As the name suggests, Litecoin was envisioned as a light version of Bitcoin. The latter was meant to become a digital replacement for cash but eventually was appropriated as a digital unit of value. Since then, Bitcoin has become known as “digital gold”, and Litecoin, designed for day-to-day transacting — “digital silver”. Litecoin creator is […]
As the name suggests, Litecoin was envisioned as a light version of Bitcoin. The latter was meant to become a digital replacement for cash but eventually was appropriated as a digital unit of value. Since then, Bitcoin has become known as “digital gold”, and Litecoin, designed for day-to-day transacting — “digital silver”. Litecoin creator is no enigma — his name is Charlie Lee. By 2011, when Litecoin was created, he had been working in Google for about a decade. He explicitly intended the coin to be modeled after Bitcoin but adapted for daily uses. Right now, he is working full-time at Litecoin Foundation and is active on social media.
Litecoin Network is sometimes called a fork of Bitcoin Core, though it actually is a so-called project fork. Litecoin never shared a record with the Bitcoin network but is built on the same code. It uses the same Proof-of-Work consensus mechanism and the same miner reward logic. On a basic level, Litecoin works almost identically as Bitcoin. One of the differences from its predecessor is that Litecoin features shorter block times, which means transactions are confirmed faster, and the network can handle more transactions at a time. The block size is capped at the same 1MB, though SegWit which was introduced in Litecoin first, lets blocks handle even more transactions. Here are a few stats to compare BTC and LTC networks (from bitinfocharts.com):
Litecoin’s 0.0001LTC fee barely comes up to $0.01USD. In comparison to BTC’s transfer fee, it is barely noticeable.
The block time is 4 times less that of Bitcoin’s. To compensate for faster propagation, the total amount of Litecoins to be ever mined and the halving countdown are also scaled to be 4 times more than Bitcoin’s.
Mining Digital Silver
Anyway, it wouldn’t be a coin of its own if there were no additional differences from the main client. For one, the hashing algorithm Litecoin uses is called Scrypt, and while Scrypt utilizes SHA-256 calculations, it also requires memory in addition to computing power, so parallelizing the calculations with it is barely possible. What it means in practice is that Scrypt is ASIC-resistant and therefore mitigates the problems that arise from the industrial-scale mining: extremely high energy consumption and centralization around miner pools. However, ASIC-resistant doesn’t mean ASIC-proof, and Scrypt ASICs have been developed for a while now. Litecoin mining is not hobbyist-friendly anymore, though anyone can still join either in a pool, out of curiosity or with a noble goal of decentralizing the network.
Faster block creation does not only mean faster confirmations, but also more distributed miner awards. The current reward for a block is 25 LTC or $1,048 USD at the time of writing. There have already been two reward halvings since the inception of Litecoin in 2011: first, in 2015 and then in 2019. On the other hand, faster network propagation rate can increase the chance of an orphaned block, a legitimate block that was not included on chain.
Value from Utility
Just like with other cryptocurrencies out there, the value of Litecoin lies in its utility. Blockchain guarantees that the transactions on chain are transparent, immutable and irreversible. The PoW consensus algorithm safeguards the network against hacker attacks, which happen to centralized entities all the time. In a hypothetical scenario of a 51% attack, the hackers would have to produce over 88 TH/s of computing power on their own, spending no less than $14 thousand USD an hour, so such an undertaking is barely economically feasible. The overall supply limit of LTC is 84 million, four times that of Bitcoin’s, but it still uses the same principle of reward halving to ensure the scarcity and deflation of the currency. Transactional capabilities of the network and imperceptible 0,0001 LTC transfer fee supposedly contribute to the utility of Litecoin as well. The fee, like in other transactionally active networks such as XRP and Dash, is in place to prevent flood attacks that spam the network, and further increase its security. At the time of writing, Litecoin ranks 7th by market capitalization, valued at $42,07 USD per 1 LTC. The total circulating supply is 64 553 218 LTC.
Litecoin & Smart Contracts
Litecoin has been ahead of its “big brother” not only with SegWit implementation but also with atomic swaps. The first atomic swap was conducted in September 2017 between Litecoin and Decred. It is a smart contract technology that allows users to make cross-chain currency exchanges without any intermediaries. This fact potentially adds to the utilitarian value of Litecoin as well. The Litecoin community, among other things, is also discussing the introduction of Mimblewimble smart protocol to the network, along with Extension Blocks. It lets users mask addresses and amounts sent, being basically an opt-in privacy feature. The conclusion is yet to be made because the suggestion has raised concerns about delisting from some exchanges. However, the optional nature of it gives reassurance that this is not too likely to happen.
Wallet for Your (Lite)coin
Which wallet should you choose for Litecoin? A few of the options available are: Hardware wallets that do not interact with the Internet and keep your private key unexposed: Trezor and CoolWallet interface software will let you swap any crypto with LTC, provided by ChangeHero. Litecoin Core client: while it will take a whopping 15 Gb of memory, since it includes the entire copy of the blockchain, it is also the best adapted for LTC specifically and allows you to participate in running the network without mining. Software desktop wallets: Exodus, Electrum-LTC, Atomic, Guarda Wallet. Mobile wallets: in addition to mobile versions of Atomic and Guarda, there are also Edge, Mobi and Ethos wallets.
Access and Use
You can buy and sell Litecoin on most major exchanges like Bitstamp, Gemini, Coinbase or Bitfinex. In addition to exchanges and OTC desks, you have an option to buy Litecoin in the ATMs all over the world — check the map to find a nearest one!
Finally, a list of vendors that accept Litecoin can be found here. It’s not a long list yet, but as the public awareness will grow, it surely will expand. If you’re ready to add some “digital silver” to your portfolio or to test LTC in practice, you can easily and quickly swap it with ChangeHero!
In the end, Litecoin is a bit more than Bitcoin Lite. The improvements made to the first cryptocurrency’s technology make Litecoin deliver on its use case. If alt season ever comes, it will definitely take its niche and probably stay at the top as one of the longest standing and efficient altcoins. Did you find the article interesting or informative? Please let us know with your feedback! To not miss a new piece of content, subscribe to ChangeHero Blog and follow us on Twitter, Facebook, Reddit, Telegram to be the first to get notified. Take care!
A Foreword To commemorate World Book Day, our team has decided to give some recommendations on what to read about cryptocurrencies and all things blockchain. Prepare to take notes and add to your backlog, since we tried to find books for every level of understanding and topic! On Basics One of the most popular kinds […]
To commemorate World Book Day, our team has decided to give some recommendations on what to read about cryptocurrencies and all things blockchain. Prepare to take notes and add to your backlog, since we tried to find books for every level of understanding and topic!
One of the most popular kinds of books about cryptocurrencies is guidebooks that aim to explain what it is in the first place. These books range from simply written to somewhat technical or focused, but are usually approachable by the general public nonetheless.
Mark Gates’ Blockchain: Ultimate guide to understanding blockchain, bitcoin, cryptocurrencies, smart contracts and the future of money is praised for its simplicity of language and approachability. Perfect for a brief overview of the technology without going in too deep. An alternative to that guide would be Blockchain Technology Explained: The Ultimate Beginner’s Guide About Blockchain Wallet, Mining, Bitcoin, Ethereum, Litecoin, Zcash, Monero, Ripple, Dash, IOTA and Smart Contracts by Alan T. Norman. It is self-published but faithful to its title and concise.
