What is Zennies?
Zennies is a cryptocurrency and a decentralized platform created to help facilitate secure transfer of value across the globe. The coin name, Zennies, takes from a Japanese term ‘Zeni’ that means small change. It is one of the new coins in the niche having entered into the market in March 2017.
By the close of November 2018, the coin was valued at $247,583 well ahead of other more popular coins such as FORCE and Dinastycoin with market capitalization of $231,741 and $219,991 respectively. Here is a closer look at the coin’s price performance in the market.
- The price movement of Zennies since its establishment
While the operational model of Zennies is impressive, its value between the time of entry into the market on April 18th, 2017 and close of November paints a concerning decline of about 900%. When Zennies entered the market in April, its value was $0.002 before falling to $0.001 in early May and then climbing back to $0.002 on May 6th, 2017.
In the subsequent one month, the value of Zennies rose steadily to hit the first peak of $0.004 before falling to $0.002 in early May and rising again to hit another peak of $0.003 in August. Again, the price declined to $0.002 in September before rising to $0.004 in January 13th, 2018.
In 2018, the value of Zennies has been on a bearish trend culminating to the lowest mark of $0.0002 by the close of November 2018. Though the price started showing signs of recovery by the close of November 2018, it will be interesting to see how it will perform in the highly competitive market in the coming years.
What is the problem that Zennies solves?
When Zennies entered the market, it sought to address the financial sector’s issues that had dogged the niche for years. Here are some of the problems that Zennies solves.
- Centralization of financial services
When Zennies was launched, most financial transactions in conventional institutions were run in a centralized manner. If you are sending value using the conventional banking system, it is processed by the staff in the respective institution. The bank pools the user data and deposits in centralized vaults that are run by the organization’s management.
The main issue with centralized financial models is that the risk of failure is very high. For example, the data is an easy target for hackers because it is centralized. The funds can also be mismanaged by the banking leadership resulting in bankruptcy. In such a situation, there is a danger of losing your funds or getting it locked over a long time.
The centralized model of operation also implies that the banks and credit card companies have to follow all the procedures described by their licensing authorities. These include anti-money laundering (AML) and know your customer (KYC) rules. These procedures make processing transactions lengthy and can at times last up to 4 days.
- Lack of privacy when saving or sending funds through conventional services
When a bank runs transactions, all the users’ details get exposed. Your info is easily accessible to the cashiers, bank management and financial planners of your jurisdiction. But this is not all. A court of law can also order for the transactions in case a lawsuit hauls its way to your doorsteps. The effort to use blockchain networks to guarantee users privacy has also not been very successful.
If you take the case of Litecoin and Bitcoin, the advancing technology is making it easy to know the details of individual nodes. For example, IP address analysis allows investigators to follow the specific computers that initiated or processed transactions. It is also possible to analyze individual transactions to narrow down to the individual user. Zennies targets to enhance the privacy of users when they invest and run transactions.
- The high cost of sending value at the international level
When banks and credit companies are designed, the primary goal is optimizing returns on investment. For the management, the higher the returns they make, the better. They keep adjusting the cost of transactions upwards to ensure that shareholders can get ample return on investment. But this is not the only reason for the high cost of sending transactions.
Most banks have to be positioned strategically to make it easy for clients to access services. This means running multiple branches downtown. The bank managements have to charge high interest rates to meet the high cost of rent, pay wages, and run multiple marketing campaigns. Zennies target to eliminate all these costs and make the transactions as cheap as possible.
- Poor adoption of cryptocurrency at the lower level
If you take a closer look at the crypto market, it is easy to conclude that everything is going on well. But that is incorrect.
If you draw closer, you will realize that most of the coins are in the hands of a few people. When new coins are released into the market through initial coin offerings (ICOs), those who are fast and buy them are investors with a lot of money.
The initial buyers hold the coins for sometime and only release them when the price moves up. This is the reason why you can walk downtown and lack a store that accepts payment in digital coins. Zennies targets to ensure that more people can join and start using the cryptos in their daily lives.
How does Zennies solve the problem?
To address the above issues, Zennies took a multi-dimensional approach to reach more, demonstrate value, and encourage users to continue using digital coins in their lifestyles. Here are some of the strategies adopted by the platform.
- Complete decentralization
Zennies operates as a completely decentralized network. Unlike the centralized banking systems that rely on centralized data centers and staff, Zennies uses a network of nodes spread in its system. When a user initiates transactions, they are picked by the nodes that follow back to confirm they have ample funds to use and prevent double spending.
