What is VeriumReserve?
VeriumReserve is a decentralized cryptocurrency that targets helping pull the cost of financial transactions down and optimizing blockchain scalability. The Cryptocurrency was created by Douglas Pike and Nosker Patrick. The two founders are also the creators of Verium coin and hold PhDs from Rutgers University.
VeriumReserve is a combination of Vericoin and VeriumReserve to create an intertwined network referred to as dual-blockchain. In the dual-blockchain, Vericoin serves as a currency because of its unique properties such a low transaction fee while Verium serves as a store of value because of its high fee.
Therefore, consider VeriumReserve as a system that brings together a very cheap and very expensive blockchain system together. The Binary-Chain is a unique design, a pioneer in the niche that targets to solve most of the issues that have refused to go away from the blockchain niche.
- The performance of VeriumReserve in the market
When VeriumReserve hit the market in September 2016, the value was $0.32. Then, it rose by 350% to $1.44 in 22nd September 2016 before taking a steady decline that culminated to $0.08 in November 2016.
On 4th January 2017, the value had grown steadily to hit another high of $3.31 before dropping slightly in July and then growing to $17.07 on January 6th, 2018. This was the highest mark in its history. But the good show did not last long.
Between January and close of October 2018, the value had dropped to $0.55. Despite this negative drop, the community is optimistic that the value will take a positive trend and deliver high returns on investment.
What is the problem that VeriumReserve solves?
As the world accelerates towards the cryptocurrencies, every niche is gearing for some changes. However, the crypto networks shave been experiencing serious challenges that have threatened to slow down success in the niche. Here are some of the problems that VeriumReserve solves to help advance the niche to more sectors in the society.
- Scalability
The idea of using blockchain technology made Satoshi Nakamoto an instant hero after proving that it was possible to run transactions in a completely decentralized way without requiring a centralized organization such as a bank. However, the decentralized system’s requirement that many nodes must come to an agreement before transactions are completed has resulted in poor scalability.
When you look at the top cryptocurrencies in the market today, it is clear that they are chocking from own designs. Bitcoin, the largest network, can only handle seven transactions every second. Even Ethereum and Bitcoin Cash that are ranked at the top can only manage 20 and 60 transactions/ second respectively.
Now, compare the scalability of most cryptos with industry leaders such as VISA that can handle in excess of 20,000 transactions per second. The comparison demonstrates that the crypto niche requires rethinking key strategies to help drive higher scalability. This is one of the problems that VeriumReserve addresses.
- The high cost of sending value
If you send value through conventional banking services or other centralized methods such as credit cards, the cost of transactions is very high. These companies and institutions charge high transaction fees because they are profit based. Therefore, they want to optimize the returns to ensure that shareholders get good returns on their investment.
Another factor that makes centralized financial services charge high transaction fee is the need to cater for the long list of expenses. For example, a conventional bank located downtown has to pay for rent, wages, power, and compliance related expenditure. All of these operational costs are passed down to customers in the form of elevated transactional costs.
- Centralization of financial services
If you send money through banking institutions or use credit cards, it implies that both personal info and funds are at risk. As centralized organizations, the operations are largely based on trust. For example, people who put their deposits in a bank trust the management to handle it professionally. However, there are instances when poor management has resulted in banks running bankrupt. In such cases, you are likely to lose your funds or take very long before recovering it.
Because the financial institutions handle important customer data, they are good targets for hackers and malware. Malware such a wannacry ransomware targets such high-value content. When the attacks are perpetrated, it becomes very difficult to prove you had funds in a saving account. At times it might require expensive legal battles.
- Cross-chain interoperability
One of the most stressful issues today in the world of cryptos is lack of cross-chain interoperability. If you have some Bitcoins and want to send funds to a person in Ethereum network, the process is lengthy and expensive. First, you will need to join the two networks and acquire appropriate wallets that support them.
The second step requires that you use a cryptocurrency exchange to change one coin to another. In this case, you will change Bitcoin to Ethereum and store in your wallet. Note that depositing the coin in an exchange, changing it to the preferred coin, and withdrawing to an appropriate wallet will cost multiple fees. Finally, you have the opportunity to send Ethereum to the recipient address.
VeriumReserve targets to address this issue by ensuring that people can have a one-stop point for sending coins from one chain to another.
How does VeriumReserve solve the problem?
To address the above issues, VeriumReserve development team sought comprehensive answers that would not just help the network only, but act as a guide to the entire niche. Here are some of the adopted strategies:
- Binary chain
This is a new protocol model being applied by VeriumReserve that could eventually become the new trend if it proves successful in their blockchain. The protocol involves combining several altcoins such as Verium and Vericoin for storage purposes. This means that it acts as a bridge between a cryptocurrency and a digital reserve.
The protocol helps to improve the immutability of the blockchain beyond anything that people have seen today. As the protocol advances the idea of decentralization, the miners are motivated because they can earn Verium and benefit from the high fee system to store their value.