No list is complete without mentioning Andreas Antonopoulos and his books. His knowledge comes from his education (a degree in Computer Science and Data Communications and Distributed Systems from University College London) and passion for Bitcoin that stems back to 2012. Mastering Bitcoin: Unlocking Digital Cryptocurrencies is a deep-dive into Bitcoin’s technicalities, approachable by engineers and economists alike, though it was clearly meant for the former. The Internet of Money and the following two volumes are collections of essays that were reworked from Antonopoulos’ lectures and presentations. In this series, he explores the economic, historical and philosophical implications of Bitcoin.
These books were written in 2015, and many things have changed since then. Nevertheless, they give enough ground to move on to more advanced and recent information. Readers can look forward to his next work, Mastering the Lightning Network, which is actually going to be a collaborative open-source project.
To get an introduction to the second largest cryptocurrency and its network, you can read Ethereum: Blockchains, Digital Assets, Smart Contracts, Decentralized Autonomous Organizations by Henning Diedrich. It is not too layman-friendly, since it contains code and technical details, but not too detailed to be targeted at developers, either. The perfect place to start it would be after learning the basics of Bitcoin and blockchain.
Another entry by Andreas Antonopoulos, Mastering Ethereum: Building Smart Contracts and Dapps is written in collaboration with Gavin Wood in the same spirit as Mastering Bitcoin: with attention to technical details and competent technological overview. A must-read for developers interested in Ethereum blockchain and decentralized applications.
Introducing Ethereum and Solidity: Foundations of Cryptocurrency and Blockchain, written by Chris Dannen, came out slightly earlier than the previous entry and is one of the best pieces for non-advanced developers about programming in Solidity.
The technology of cryptocurrencies seems to be an equally popular topic with readers and writers alike. Many people have tried to give their explanation for such a complex but disruptive novelty, probably because the public is growing aware of its potential and shows the demand for such guides.
Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction by Arvind Narayanan: a tech manual for specialized courses that also does not overlook the bigger picture. Readers note that the Computer Science background certainly helps to understand the book, but is not required since it is concisely written and well-structured.
On the contrary, Blockchain Basics: A Non-Technical Introduction in 25 Steps by Daniel Drescher can be recommended to non-technical readers since it relies more on analogies and repetition, when necessary, and each chapter is provided with a concise summary. A good starting point for an introduction to such a complex idea. Another option beginners can pick up is Mastering Blockchain by Imran Bashir.
The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology, William Mougayar introduces the concept of blockchain to entrepreneurs and investigates contemporary and future applications of the technology. This book also has its fair share of futurism and can get too excited about the promises of blockchain, but Mougayar’s decades of experience in consulting and analytics give essential ground to his claims.
Blockchain Bubble or Revolution: The Present and Future of Blockchain and Cryptocurrencies is a great read that we couldn’t possibly skip mentioning. This could be described as a deep-dive into use cases which gives a balanced review from “the outside”. Its authors are product managers at Google (Neel Mehta), Microsoft (Aditya Agashe) and Facebook (Parth Detroja).
If you are an absolute beginner but feel confident enough to undertake trading as a source of income, you might find Bitcoin – Cryptocurrency Trading & Investing: Beginners Guide To Buying, Trading Bitcoin, Ethereum, Alt Coins & Investing In ICOs For Profit by Aimee Vo helpful. This book includes the most basic information on purchasing and trading Bitcoin, as well as some technical details in Plain English as an addendum.
Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske is targeted at investors. The main selling point of the book is cultivation of the means to assess an asset’s value that is a result of its utility. Sure, the market is not the same as in 2015, when it was published, but Burniske intended his book to be a tool for future investors and traders to help comprehend the contemporary crypto landscape.
For a more approachable introduction, you can refer to Cryptocurrency Beginners Bible: How You Can Make Money Trading and Investing in Cryptocurrency like Bitcoin, Ethereum and altcoins by Stephen Satoshi. It’s more grounded in concrete advice and guidance for the folks that know next to nothing about the crypto market (circa 2017, that is, so take the advice with a grain of salt).
Following the previous book, you can pass over to Cryptocurrency – A Trader’s Handbook: A Complete Guide On How To Trade Bitcoin And Altcoins by Marvin Neuefeind to learn more about cryptocurrencies themselves and become acquainted with the basics of fundamental and technical analysis.
Another well regarded book on the subject is Glenn Goodmann’s The Crypto Trader: How anyone can make money trading Bitcoin and other cryptocurrencies. Sure, it is personality-focused, but this approach also lets you gain insight on behavioural finance and psychological aspects of trading.
On History and Philosophy
Humanities were no stranger to the phenomenon of cryptocurrencies. There are books that investigate the place of it in economics and history, but there are also nonfiction pieces that definitely read like the wildest fiction.
The Age of Cryptocurrency: How Bitcoin and Digital Money are Challenging the Global Economic Order, by Paul Vigna and Michael J. Casey. Michael C. Munger (Professor of Political Science, Economics and Public Policy and Director of the Philosophy, Politics, and Economics Program) of Duke University says in his review that “if you’re going to read one book about Bitcoin, this is it”. He notes how the book delivers on telling the reader economic implications and technical details in a comprehensible form. This book can be recommended to those who are not looking for a deep dive into the technology but rather would like a comprehensive yet approachable introduction. Most importantly, it puts the recently emerged digital money into the global perspective and shows how it can influence it — as the title implies. A follow-up on blockchain in the same air is given in The Truth Machine: The Blockchain and the Future of Everything by the same duo.
If you are looking for something more exciting but still comprehensive, Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money by Nathaniel Popper can be classified as narrative nonfiction and in addition to covering Bitcoin basics it introduces lots of stories of people involved in the Bitcoin’s short but bright history. Popper is a technology and business reporter in the New York Times, so as expected, “Digital Gold…” is well-researched and solidified by numerous interviews and sources.
In Bitcoin: the Future of Money?, Dominic Frisby gives a general reader an overview of early history of Bitcoin. The technology, admittedly, is glanced over, while more focus is given to anarchist implications of cryptocurrency or a separate chapter in which Frisby is speculating about Satoshi Nakamoto’s identity. The word is, this one “reads like a thriller”, so if you don’t mind or even share the ideological charge this book carries, you might want to check it out.
Another approach is taken by Phil Champagne in The Book of Satoshi: The Collected Writings of Bitcoin Creator Satoshi Nakamoto. Without focusing on who the Bitcoin creator actually is, Champagne instead presents the thought process that went into making the first cryptocurrency. Admittedly insightful read for people already well-versed in the subject.
Of course, there are many more guides, biographies, investigations, manuals and other pieces of nonfiction about blockchain and cryptocurrencies, since even after more than a decade of existence it still remains a mystery to the general public and a quagmire of secrets and curiosities even for seasoned traders, developers and journalists. If anything, as time goes by, even more subject matter emerges, so more and more exciting books will surely be written and published.
ChangeHero team will also keep writing more informative and interesting articles for our readers.