Use of centralized nodes further means that there is no single point of failure. Unlike banks that can easily be compromised if one staff decides to damage documents, such an attack is impossible on the Zennies system. Because the blocks are stored by different nodes in their computers, clients’ info will always be available no matter the time of the day or night.
Even if one node falls off or is offline, the details will easily be accessible from other nodes. This model gives users the peace of mind that they will never lose their financial transactions. The decentralized approach has made the blockchain to become attractive even to companies that fear losing user data.
- Proof of Stake (PoS) consensus model
After Bitcoin launched its operations, most of the subsequent crypto networks followed its consensus model of proof of work (PoW) model. However, proof of work protocol has become a major cause of inefficiency because a lot of nodes are required to come to a consensus before new blocks can be added to public ledgers. PoW has also resulted in high power demand and centralization of mining.
To address the issue, Zennies went for a different consensus model referred to as proof of stake (PoS). Unlike the PoW model that requires users to generate a lot of computing power to confirm transactions, proof of stake requires one to only own some coins. You simply need to own some stake in the Zennies network to be able to mine the native coins.
By employing proof of stake protocol, Zennies has made it easy for more people to join and mine the network. For example, you only need a standard CPU or GPU to be able to mine the Zennies platform. Proof of stake protocol also helps to make the network more secure because those who have some stake cannot conspire to damage the platform.
- Targets multiple niches of application
To attract more people to use the cryptocurrency networks, the Zennies development team opted to diversify the native coin’s application. Unlike Bitcoin or Litecoin that only targeted helping users to send value, Zennies has an extended application. Though it is also a money transfer platform, it is projected at the gaming community.
What makes Zennies better than it’s competitors?
By the close of the third quarter of 2018, there were more than 1600 crypto coins in the market. This means that all coins especially the new ones have to craft winning ways to beat the current competition. Here are the main things that make Zennies better than competitors.
- The Zennies system allows users to send value on a peer2peer basis. Because they bypass the centralized banking and credit card systems, transactions are faster and cheaper.
- The Zennies coins make it easy to send value anonymously across the globe. The network use advanced encryption that ensures you can save funds and send value without worrying about third parties knowing about it.
- The platform is led by a very dedicated team that progressively improves the network to keep user info safe and secure. The community is relying on the strong core code and development team of Zennies to help restore the native coin to a positive growth trend.
- The Zennies system uses proof of stake protocol that makes it easy for more users to participate without requiring advanced mining equipment. This implies that more people can join and use the network even with standard computers
- As a truly decentralized network, it implies that users also own the network. This means that you do not simply send value or use the network and walk away. Rather, the stake you have in Zennies system means that you can be called upon to vote when a governance issue comes up.
How can Zennies’ be categorized?
Zennies is a completely decentralized platform created with the primary goal of helping users to see the value of going crypto. Whether it is buying merchandise from the local stores or online, the Zennies creates a new way of running transactions in a private, secure, and reliable way.
The community is especially enthralled by Zennies use of proof of stake protocol because more people can associate to it. The protocol has also helped the coin to enter the market and start competing with others in the market. For example, it was position 457 with a market capitalization of $247,728 by the close of November 2018.
What is Zennies’ vision on security?
Zennies’ vision for security is providing people with a secure and reliable platform for transferring value on a peer2peer basis. Though it is relatively young compared to others such as Litecoin and Bitcoin, the development team’s focus on security has made it very secure. Here are the main methods used to keep the network secure:
- The network uses advanced encryption to keep users’ info private and secure
- The Zennies’ development team regularly reviews the platform to identify and close vulnerabilities
- The platform uses proof of stake protocol that helps to evenly distribute the native coins and keep the system free from 51% attack
Examples of Zennies use cases/ applications
- Use Zennies coin to pay for goods and services in stores that support it.
- If you are a resident in jurisdictions that support cryptocurrencies such as Singapore and Arizona, it might be possible to pay for government services with Zennies coins.
- People who want to trade in the crypto markets can trade Zennies coins by pairing it with other tokens such as XRP and Loopring.
- Zennies can be used as a coin for storing value on the blockchain network. Simply buy the coins and hold until such a time when the price will move up.
- The Zennies coin can be used to send value on a peer2peer basis across the globe. Note that both the sender and receiver must be in the Zennies network or have supported coins for the transfer to be complete.
NOTE: If you target to invest in Zennies, it is important to carefully compare with others because the price has been on a negative trend in 2018. The price tag by the close of November was lower than the starting price in 2017. Therefore, it is advisable to exercise caution or spread investment in different assets.
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