining reward would half every four years. However, the sharp drop when the halving happens is demotivating and could see miners opting out of the network for other networks.
SpreadCoin introduced a method of smooth halving so that miners do not experience the sharp drop every four years.
What makes SpreadCoin better than it’s competitors?
After Bitcoin launch in 2009, the blockchain space gate flung wide open opening the space to a wide range of coins and varying applications. The early coins such as SpreadCoin have, therefore, been facing serious competition from newer coins. Here are some of the things that make SpreadCoin better than its competitors.
- SpreadCoin has been in the market for longer and its system has been proven to work. Having been introduced into the market in 2014, SpreadCoin is considered more stable because most of its features have been tested and proven to work.
When new coins enter the market, they have to take a number of years before all the features are tested and proven to work. In many cases, this is about five years. However, SpreadCoin has been in the market for long and its core code is considered very strong. For example, its SpreadX11 feature has proven highly effective in preventing centralized pool mining.
- The price of SpreadCoin has been performing relatively well in the market. When people set out looking for cryptocurrencies to join, the first thing is following the price performance. Though its price has not been as explosive as that of Bitcoin or Bitcoin cash, the growth has been impressive.
Between launch and October 2018, the price had grown by about 4000%. Besides, its market capitalization that stood at $20,434 in mid-October 2018 is well ahead of others such as Webchain, Citadel, and Bitblocks.
- SpreadCoin targets a smaller niche of sending value on a peer2peer basis. One trick used by SpreadCoin to edge ahead of others is focusing on a small operational area. Unlike Ethereum and EOS that are focused on multiple activities such as running smart contracts and decentralized operations, SpreadCoin opted to focus on financial transactions only. This is pretty the same model like that of Bitcoin.
However, focusing on a small range of activities is also a disadvantage. For example, it limits the utility of the platform and risks losing users especially those targeting other services offered by other platforms. This is one of the reasons why SpreadCoin value has been sluggish in the market.
- The cost of sending value on the SpreadCoin is lower than other networks such as Bitcoin and centralized organizations. The low value of SpreadCoin compared to others such as Bitcoin Cash and Bitcoin implies that people can send value at a lower value. The cost is also lower than what banks are charging because the transactions are completed on a peer2peer basis.
- It allows users to join, use and own the platform. If you use a bank to send value or run a transaction, it feels passive. You are only required to follow the procedures installed in the system and walk away once the transactions are completed. However, SpreadCoin is different.
When a user joins the system, he/she becomes part of the governance system. This means that in the case of an issue that requires voting, you will be called upon to participate. You do not just use the network and go; you own it.
How can SpreadCoin be categorized?
SpreadCoin is a fully decentralized coin that targets to take cryptocurrencies to the point that Satoshi Nakamoto intended. By adopting the unique Spreadx11 algorithm and promoting the individual use of SPR, more people can now enjoy the benefits that come with blockchain services.
What’s SpreadCoin’s vision on Security?
When SpreadCoin entered the market in 2014, the problem of insecurity had become a major threat to many crypto establishments. For example, Mt. Gox was hacked in 2011 and over 600,000 BTC stolen. To make SpreadCoin more secure, the founders opted to use the following strategies:
- Advanced encryption.
- Strengthening decentralized operations through SpreadX11 algorithm.
- Regular network monitoring and updating the core code.
Examples of SpreadCoin’s use cases / applications
The introduction of cryptocurrencies was meant to provide users with an alternative method of sending value but on a peer2peer basis. The following are the main use cases associated with SpreadCoin.
- Use SpreadCoin to pay for transaction charges on its native network.
When making transactions such as sending value on the SpreadCoin system, you are charged a small fee for motivating miners or supporting the network development. This fee is paid using SpreadCoin.
- Paying charges when trading the coin in the exchanges.
Trading SpreadCoin in the markets such as Cryptopia requires users to pay operational charges. Because trading requires the user to pair the currency with a different coin, you have two options of paying the charges. For example, a person trading BTC/SPR has the option of paying the cost in either SpreadCoin or Bitcoins.
- Buying goods and services in conventional stores.
As more stores come out to support cryptocurrencies, people with SpreadCoins have the opportunity to make direct purchases. Note that even in the event that only a different coin is supported, you can still use SpreadCoin by converting it using the exchanges.
- Paying taxes in jurisdictions that support digital coins.
Though many countries were very negative about cryptocurrencies in the early years of cryptocurrencies, the perception is changing. Now, even some jurisdictions are allowing people to make official transactions in digital coins. One example is Singapore.
The Singapore administration indicated that there is no difference between using fiat currencies and cryptocurrencies. The primary goal is sending value. Therefore, you can pay for government services using SpreadCoin or other digital coins in the country.
http://spreadcoin.info/downloads/SpreadCoin-WhitePaper.pdf
https://coincheckup.com/coins/spreadcoin/
https://cryptomining-blog.com/tag/spreadx11/