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It is approximated that about one-third of the world’s population is on lockdown these days. Technically, “lockdown” can mean anything from state-imposed isolation to recommendations to stay at home and closure of some non-essential businesses. Regardless, it’s almost universally advised that it is safer for everyone to stay at home these days. Self-isolation for a […]
It is approximated that about one-third of the world’s population is on lockdown these days. Technically, “lockdown” can mean anything from state-imposed isolation to recommendations to stay at home and closure of some non-essential businesses. Regardless, it’s almost universally advised that it is safer for everyone to stay at home these days. Self-isolation for a lot of people means changing the way they live. In such circumstances, they can often find themselves unaccustomed to the lack of means they are used to. Luckily, there are already lots of guides and advice on what to do, how to spend time productively and just stay sane in these times of fear, uncertainty and doubt. Today, ChangeHero would like to present a guide to all crypto holders about the things you can still do with your funds.
First things first
We’re sure you’ve taken care of stocking up on essentials. However, we all want some nice food once in a while. These days you don’t have to go to Bitcointalk forum and ask some kind stranger to deliver two large Papa John’s pizzas for you for mere 10,000 BTC. If you live in Europe or South Korea, you’re in luck. Takeaway.com works across continental Europe and accepts Bitcoin via Bitpay. There is also a Seoul-based delivery service Shuttle that has a wide range of partner restaurants, so you will definitely find cuisine to your liking. Let’s imagine you are stuck at home with supplies running out and only Bitcoin on balance. Worry not, because of course there are merchants that ship goods and accept crypto! BitPlaza is one of the online marketplaces where one can make purchases with BTC and have the products shipped by mail anywhere in the world. Bitcoinpike.com is their old website since they moved to mobile apps. Note that for obvious reasons they only offer non-perishable foods.
With the non-essential businesses closed, offline shoppers might have to get used to all the conveniences of online shopping. Surprisingly, crypto has more to bring to the table than simply being a replacement for cash. Here are a few of such cases: While not all major retailers accept cryptocurrencies yet, there are a few platforms that serve as a workaround around that. For example, you can purchase gift cards on Bitrefill and spend them on Amazon, App Store & iTunes, Netflix, Best Buy, Walmart etc. Check the regional restrictions! If you live in the US, you can not only spend but also earn cashback in BTC with Lolli. Here’s a shortlist of activities that you can do at home while stacking sats with them:
shop in Microsoft Store or GameStop for games and software;
If you didn’t have any luck with the shops and services mentioned above, we can recommend checking out Accepted Here and Spendabit, which collect info about shops that accept cryptocurrency on one site. Note that the majority of retailers that go an extra mile to accept cryptocurrencies, for now, have only embraced BTC. However, this is not a problem when you can quickly and easily swap your assets with ChangeHero.
Investing Time in Self
You’ve probably already heard by now that with all the time we have on our hands now, it’s high time to read all the books or watch all the movies or start these hobbies you’ve been putting off. Maybe the energy you used to waste on commuting needs a new outlet? We have a couple of suggestions that, obviously, involve crypto. If you have a creative scratch that needs itching, you can write texts and creative posts for monetizable social networks like Yalls.org, Yours, Steemit, Hive BLOG. Alternatively, if you are more of an artist type, check out Pixeos Gallery. It is basically an art gallery on blockchain where everyone can collect and contribute. If you’d rather spend the time gaining knowledge, you can have a look at what HundredFoot has to offer. It is an online bookstore that is aimed at individuals seeking wealth growth. Their website says anyone who would like to make a purchase with cryptocurrency should contact them first, though. Don’t forget that you can tip the largest knowledge bases of the world, Wikipedia or the Internet Archive, with your cryptocurrencies. Expressing gratitude gets really easy with crypto donations.
If there is a silver lining to the global outbreak and lockdowns, the #PlayApartTogether initiative has to be one. The idea of relieving anxiety by gaming, while maintaining physical distance but without subtracting the social interaction, has even been supported by the World Health Organization. Crypto also has a couple of uses for this case. It’s no news that Bill Gates is very supportive of cryptocurrencies. As a result, BTC is an accepted option for Xbox and Windows Store credits that can be spent on games and apps. If you yourself don’t have the time or means to play some games, you can subscribe to your favourite streamers on Twitch and donate BTC to them. If you would like to not only spend cryptocurrencies but also trade and earn them, blockchain gaming is your go-to pastime. The games you can already play include:
Mobile games like EOS Knights (on EOS blockchain), Spells of Genesis (Ethereum);
Action-adventure RPG Forgotten Artifacts on Ethereum blockchain, note that it requires an Enjin wallet;
City builder/manager: MegaCryptoPolis 3D;
TCGs: Gods Unchained or Splinterlands (on Steem blockchain). Instead of a pack system, these games let players trade and purchase cards directly;
Sports management: ZED — horse racing simulator, or MLB Champions for mobile;
War simulator CryptoAssault, playable in browser;
Collectable (think CryptoKitties!) game Blockchain Cuties with an adventure twist on top.
Or visit recently launched Verasity GameStore, where you can find an assortment of blockchain games of different genres.
Lightning Round of Honorable Mentions
A service being on the blockchain does not necessarily mean it is going to be something that is hard to get into — most of these platforms learn from the existing popular projects to create something familiar that also offers the upsides of blockchain technology like resistance to censorship and fair monetization. One of the most popular platforms for video hosting at the moment is DTube, built on Steem blockchain. You can listen to music on Audius, BitSong, Musicoin Project and Resonate. Live-streaming is most prominent on DLive, though there are other platforms like theta.tv and VIMM.
Helping the Cause
If you have covered all the needs of you and your loved ones and are thinking of helping others, there are dedicated fundraisers and charities that accept donations in a variety of cryptocurrencies. Namely, Binance’s Crypto Against COVID comes to mind.
If you are somehow not convinced in this cause, you can have a look at the report about Helperbit’s fundraiser — From 0to 20 thousand in two weeks: how the Bitcoin community has helped Italy to face Coronavirus emergency. The money collected through the campaign was put to real use to help facilitate on-site blood donations that are needed for COVID-19 treatment. That is about it for this topic. If you have suggestions of your own, feel free to share them in the replies or comments!
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Bitcoin Halving is about to take place in less than a month, and the unceasing buzz is raising the expectations of the crypto enthusiasts. The past two halvings resulted in a price surge in the long-term, and the tertiary is also expected to follow the same. Here’s everything you need to know about this major […]
Bitcoin Halving is about to take place in less than a month, and the unceasing buzz is raising the expectations of the crypto enthusiasts. The past two halvings resulted in a price surge in the long-term, and the tertiary is also expected to follow the same. Here’s everything you need to know about this major event in crypto.
Before we dive into the halving, it’s worth mentioning the core idea behind Bitcoin. Soon after the 2008 global economic crisis, Satoshi Nakamoto published the Bitcoin whitepaper on 31st October. But the reason behind this path-breaking invention came into the limelight when the genesis block of Bitcoin was mined on 3rd January 2009 with the message, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. This well indicates Satoshi’s dismay towards the traditional financial institutions. Bitcoin was created to avoid such crisis and provide financial freedom to the people.
What is Bitcoin Halving?
