The Cryptographic Coin Specs
The Altcoins market is on the rise as latest news report New York is in the process of providing financial regulations for Bitcoin and other digital currencies. We have suggested Mazacoin in our extensive market research but would like to cover some of the newest cryptocurrencies in the market to highlight how the Altcoins market is evolving. One of the latest cryptocurrencies that caught our attention is CryptographicCoin (CRT Coin).
The Altcoin uses Scrpyt as its algorithm, rewards miners up to 8 coins for solving a unit (Proof of Work, PoW), up to 2 coins for Proof of Stake (PoS, explained later) and max 100 million coins. The mining rewards (PoW) is halved every x64 multiplied by the mining difficulty (XXX at the time of this writing) and may take up to 30 minutes for solving a block. The PoS is also halved every x64 multiplied by its difficulty. At the time of this writing the difficulty is 0.03124954. The PoS rewards (or interest) are paid up to 10 minutes. For PoW CRT Coin Coin mining CGMiner can be used.
CRT Coin is a hybrid of PoW and PoS technology. We will discuss it throughout the research to understand why it is classified an as the next evolutionary step in the Altcoins market. We are going to explore some of the features of the new digital currency offers and how it differs to the traditional Bitcoin.
What is Proof of Stake?
New alternative currencies are beginning to adopt Proof of Stake (PoS) security as well as Proof of Work (PoS). In Bitcoin, miners encrypt the blocks via SHA256 and solve an algorithmic problem in order to be rewarded. Miners will have to deploy a great amount of hashing power via expensive hardware, which in turn result in high electricity consumption. The security threat of cryptocurrencies that are mined via proof of work is known as a 51% attack. If an individual or a certain group controls more than 50% of the hashing power in the network, double transactions can be easily implemented in the network. Proof of Stake offers a solution to such security threats.
Let’s first understand what is Proof of Take. The process of PoS is referred to as minting rather than mining. The investor holds the coins in his or her account for a certain amount of time and is rewarded in accordance. The more coins that are held in the account, the higher the return would be. By exercising Proof of Stake the 51% cannot be established as the hacker must also have a substantial amount of coins in his account aside the hashing power. Cryptographic coin introduces PoS mining or minting in a CryptoBank on The Onion Router (known as TOR) network. If you are wondering why TOR, the answer is simple, to eliminate Distributed Denial of Service (DDoS) attacks. All the coins are kept in a common wallet for generating new blocks. The CryptoBank contains interesting features as we will soon discover.
CRT Coin Proof of Stake Mining Pool
This feature is unique to CRT Coin, a joint mining pool for PoS. The first step is to go to bankmyoarpabtfai.onion via TOR and register with your CRT Coin purse. You will be redirected to a link that is similar to bankmyoarpabtfai.onion/account/123456 but the last numbers will be different of course. This link is your only access to your account in the CryptoBank. If you lose the link you will not be able to withdraw any funds from your account.
When your balance in the ‘mined’ filed exceeds 1.01 CRT Coin an automated payment will be made to your purse that was provided during the registration. There is another field called ‘Mining Power,’ which is extremely important. It is progressive bar that will reach the top (‘extreme’) within 30 days of the deposited coins to your account in the CryptoBank. If you cancel your deposit during the 30 days your coins will be sent to you but without the reward. Instead, the reward will split amongst the account holders in the bank. At the end of the 30 days you are able to withdraw your deposit with the reward. ‘Extreme’ indicates your deposit is in its most effective stage for mining, you have the choice to keep the deposited coins in the account or withdraw everything including the rewards.
If you haven’t noticed how secured the CryptoBank is, even if it is hacked the hacker can either cancel your deposit, in which the coins will be reverted back to your purse or deposit coins from his purse to yours. The hacker will be unable to steal anything from your account. We believe this is the next evolutionary step in the digital currencies market and we are expecting to see more cryptocurrencies adopting a similar feature. The future is unfolding in front of us and it is merely a matter of time before the traditional financial system will mutate in order to meet the glamorous digital era.
Source: CryptoBank (use Chrome)
Investing in Altcoins possesses a great risk due to their volatile nature and flimsy exchanges. However, regulations are being drafted to ensure the safety of the investors’ capital. We believe the markets are about to enter an extremely volatile phase as hedge funds such as Global Advisors Bitcoin Investment Fund (GABI), Pantera Capital and Coin Capital Partners enter the digital markets. If you were unaware of cryptocurrencies until now you may have realized it gaining extreme popularity if hedge funds are diving into these markets.
A UK-based custodian service for holding Bitcoins called ‘Elliptic‘ is our suggestion for trading Bitcoins. Elliptic is offering custodian services for holding Bitcoins for large investors. Your Bitcoin holdings are fully insured in case of an internal or external theft, being the ultimate choice for seasoned traders. Elliptic is another sign the digital currencies market is evolving. Although most of our trade alerts at the time of this writing are in Forex, Commodities, Indices and Stocks we too are bound to evolve to meet investors’ demand for crytocurrencies.
It is rather early to determine if Cryptographic coin has the potential for a long-term investment. However, we are entertaining the possibility of MTGox bitcoin holdings will be fully liquidated and distributed amongst investors that have lost their capital when bankruptcy was declared. In such a scenario Bitcoin may take a hit, forcing investors to seek an alternative. If Cryptographic will be able to establish a solid ground at the beginning of 2015 we may consider it as medium-term investment.
We will continue observing the global markets and issue trade alerts when found relevant.