Review of Tezos Cryptocurrency: A Replacement of Ethereum or Another “Promising” Project?

tezos

Every year new blockchain-based projects appear that can accelerate the development of entire industries. We will talk about one of them today. So, what is Tezos platform: a revolutionary solution for creating decentralized applications or another scam project, the coins of which will soon be useless? Let’s figure it out.

Contents:

(please, click the topic to scroll down to it)

  1. Basic information about Tezos cryptocurrency
  2. Advantages and disadvantages of the platform
  3. Forecasts for Tezos
  4. Conclusion

1. Basic information about Tezos cryptocurrency

This project originated back in 2014, when the first round of its ICO was held, which collected an impressive amount of $18 million. Tezos is a platform, the main purpose of which is the creation of decentralized applications on its basis. You have already heard about something similar, haven’t you? Yes, the Tezos concept is very similar to Ethereum, but differs in its implementation and approach.

It should be noted that the Tezos algorithm is designed in such a way that it can receive updates automatically. That is, Tezos solved the issue with hard forks, which split the community of cryptocurrencies and are an integral part of such giants as Bitcoin and Ethereum. This property allows all members of the Tezos community to be always cohesive and indivisible. The PoS protocol guarantees the safety and fair voting of the participants in the system for solving pressing issues. For this, you need to store tokens on a specialized Tezos Wallet.

The development team is headed by the couple Arthur and Kathleen Breitman. Project advisers are very well-known personalities in the cryptocurrency industry, such as: a large venture investor Tim Draper, the CEO of the Zcash project Zooko Wilcox and others. Thanks to these people, the project was able to hold a very powerful second round of ICO in 2017 and collect about $250 million.

2. Advantages and disadvantages of the platform

The indisputable advantages of this project include:

  • the first blockchain, that solved the problem of hard forks, which will help all participants in the system to focus on the development of a single product;
  • a fairly well-known and strong team of developers, which also inspires optimism in the long term;
  • the level of trust and loyalty among investors, as evidenced by two successful rounds of the ICO;
  • high level of system security, which is provided by the PoS protocol (each network participant who keeps tokens on a special Tezos wallet can vote);
  • a scalable platform based on smart contracts, which can potentially be used in any business.

But like every project, Tezos has its own weaknesses, which we simply can not keep silent about:

  • disagreement within the development team, scandals involving embezzlement and lengthy litigation;
  • the forced KYC protocol, which led to the split of the network even before it was launched (it should be noted that the project was meant to avoid hard forks).

3. Forecasts for Tezos

The coin certainly has good support and might even replace Ethereum in the future. The developers have everything they need to implement these plans, the question is how they will use it. A huge impact on the development of the project has a trial.

Just the other day, the developers announced the launch of the first network, but so far in the test mode. Full-scale launch is scheduled for the third quarter of this year. This suggests that in 2018 Tezos still has every chance to give a good payback to its investors. By the way, the project has already grown by about 500% compared to last year. The coin rate at the time of writing stays at around $2.1 – $2.2, although, less than a week ago it was a little more than one dollar.

4. Conclusion

The Tezos project might replace Ethereum, but the developers still have a lot of work to do to achieve this goal. The beta version of the platform was launched in early July of 2018, and a full-fledged launch is scheduled for the third quarter of this year.

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Other Side of Blockchain: How Is the Technology Used Today?

blockchain technology

Today when we hear the word “blockchain” we think about Bitcoin, Ethereum and other cryptocurrencies. The distributed ledger technology as it exists now first appeared in 2009 together with the first cryptocurrency. Bitcoin, as well as the vast majority of digital currencies are based on blockchain. Probably the only exception is the project and the coin called IOTA that is based on Tangle technology and does not include blockchain. Anyway, it soon became clear that cryptocurrencies are just one possible way to apply the distributed ledger technology. Blockchain is actually a new and advanced way to store and exchange information, and if we stick to such a broad definition it will become clear how big is the potential of these technology.

Contents:
(please, click the topic to scroll down to it)

  1. What is blockchain technology?
  2. Blockchain and digital currencies
  3. Where is blockchain being applied and what are its prospects?
  4. Conclusion

1. What is blockchain technology?

To put it simply, blockchain is a kind of database, a way of its management. In fact, blockchain comes down to electronic recording of particular information;storage and amendment of this information must be coordinated between independent parties. The method of information storage with the help of blockchain guarantees impossibility of spontaneous information amendments by a user without other users’ concord. Blockchain resembles torrent, both technologies are based on peer to peer principle,where information exchange is carried out directly between equal participants.Every information record is a block. Blocks constitute a chain; so, every other block contains part of information from the previous one. All information of this distributed database stores on  computers of every net user.

2. Blockchain and digital currencies

Nearly all digital currencies are based on the blockchain technology. Cryptocurrency actually exists as a recorded information about transactions just like the real fiat money that we transfer between bank accounts. Digital currencies record, store and change their information using a distributed ledger technology. Many coins are based on the same blockchain. For example such currencies as Namecoin, Litecoin, Dogecoin, etc. are based on bitcoin blockchain. Ethereum blockchain was used to deploy more than 500 other cryptocurrencies, including such popular coins as  Binance Coin and OmniseGo. Some leaders of the cryptocurrency market also used to be based on Ethereum blockchain but later developed or at least started developing their own distributed ledger. These are, for instance, EOS – top-5th digital coin by market capitalization, and TRON. However many cryptocurrencies were not satisfied with what bitcoin and Ethereum could offer and designed their own blockchain. These are Ripple, Zcash, NEO, Dash, Monero, Cardano and others.