Unlike the dollar bills, new Bitcoins are created through mining. Mining is a computerized process for verifying the transactions on the blockchain. It is an energy-intensive and expensive process in which huge amounts of computing power is a key factor. These machines run algorithms to solve complicated math problems. A new block is added to the blockchain once the solution is found. For their efforts to keep the chain running, miners are rewarded with fresh Bitcoins.
Bitcoin is a deflationary asset as its supply is limited to a total of 21 Million. One might think that why don’t miners mine all the cryptocurrencies at once. This may take a toll on the price of the Bitcoin and result in a crash. To avoid this and ensure a uniform distribution of new Bitcoins and to maintain the value, Satoshi proposed Halving.
To be more precise, Bitcoin Halving is the process of reducing the block rewards in half. The block reward is halved for every 210,000 blocks for the Bitcoin protocol.
The Aftermath Of The First Bitcoin Halving
A year before the first halving, BTC was traded at $3. It continued to rise to reach $12 till the having premiere in November 2012. The initial block reward of 50 BTC per block was reduced by 50% to 25 BTC per block.
Interestingly, there were no immediate effects on the coin after the BTC halving event, BTC continued growing in the subsequent year. Apart from the short bear market in June, there were not many setbacks for Bitcoin. The priced picked up quickly in August and crossed the thousand dollar mark for the first time in November 2013 and was traded at over $1100 before bears hit the market again.
Scenario After The Second Bitcoin Halving
In July 2016, BTC’s block reward was halved for the second time in which the reward was reduced to 12.5 BTC per block. Prior to the second BTC halving, in 2015, Bitcoin was crushed by the bears and fell to the lows of $250. The digital currency grew considerably to reach $600 by the time of the second BTC halving in July 2016.
As many have already witnessed the first halving event starting a bull run, the expectations around the second Bitcoin halving event rose, hoping that it would trigger another bull run. Akin to the previous halving event, there were no immediate price corrections or volatility. The digital currency continued to grow in the following year at a steady pace. Bitcoin embarked on a massive bull run in the second half of 2017 and hit the all-time high of $20,089 on 17th of December.
What Will Happen After The Bitcoin Halving 2020?
The third Bitcoin Halving is about to take place at Block #630,000 and is expected to happen on the 12th of May according to CoinGecko. The current block reward of 12.5 BTC will be reduced to 6.25 post the halving.
As the miner reward will be halved it will have an impact on the miners who contribute to the network. Miners will witness a significant drop in their revenues. There are only two ways in which a miner can be compensated post the BTC halving. The first would be through the transaction fees per block. But the Bitcoin’s block size limit of 1MB doesn’t appear to please the miners with transaction fees enough to cover the expenses. The other possible incentive to stay on the chain is the value of the Bitcoin itself. Though the block reward will be reduced by 50%, a proportionate increase in the value of the Bitcoin would encourage miners to stay in the business.
Researchers in Xangle found that the Bitcoin Hashrate has gone up exponentially after the first two halvings. The hashrate increased by 19.766% a year after the first BTC halving and the same rose by a whopping 248% post the second halving event.
This also falls in line with the price increase of Bitcoin which we have explained in the earlier sections. Bitcoin price crossed the thousand dollar mark in 2013 which is almost after a year of the first halving. The second halving event also had similar traits in which Bitcoin’s value peaked after a year. This very well indicates that the increase in the value of Bitcoin is the major motive behind the miners.
In March of 2020, Bitcoin’s price plummeted which resulted in a significant drop in mining. Currently, Bitcoin is recovering and there is a considerate increase in the hashrate. This can be connected to the Bitcoin Cash and Bitcoin SV halvings in which the block rewards were already reduced, recently. Miners from both the BCH and BSV would supposedly be migrating to Bitcoin blockchain and also those who are already on Bitcoin chain might be pumping the older mining rigs to reap the profits before the reward gets slashed. It is evident that economic incentives drive the mining and miners would be solving the riddles to confirm transactions only till the Bitcoin’s value goes up. In short, Hash will follow the Price.
Community pulse on the Bitcoin Halving
Bitcoin Halving is a hot topic in the crypto community. The internet folks are excited about this event and searching for info. The search term “Bitcoin Halving”, showed a peak in the interest of the audience according to the Google Trends.
We have been hearing many influencers and Executives of crypto firms voicing their opinion about this major event.
Kraken COO, Dave Ripley expressed his optimistic views on the BTC halving in an interview to The Block. He stated, “Historically, we saw a price surge in the 1.5 years after the halving, so it’s highly possible we’ll see new entrants in the market.”
The American Entrepreneur, Tim Draper took a stance on his previous statements on Bitcoin’s price on a fireside chat with Block TV and predicted that Bitcoin would be reaching $250,000 in about six months to a year after the third Bitcoin Halving.
On the other hand, a famous trader Peter Brandt thinks that the Bitcoin Halving is overrated and explained that he considers the daily trading volume to be the real supply of Bitcoin and the daily reduction of mined Bitcoins will not be a big change.
A famous Bitcoin Trader and analyst that goes with the nickname Crypto Michael suggested that the current global economy would have a greater impact on the Bitcoin price than the halving and hinted that it’s hard to expect how things unfold amid the crisis.
History Tends To Repeat
On a closer look, the two halving events have a few things in common. Firstly, there is no immediate effect on the price right after the Bitcoin Halving. Secondly, in both the halvings, Bitcoin’s price hit new highs after a year. But, the current economic situation and the COVID-19 pandemic may also have some influence on this. With Bitcoin recovering and the buzz around it growing day by day we believe that the halving will impact the network as a whole. Though we cannot affirm that the previous events will be repeated, but history has the tendency to do. All we have to do is trust Bitcoin and watch things unfold.
This is the time to invest in Bitcoin! On ChangeHero you can simply buy Bitcoin with credit or debit card, also, you can exchange popular cryptocurrencies to Bitcoin without any registrations.
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Following BCH earlier the same week, BSV has halved the miner rewards on Friday, April 10th. For Bitcoin SV, this was the first halving as well. Halving in this network works exactly the same as in Bitcoin and Bitcoin Cash: it occurs every 210,000 blocks and the block mined immediately after will yield half the […]
Following BCH earlier the same week, BSV has halved the miner rewards on Friday, April 10th. For Bitcoin SV, this was the first halving as well. Halving in this network works exactly the same as in Bitcoin and Bitcoin Cash: it occurs every 210,000 blocks and the block mined immediately after will yield half the reward. In Bitcoin SV’s case, the rewards were cut down from 12.5BSV to 6.25BSV. To deal with potential miner escape, BSV directs transaction fees to the miners that solve the blocks, and with the unlimited block size that was introduced with Genesis update, the busier the network, the more transaction fees miners get. This way they’re incentivized to contribute to the network. The pre-halving situation is described in detail in an earlier article by our team, so let’s have a look now at how the network is doing after the event.
Short-term price response
The movement is not looking great on the first glance, but it’s still too early to say this trend will continue. The Bitcoin halving is coming in approximately a month and the most noticeable change caused by the coin’s halving historically has shown itself in the long term, three to six months after the reward slashing. At the time of writing the article, Bitcoin SV ranks sixth with $3,487,919,898 USD market capitalization, evaluated at $189.78 USD (0,02766810 BTC) (according to CoinMarketCap).