- Hybrid of Proof of Work Time (PoWT) and Proof of Stake Time (PoST)
To address scalability, the high cost of sending value, and centralization of financial services, the VeriumReserve development team extended the application of proof of stake and proof of stake protocols to include Time derivative. By introducing time variable, proof of work-time helps to increase the speed of transaction and enhance the mining power. The overall impact is higher network security and mining throughput.
Proof of work-time has also been credited for helping to decentralize mining in the VeriumReserve platform. Unlike the standard proof of work (PoW) protocol, the new consensus protocol makes it possible to mine the network with GPUs and CPUs.
The proof of stake-time, on the other hand, is targeted at helping to advance the concept of decentralization. The target is ensuring that those with stakes remain active so that transactions are completed in record time. It also helps to facilitate even distribution of coins to protect the network from attacks.
- Support for atomic swaps
To address the serious concerns for poor cross-chain interoperability, the VeriumReserve is designed to support atomic swaps. This is a form of cross-chain trading that involves the direct exchange of coins in one platform for others in a different chain without going through third parties such as exchanges.
The process involves the use of hash time-locked contracts that make the process completely trustless between the two networks. The contract sets the condition that the sender and receiver networks must adhere to. The only issue with atomic swaps is that it is not open to use for all networks. It can only take place between two cooperating networks. Therefore, the application could still be limited to only a few blockchains.
What makes VeriumReserve better than it’s competitors?
The VeriumReserve network is perhaps one of the most progressive platforms in the industry today. Its design and applications have set it apart as others are left to review and probably copy the new technology. Here are some of the things that make VeriumReserve better than its competitors.
- The VeriumReserve platform is led by an aggressive tech team
As other networks and conventional banking systems continue wondering how to address financial inefficiencies, VeriumReserve development team has trained its system to craft winning solutions. The development team comprises some of the top brains that the industry will count on to move to the next level.
- VeriumReserve has addressed the issues of scalability and cost in blockchains
The enhanced proof of stake-time and proof of work-time in the VeriumReserve have reintroduced the vigor that the blockchain had when Satoshi Nakamoto launched the first blockchain in 2009. The most notable thing about the protocols is that they have helped to improve scalability and pulled the cost of transactions.
- Provides a reliable way to send value across the blockchains
Instead of joining two networks when sending value to a different blockchain, the VeriumReserve system has created structures for atomic swaps. This system makes it easy to send a coin and the recipient to receive it in a different format without using the centralized exchanges. Think of it this way. You send Bitcoin but the recipient receives Ethereum.
- The VeriumReserve is a completely anonymous platform
Whether you are sending value or running other transactions, the system guarantees total privacy. This means that you do not have to worry about third-party seizures or unauthorized access to your personal details. Even miners who follow transactions to confirm whether you have ample funds can only check the public address.
How can VeriumReserve’s be categorized?
VeriumReserve is a highly ambitious crypto platform that is based on new technology that targets to address issues affecting the industry. It is a next-generation crypto and platform that has helped to define the direction that crypto networks are likely to take in order to improve efficiency, remain relevant, and deliver value to clients.
What is VeriumReserve’s vision on security?
The VeriumReserve’s vision on security is to become the most secure network that every user can join to enjoy decentralized services without worrying of attacks. The platform was created at a time when attacks in crypto networks such as the DAO Child attack and hacking of exchanges such as Mt. Gox has become very common. To achieve its mission, here are the main strategies that the VeriumReserve development team employed:
- Advanced encryption that helps to keep user info away from third parties
- The VeriumReserve development team progressively reviews the system to identify gaps and seal them with regular updates
- The advanced proof of stake-time helps to promote even coin distribution to prevent the danger of 51% attack.
- Implementation of proof of work-time helped to prevent Application specific integrated circuits (ASIC) mining and improve the security of users in the system.
Examples of VeriumReserve use cases/ applications
A cryptocurrency platform can only be effective if it has followers applying it in various situations. Like other coins such as Ethereum, VeriumReserve development team has been working hard to ensure that the coin is accepted in many areas. Here are the main use cases:
- You can use the VeriumReserve native coin to pay for transactions in different stores that accept it.
- VeriumReserve coin is a reliable way of sending value across the globe instantly and at a lower transaction fee.
- For investors, the unique design of VeriumReserve makes it a high potential coin. The community is optimistic that VeriumReserve coin could become the next Bitcoin.
- Like other coins such as Bitcoin, VeriumReserve can also be traded in the markets. Note that you are required to identify the supported exchanges, open a trading account, and create appropriate pairs before trading can commence.
- The VeriumReserve coins can be used to pay for taxes in countries that support it. Good examples include Arizona. The state allowed the tax department through bill HB 1091 to accept payment of taxes by residents using cryptocurrencies.
- VeriumReserve platform is a reliable mining platform. By applying proof of stake-time and proof of work-time, users can mine the platform with both GPU and CPUs.
https://vericonomy.ams3.cdn.digitaloceanspaces.com/documents/VeriCoinPoSTWhitePaper10May2015.pdf
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