How did network respond to Halving
According to the information on bitinfocharts, on the day of halving three important metrics have tanked: hashrate, block propagation times and mining profitability. Right now, however, these numbers seem to be returning to the previous average rates.
The hash rate did drop, but according to coin.dance at the moment of writing, it is more profitable by 3.1% to mine BSV rather than BTC. The mining profitability metric accounts for not only the price but also the block difficulty (which is lower than BTC’s) and subsidies for block creation (i.e. miner fees).
The drop in profitability is most likely an immediate response of the metric to reward slashing.
The network was moving almost two and a half times slower than it is supposed to (26 minutes for a block on average as opposed to the standard rate of 10 minutes). The median time to find a block right after the halving and until the end of the day was about 15 minutes. Not a serious slowdown, but a difference between the average and the median is explained by a few extremely slow blocks (for instance, block #630,016 took 116 minutes to be mined, #630,026 — 82 minutes, #630,051 — 79 minutes (all data taken from blockchair.com)). The graph shows that it is back to its usual propagation tempo, though.
Most discussion has been happening within the BSV community on Twitter. People noted how the network didn’t come to a halt like BCH and how the profitability of mining has recovered, despite the hash rate drop. Outside of it, BSV halving mostly got lumped together with last week’s BCH halving and hardly discussed.
Takeaway from the BSV Halving
All in all, the events of BSV halving mirror that of the BCH, which happened a few days earlier. Proponents of both chains agree that the full picture will become apparent after the BTC halving, for now almost all hash power is concentrated in that network (97.6%), which was expected. After that, not only the major Bitcoin forks but the market as a whole will probably see a long-lasting change, so it is almost impossible to say for sure how the events will unfold even in the following months. In any case, you can get Bitcoin SV with ChangeHero extra fast thanks to zero confirmations. Check it out while it is still calm before the storm! ChangeHero will keep you posted on other major events in crypto, the only thing you need to do is subscribe to ChangeHero Blog and follow us on Twitter, Facebook, Reddit, Telegram. Feel free to give us any feedback in any of these channels!
What happened to Bitcoin Cash? On 8th of April, the event known as halving occurred in the Bitcoin Cash network. In essence, starting from the block #630,000 the miner’s rewards were cut down in half, from 12.5 BCH to 6.25 BCH. It is an anti-inflation mechanism native to the Bitcoin network, from which the Bitcoin […]
What happened to Bitcoin Cash?
On 8th of April, the event known as halving occurred in the Bitcoin Cash network. In essence, starting from the block #630,000 the miner’s rewards were cut down in half, from 12.5 BCH to 6.25 BCH. It is an anti-inflation mechanism native to the Bitcoin network, from which the Bitcoin Cash diverged, or forked, in 2017.
Why is Bitcoin Cash Halving a big deal?
Many people treat BCH and upcoming BSV halvings as a rehearsal of the similar event that is projected to happen in the BTC network in late May of 2020. Historically, BTC halvings have been connected with a long-term rise in the value of the currency. In addition, lowered miner rewards shake up the mining industry by letting the opportunists take the place of those miners who chose to retire, thus creating healthy competition (in theory, at least).
What is happening with BCH now?
On the market
In terms of price, Roger Ver himself pointed out that it was like any other average day. While the first halving in the network, this has happened with BTC before, and long-timers insist that these events should not be hyped up too much and the most fun things are yet to happen within the next six months. Regardless, there was some hype, as the price has jumped from $250.19 to $277.65 within 8 hours on the day of halving (according to the data on CoinMarketCap). On the following days, though, there were no such sudden changes and the price continues to see a very slow but steady downward trend. It has to be said that these short-term changes are in no way indicative of what is to come next.
In the network
In the short-term, there were some difficulties in the network, as the first post-630,000 block took almost two hours to mine. This might have happened because of some miners shutting mining down as soon as the rewards were cut down. For such cases, the network has a difficulty-adjusting algorithm (sometimes abbreviated as DAA) in place, to make sure the blocks are more or less always mined every 10 minutes. Although it is much more probable that it was a temporary hiccup and the process has been picked up by the miners in a couple of hours, because just one block is not enough to give all the credit to the DAA.
With the miners
The miners are obviously the ones experiencing the immediate impact of this event. In one moment, their revenue was reduced in half, while the expenses didn’t. The hashrate was dropping while miners reduced their operations or switched to the more profitable at the moment BTC mining. However, the hashrate may have dropped but the blocks are still propagated and in the long run, theoretically, an increase in value of BCH might serve as an incentive for the miners to stay. The block times, as a result, have been varying within an even wider range. While the network has not ground to a halt because of adjusting difficulty, the decrease in mining power could not leave the network unaffected. In the following summary, you can see that at the time of writing the BCH network got slower, but in general is propagating normally at about the same speed as BTC:
How did people react to Bitcoin Cash Halving?
This shouldn’t come as a surprise that the posts on social media that people were discussing the most were also the most expressive. There are generally two moods about it on Twitter and Reddit: either people spell doom to Bitcoin Cash or are stocking up on popcorn to see how everything is going to unfold.
Will the same thing happen to Bitcoin?
Not necessarily. If anything, Bitcoin Cash is likely to be more influenced by the Bitcoin halving rather than its own, experts say. After all, BCH is following BTC price trends quite consistently, and from the previous experience, the whole market, following the first cryptocurrency, is expected to experience a long-term bull-run. That is, on the premise that history repeats itself. We shouldn’t forget that the world in 2016 was much different from what we have now. That is it for this topic for now! Continue following this story with us by following ChangeHero on our blog, Twitter, Facebook page, Medium, join our Telegramchannel and the ChangeHero Subreddit. Until the next one!
It often seems like for newbies and experts alike the world of crypto is full of wonders… and wondering. What cryptocurrencies people around the world want to buy, sell and exchange? What other cryptocurrencies other than Bitcoin are worthy of attention these days? What popular cryptocurrencies should I be watching closely? Which wallet is the […]
It often seems like for newbies and experts alike the world of crypto is full of wonders… and wondering. What cryptocurrencies people around the world want to buy, sell and exchange? What other cryptocurrencies other than Bitcoin are worthy of attention these days? What popular cryptocurrencies should I be watching closely? Which wallet is the best to store cryptocurrency? How can I join the discussion about crypto on social networks? ChangeHero compiled everything you wanted to know about cryptocurrencies in the world in one long read.
Popular cryptocurrency in different countries of the world
Despite the fact that most cryptocurrencies are designed to be global and accessible to everyone, once they start being used by actual human beings, there is no way digital money would ignore everyday realities. Therefore, in different countries of the world popular cryptocurrencies can be wildly different, depending on the reasons people use them. For example, the USA and Europe prefer Bitcoin as a means of investment because of its established position and trading opportunities, while some experts believe that devaluing national currency is the reason Indonesia and Venezuela are seeing very high cryptocurrency adoption rates. In Philippines, the country that in some reports ranks as number one in adoption, major reasons for owning cryptocurrencies included curiosity, usage as a means of payment and trading for profit.
Popular cryptocurrency in china
China is also a known adopter of cryptocurrencies, mainly because of the large concentration of industrial-scale mining businesses, all in spite of the official position of the government. If you would like to know more about this long and complicated story, ChangeHero has an article about it specifically. Bitcoin is undoubtedly the most popular cryptocurrency in China, and originally Chinese-based exchanges Bitfinex, OkCoin and BTCC still make up a huge part of the currency’s total market. Given the last year’s developments, the world is watching closely for the emergence of digital yuan sometime later in 2020. China is very likely to be the first major political power to introduce digital currency on a national scale and put it into practice, and this might change even how people everywhere in the world buy and sell cryptocurrencies.
Popular cryptocurrency in the USA
As it has been said before, Americans prefer to use their crypto funds as a means of investing and trading at exchanges. For that reason, Bitcoin remains the most popular cryptocurrency in the USA, because the whole market is more or less indexed to it: should it rise or fall, it is very likely (though not certain) the others will follow. However, in the same source, you can learn that more than half of the Americans who own Bitcoin also make use of altcoins. Maintaining a profitable portfolio means that they probably know how and when to swap their crypto assets. Besides, this is the current status, and like with China, the year 2020 might bring drastic changes to the industry. Libra is making its way out of the regulatory purgatory it has been stuck in for a while, and with the influence Facebook has on the daily lives of Americans, this project has all the chances to take the nation — and the whole world, probably — by storm.
Popular cryptocurrency in India
Back in March, Supreme Court of India lifted the RBI-authorized ban on cryptocurrency service provision, which has made a lot of traction in the enthusiast circles. The major India-based exchanges, like WazirX, Bitbns and Unocoin, became able to finally operate there again without any prospect of being closed or banned at any minute. While the international services where the users can buy, sell and exchange cryptocurrencies even without logins and verification were still available to them, it’s always nice to have something close and familiar. It’s no surprise that Indians also prefer trading and earning on exchanges with Bitcoin. However, while it is the most popular cryptocurrency in India, it is not the only popular option. Other coins with a high demand include Ethereum, USDT, XRP, Bitcoin Cash and Tron — all available on ChangeHero.
Popular cryptocurrency in Japan
Japan is known for both pioneering the regulation in the crypto sphere and being extremely stringent about it. In spite of the seemingly harsher conditions, the industry is doing rather well there. Major Japan-based exchanges include Zaif, Bitbank, BitFlyer and Coincheck. One should not also forget that the first cryptocurrency exchange, Mt. Gox was founded in Japan. Since that time, a few instant non-custodial exchange platforms, including ChangeHero, have been established, which would not fail to hackers. As is the case everywhere else, Bitcoin is massively more ahead of other coins in terms of being widespread. Other reportedly popular cryptocurrencies in Japan include XRP, Ethereum and XEM. Another curious example of a coin popular in Japan, albeit more in the sense “well-known”, is MonaCoin, modeled after Litecoin but by design and spirit thoroughly Japanese.
Popular cryptocurrency in Africa
African countries can serve as a good example to show how cryptocurrencies are not only the privilege of the more fortunate with an expendable income which can be put into investments, but also a probable solution to economic crises involving centralized finances. Zimbabwe, known for its hyperinflation rate, is reported to see unprecedented Bitcoin adoption rates. In South Africa, one of the world’s “leaders” for inequality, the most popular cryptocurrencies are Bitcoin, Ethereum, Litecoin and EOS, used both as an investment and a means of payment. Despite the negative reputation which was a result of emergence of various fraudulent schemes at the peak of the nation’s interest in cryptocurrencies, Nigeria still has the most numerous and one of the most engaged crypto communities in the world. In its capital, Lagos, people recently became able to buy Bitcoin at newly installed ATMs. Many experts, like Jack Dorsey and Nicolo Stoehr, claim that all the regions of Africa have enormous potential for the blockchain enterprises. Some Africa-based projects include Golix Coin (GLX) and Ubuntu coin (ucoin).
Popular cryptocurrency in South-East Asia
Nevertheless, Asia is more likely to take the lead in cryptocurrency adoption than Africa, for now. As it was already mentioned, South-East Asian countries like Indonesia and the Philippines have a much higher awareness and ownership of cryptocurrencies rates that average worldwide. Singapore is a country with a very advanced economy and very progressive policies in the financial sector. The cryptocurrency regulation framework there is said to be one of the most comprehensive and modern in the world. The Litecoin Foundation is headquartered in Singapore. In addition, this city hosts a lot of exchanges like Liquid, CoinTiger and DigiFinex. The most popular cryptocurrencies in Singapore are Bitcoin, Ethereum, Binance coin (BNB), XRP, Stellar Lumens (XLM), Litecoin and Komodo (KMD). In the recent news, Malaysian businesses Tokenize Malaysia, Sinegy Technologies and Luno Malaysia are finishing the probationary period and launching crypto providing services that are fully regulated. Comprehensive regulation means a safer environment for the people to buy, sell and exchange their hard-earned Bitcoins and other currencies.
The other stuff in crypto
Most popular cryptocurrency wallets
It’s fair to suppose that if the use cases and preferred currencies vary so much in different parts of the world, then the wallets people use can be different, too. Though the software for cryptocurrencies is as global and borderless as the digital money, localization and country of origin can play into the choice of one wallet over another. Finally, the legislation can serve as a limiting factor, so wallets can or cannot let you buy or sell cryptocurrencies in the app depending on where they’re based.
There are a few kinds of wallets popular with different kinds of crypto adopters:
Custodial wallets and exchange accounts. While one of the least safe options, because your private key (and therefore, funds) is stored at the custodian’s server, it is also one of the most popular. Perhaps because it is more convenient to buy or sell your crypto without withdrawing. Wallets like Coinbase wallet are popular in the US and India; Coincheck and bitFlyer are popular in Japan;
Mobile wallets. These are usually hot storage, meaning that the access to your funds is granted to you through accessing the blockchain with an Internet connection. They are also generally safer than custodial wallets, because while your private key is still exposed to the network, albeit encrypted, it is also stored in your device. Most popular hot wallets include Exodus, Blockchain wallet, Atomic wallet. Besides, mobile wallets are convenient, and that is why they’re more popular than their desktop counterparts in China;
Cold storage. Regarding the security of your assets, it is as safe as it gets, because it is entirely up to you. Cold storage wallets are popular with people seriously investing in cryptocurrencies and holding large amounts of money. They seem to be in demand with Americans and Europeans. They can come in forms of sophisticated hardware devices like the ones Ledger, Trezor or CoolWallet offer, that securely store your private keys offline or be as simple as a piece of paper with a QR-code on it.
ChangeHero is integrated in some of those wallets, so if you own a Trezor or use Exodus, Magnum or Coinify, you can use our services to swap currencies in these wallets!
Most popular cryptocurrency apps
What about the apps that are not necessarily wallets but make use (or help you to do so) of cryptocurrencies?
In the US, the most popular app in the Finance section of App Store is Cash App, which supports Bitcoin! Other popular crypto-related apps are Robinhood and SoFi Invest, which are finance tools but also have support of cryptocurrencies, and exchanges like Crypto.com and Mobile HitBTC;
In Asian countries like China, Japan and Singapore, the most popular crypto-related apps are in general mobile versions of exchanges: OKEx in China, Crypto.com, Binance, eToro and Huobi in Singapore, GMOClickFXneo in Japan.
Crypto portfolio trackers are immensely popular in Japan and India: those apps include Coinview, Bitcoin Ticker and Bitcoin Crypto Portfolio.
In case you didn’t know, there are whole networks built on popular blockchains like Ethereum, Bitcoin SV and Tron, which include a vast network of decentralized applications, or DApps for short, that can come in the forms of games, social networks and decentralized exchanges.
Popular cryptocurrency hashtags
Cryptocurrencies revolve around the communities, so it is only natural that there is always some buzz making rounds about crypto in the social networks. Here is a few popular cryptocurrency hashtags you can keep your eye on to stay tuned about everything (or to reach out to other interested folks if you are an influencer):
Twitter: #bitcoin #crypto #blockchain #trading #btc #cryptocurrency #ethereum #xrp #ripple #market #mining #cryptotrading #cryptonews #cryptomining #cryptolife. Tip: don’t be too shy to use more conventional hashtags like #business and #news with those to reach out to even more people!
Have a look at how the most popular hashtag, #bitcoin, is performing according to Ritetag:
This might have to do with the fact that it has its own emoji that accompanies this hashtag!
Popular cryptocurrency to mine
Let’s suppose you’re more interested in earning your cryptocurrencies slowly and steadily, rather than playing a game of risks on the exchange. In other words, you’re looking into mining rather than trading. Don’t be discouraged by the fact that this is considered a professional industry: there are plenty of coins that can be mined by hobbyists profitably even in 2020! Ethereum Classic supports ETHASH, which has a considerable degree of ASIC resistance to keep GPU mining valid. Other altcoins that potentially can bring you profit and are more or less established are Zcash and Verge. And by the way, you can exchange them at our website! Coins that use Cryptonight — Monero, Haven or TUBE — work better for mining with an NVidia GPU. Always remember about DYOR, though!
Everything about Crypto Communities
New popular cryptocurrency
While we are all waiting for the advent of game-changers like Libra, TON or national digital currencies (or lack of it, for all we know), there are already a few new coins and currencies which, while lacking in hard-earned reputation, are performing well and can already change the landscape of the market and adoption.
PAX Gold — fiat-pegged stablecoins have already found their niche on the market, and Paxos, after launching PAX stablecoin, decided to create another asset pegged against another valuable — gold. This way, this token can be an even more sound source of value and enjoy all the convenience of digital assets.
Basic Attention Token — a token native to the revolutionary Brave browser, which allows for advertising monetization model that is profitable for both the target and the advertiser. How cool is that? If you’re too impatient to earn it the intended way, you can buy and sell it on our website.
Synthetic Network Token was launched less than a year ago and is already in top 50 by market cap according to Coinmarketcap. It is an ERC-20 token, used as a collateral for Synths — assets used for trading on the decentralized Synthetix.Exchange that have the same value that the originals but do not require you to actually own the original. By staking SNX, owners get exchange and staking rewards.
Popular tweets about cryptocurrency
Crypto Twitter is a great place to get new information and know the people in the industry, as long as you know who to follow. Take a look at the most popular tweets from the most well-known Crypto Twitter personalities:
Vitalik Buterin, Ethereum co-founder:
Andreas M. Antonopulous, early Bitcoin investor and expert:
Fred Ehrsam, co-founder of Coinbase and Paradigm:
Meltem Demirors, CSO of Coinshares:
Brian Armstrong, co-founder and CEO of Coinbase:
Nathaniel Whittemore, Long Reads Sunday and Breakdown author:
As you can see, Crypto Twitter is an interesting bunch. Whether you want to listen to a serious, technical approach or a down-to-earth light-hearted fellow enthusiast, you will surely find a voice to follow. For one, we’re suggesting you to follow our account as well to stay tuned about new content and collaborations!
Popular cryptocurrency communities on Reddit
That’s about it for Twitter but what about other online communities? Reddit is extremely popular with cryptocurrency enthusiasts as a platform for communication and discussion. A lot of cryptocurrency companies and communities run their own subreddits. Here are the most popular ones:
r/cryptocurrency — one of the most populous and active crypto subreddit of them all.
Various content: news, discussion topics, memes;
r/bitcoin — the most populous subreddit dedicated to the first cryptocurrency.
ChangeHero has also launched a subreddit of our own, so feel free to join our community!
ChangeHero is striving to become a larger part in this global community of crypto enthusiasts. We welcome everyone to use our services, no matter where they come from or what altcoin they may shill. Exchange fast, with no logins or verification, or buy and sell cryptocurrencies with a debit or credit card at our website.
BSV sent shock-waves across the crypto sphere with a striking price spike in the early January and recovered considerably well after the recent crypto catastrophe. With an unceasing buzz in the community, the team is gearing up for the halving this week. It is going to be a crucial upgrade as it is going to […]
BSV sent shock-waves across the crypto sphere with a striking price spike in the early January and recovered considerably well after the recent crypto catastrophe. With an unceasing buzz in the community, the team is gearing up for the halving this week. It is going to be a crucial upgrade as it is going to be the first for BSV and may have an impact on the whole network.
In this short post, ChangeHero will give you a brief outlook of everything you need to know about BSV Halving.
A quick background story on Halving for the starters — In return for confirming the transactions miners were given a block reward, freshly mined cryptocurrency in this case. This ensures that miners are incentivized for contributing to the network. Unlike the dollar bills, cryptocurrencies are deflationary and the supply is limited, talking only the decentralized ones.😉 To avoid the improper distribution of the coins, Satoshi Nakamoto has introduced a unique phenomenon called Halving. It reduces the block reward for every 210,000 blocks and ensures an even distribution of the coins to maintain the value of the cryptocurrency. Looking for more info on Halving? Quickly go through this article.
Back to the topic, BSV is about to undergo it’s first halving event this week and the news flew under the radar due to the current market scenario. BSV halving will take place at the block #630,000 and is expected to happen on the 10th of April. The current block reward of 12.5 BSV will be reduced to 6.25 BSV after the maiden halving event.
Everything Around The Miners
2020 will get into the history books of the crypto as three Bitcoin-based chains will be going through halving within three months. Though the dates may vary a bit, it is expected that BSV and BCH halving will take place before BTC. On a different note, miners invest a lot to gain access to computing power and to find the block. With the block reward decreasing, miners would initially look for alternatives to be profitable. As all the three chains run on the SHA-256 hashing algorithm, there is a considerable chance that miners could shift to the BTC chain right after the BSV halving to cash-in the extra rewards for a short period. Either way, it is hard to predict and it would be good to wait for the things to unfold.
Additionally, there is some criticism about miners contributing to BSV mining and not being able to make ends meet. Adding fuel to this, the initial impression of halving does look unfavourable to the miners as the reward will be slashed in half. There are only two ways that one might find mining to be profitable — one being an increase in the value of the crypto and the other is the transaction fees from the block. Betting on the future price of the coin might not be the optimal choice as there will be a plethora of factors affecting the price of BSV. BSV team aims to counter this by compensating the miners with transaction fees to transform mining into a profitable activity. This was already made possible by increasing the block size and lifting off the limits completely as a part of the Genesis Hard Fork in early February.
Quick reminder: Go through this article quickly to learn more about the BSV Genesis Hard Fork.
The team is playing around with this feature on the STN and reported some impressive figures recently. On January 25, Block #14893 was mined at over 1GB and consisted of a whopping 5,449,866 transactions. As a cherry on the top, the block has generated 10.73654716 in BSV as fees accounting to around $3000. This would draw the attention of the miners and make them stay on board.
As of writing, BSV is being traded at $189.13 and a circulating supply of 18,370,477 BSV with block count #629,633. As it is the first-ever halving event for the chain and there is no historical data to draw patterns from, it is near to impossible to forecast the price of BSV after the halving premier.
Flying under the radar
Though there isn’t much of chatter on BSV halving, the event does appear to instigate major changes in the network. In the short-run, we could witness miners who look for profits migrating to other chains. Conversely, in the long-run, approaching the halving by compensating with more transactions in a block has all the possibilities of turning out to be a success.
In a nutshell, outcomes of the halving are very much interconnected with the bigger block sizes which allow more transactions per block. This would, in turn, result in more fees to the miners despite the low network fee per transaction, ultimately a win for both the users and miners. BSV team has chosen a sensible way to combat the rewards reduction with the vision of a scalable chain to build a better world for both people and businesses.
By the way, did you know that on ChangeHero you can get BSV with zero confirmations? Give it a shot.
Early P2P payment systems powered by blockchain, like Bitcoin, have all the potential to be the revolutionary invention of this century. In spite of that, when confronted with reality, crypto payments are still struggling to see adoption in daily life, albeit it’s probably much better now than it was a few years ago. Countless proposals […]
Early P2P payment systems powered by blockchain, like Bitcoin, have all the potential to be the revolutionary invention of this century. In spite of that, when confronted with reality, crypto payments are still struggling to see adoption in daily life, albeit it’s probably much better now than it was a few years ago. Countless proposals and projects emerge to help overcome the hurdles that hinder the adoption, and Dash is one of them that has garnered the most attention thanks to its unique qualities. This time we at ChangeHero are going to investigate what makesa Dash unique and does it deliver on the bold claims behind the project.
What is Dash?
Dash was launched in 2014 under the name “X-coin”. Its founder, Evan Duffield, has been a Bitcoin enthusiast since 2011, but after a few years he finally came up with a project of his own cryptocurrency that would improve on the Bitcoin model. Dash has also been known as “Darkcoin” until early 2015.
Evan Duffield was behind most of the original signature features of Dash and served as the project’s CEO from the launch until in 2017. For the time as CEO, and still, he is the Dash’s spokesperson, often going public with educational insights about the coin he developed.
Dash, like the original, uses the consensus algorithm of the same principle, Proof-of-Work, and is mineable. Its value is attributed to it by the market and users, just like with other cryptocurrencies that are not pegged to anything. And finally, like Bitcoin, its ultimate goal is to become a digital replacement of fiat money for peer-to-peer instant payments.
However, this is pretty much where the similarities end, and unique features of Dash come into play. Most of the original features were developed to circumvent Bitcoin’s shortcomings: the speed of transactions, privacy, governance, miner rewards to name a few. Let’s have a look how it is achieved:
A technology unique to the Dash network and one of its most defining features is the masternodes. They serve as a second layer of the network, making some advanced features possible. The masternodes are elected based on their contribution to the network, since they store an entire copy of the blockchain and provide advanced services. Therefore, significant computing power is required to run a masternode. In addition to that, it also has to be backed by a collateral of 1000 DASH (or $69,230 at the time of writing). In return, the masternode owner gets voting rights and rewards for running it.
Dash’s blockchain consists of two layers, the second being masternodes that enable a feature called InstantSend. When a transaction is performed, a masternode can check and confirm it prior to the inclusion of it in a new block. On the Bitcoin blockchain, a transaction can be deemed soundly confirmed only after six blocks, mined once every 10 minutes.
PrivateSend is a feature that can break down a transferred sum into decimal amounts and mix it with other inputs with the help of a masternode, making a transfer essentially untraceable.
To prevent inflation due to excessive mining, the incentives for miners have to reduce over time. Despite the fact that Dash blockchain is based largely on Bitcoin, instead of halving the miner reward every few thousand blocks, they use a different model, the reward is cut by 7% every year. This is supposed to help with transition to a fee-based economy, as well as incentivize hobbyist mining by making it difficult to invent industrial-level equipment as soon as it happened with Bitcoin and ASICs.
The mining reward for discovering a new block in the Dash blockchain is distributed between the masternode, the miner and a decentralized governance budget in a 45%/45%/10% ratio. The 10 percent that goes into budget is not stored anywhere, but rather held back on the blockchain. When there are proposals to improve the Dash network that are approved by the masternode owners, a superblock is created that releases up to 10% of the value accumulated in the budget to fund this proposal.
The Bitcoin blockchain is vulnerable to potential consensus, or 51% attack, and hashing algorithm hacks. To prevent this in their own chain, Dash developers use a unique hashing algorithm X11, called like this because it combines multiple rounds of 11 hashes, so if one is compromised, there won’t be a need for an urgent network upgrade. ChainLock is a feature that is supposed to safeguard the network against the 51% attacks. A randomly selected and constantly changing quorum of masternodes votes on the block inclusion first, then verifies it to the rest of the masternodes, which in turn notify the rest of the network. This makes the network instantly immutable. Finally, forking in the Dash blockchain is impossible because the updates do not take place until a consensus is reached.
The Dash community definitely has a say in the development of the currency, with the masternode owners even getting to play a major part in network governance. There is also the core team of developers, who are on equal terms with the rest of the ecosystem participants: they claim to only support the network, and the funding of their work is subject to the community vote.
Dash’s current CEO, Ryan Taylor, comes from a financial background, in contrast to Duffield’s developer beginnings. He has worked for more than 15 years in financial services and technology, and prior to his appointment as CEO, he used to be Director of Finance at Dash.
Uses and prospects
Dash’s core use case is to provide an accessible and reliable digital alternative to cash. For that purpose, they are constantly working on payment processing technologies for Point-of-Sale and eCommerce by integrating partner providers into their ecosystem.
Discoverdash.com is a service that aggregates businesses that accept Dash, so if you live in a large city, give it a try — there’s a good chance there are a few of them where you live!
Dash can serve as a fast and reliable intermediary for international remittances as well. Another selling point for Dash is the low network fees — at the time of writing a median transaction fee was only 0.0000037 DASH ($0.00025 USD).
Another quite unexpected real-life use case of Dash is an alternative to hyperinflated currencies.
Even though there are so many features in the network already, the Core team is not going to stop. Right now, DashPay is in development, which will make Dash network even more accessible by introducing usernames, contact lists and human-readable addresses. In the meantime, the team will continue to work on the network support and QoL improvement.
At the moment of writing the article, Dash ranks 20th by market capitalization of $652,116,649, traded at $69.23 in the volume of $643,325,085 and 9,419,690 DASH in circulation. You can exchange to and from DASH at ChangeHero at competitive rates and as fast as it would take you to make a purchase with it!
As we can see, Dash is another solid contender to seize the crown of digital cash replacement. It is already seeing use as a means of payment and remittance and not showing any signs of stopping its development and expansion. Sure, it has seen better days on the market, but as far as its intended uses go, Dash delivers on its promise just fine.
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