So, how blockchain is implemented in cryptocurrencies? A block is a special structure where the information about transactions is recorded. Each block contains the information related to the previous one, so they form a single chain where no one can edit the information on their own discretion. The whole information about what has happened in a decentralized database is recorded into the blocks. Each block includes a header and a list of transactions. Blocks are formed by miners that carry out calculations necessary to find hash. The main function of the distributed ledger is that it ensures cryptographically secured and decentralized storage of the information about transactions.

3. Where is blockchain being applied and what are its prospects?

Blockchain technology is quite cross-functional, because it provides us with the new method of information storage and exchange. In all areas where it is applied, blockchain functions as a universal database that almost cannot be hacked or amended without sanction. However, anyone who has the right can get access to the information. A great interest to blockchain comes from the finance sector.  Traditional banks and fintech startups pay their attention to distributed solutions that blockchain suggests.

Governments treat cryptocurrencies rather negative, but at the same time they realize blockchain potential. Some countries, like Sweden or Arab Emirates, plan switch their register of properties to blockchain.  Estonia develops mechanisms for blockchain-voting at shareholders meetings. Besides,there is e-Residency platform in the country — electronic identification system based on blockchain.

The world’s largest humanitarian organization called World Food Programme uses blockchain to provide refugees with food via existing shops and retail chains instead of directly distributing food or money to buy some.   

Smart contract technology that is realized on Ethereum blockchain is not restricted only to cryptocurrency transactions processing. It is a kind of new method of contractual arrangements where there is no need for lawyers,banks or other mediators.

Today blockchain is already being used for creating distributed cloud storages, where users’ data (including personal data) will be protected by cryptographic means.

4. Conclusion

Anyway, blockchain is definitely an important technology that is likely to increase its impact in the near future. World Economic Forum describes blockchain as a fundamentally new form of computer architecture that brings the opportunities that could be compared to those brought by the development of the Internet in 1990s and smartphones in 2000s. The potential of distributed ledger is obvious for businesses and even state authorities and many of them started applying the technology in a number of areas.

Blockchain appeared 10 years ago, which is actually quite a long time given the speed of scientific and technical progress. However, we can state that the real potential of the technology is being discovered today. Blockchain is actually a new useful way of storing and transferring information, while in the modern society it is perhaps the most important asset.

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Cryptocurrency Prices Today, September 22: Cryptocurrencies Are Unstable, Ripple Is Still Growing

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcоin (BTC) lost 0.74% in the past 24 hours. The price at the time of writing is $6652 per coin.

Cryptocurrencies stay both in the red and green zones:

Bitcoin Cash lost 1.70% over the past day and costs $473 per coin;

Ripple added 20.57% and is worth $0.56;

EOS grew by 1.87%, and its price is $5.89;

Litecoin increased by 0.71%, and its cost is $58;

Cardano lost 3.40%, and its value is $0.081;

Stellar dropped by 4.54% and is worth $0.23;

IOTA added 0.36%, and its value is $0.58;

Dash lost 3.3.1% and costs $200;

Monero decreased by 0.33% and is worth $119.

Ethereum added 3.97% over the past 24 hours. The cost of the coin is $235.

The total market capitalization is $221 billion. Bitcoin accounts for 52% of the total volume. It is $115 billion in monetary terms.

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HitBTC Added the Gemini Dollar Owned by Winklevoss Brothers to the Listing

gemini dollar listed on hitbtc

The cryptocurrency exchange HitBTC announced on its Twitter the addition of the Gemini dollar, launched by Cameron and Tyler Winklevoss on the Ethereum blockchain, into their own list of trading positions.

Since September 20, customers of the HitBTC, which joined it this year, can trade with Bitcoin, EOS, Tether and Ethereum in pairs with the Gemini dollar. The HitBTC platform was the first exchange on the cryptocurrency market, which carries out operations with this stablecoin.

We remind you:

OKCoin Adds Five New Tokens to Its Listing

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Another Client of Vitalik Buterin’s Ethereum 2.0 Has Been Revealed

buterin

The last few weeks have not been particularly happy for Ethereum holders. Its price plummeted down, and people started to sell the coin rapidly.

We remind you:

Why Did Ethereum Face a Record Fall And What Should Investors Do?

Vitalik Buterin took quick measures and introduced Ethereum 2.0 – a new version of ETH with a lot of improvements and upgrades.

Shortly after Buterin announced a new official client of Ethereum 2.0.

The project is called Lighthouse, and it specializes in the proof-of-stake protocol and sharding. According to the article posted on their site:

The Ethereum 2.0 spec captured our attention and we were confident that we could apply our resources to the project to help realise it.

Hopefully, Ethereum 2.0 will boost the exchange rate of the coin. We have to wait and see. Meanwhile, we offer you to take a look at some merch in support of Ethereum and other cryptocurrencies:

Do Not Sell Ethereum: Top Original Clothes Prints in Support of Cryptocurrency

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Cryptocurrency Prices Today, September 21: Bitcoin and Ethereum Are in the Green Zone, Ripple Rose by More Than 40%

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, over the past 24 hours Bitcоin (BTC) added 4.51%. The price at the time of writing is $6699 per coin.

Cryptocurrencies are showing positive dynamics:

Bitcoin Cash added 12.86% over the past day and costs $480 per coin;

Ripple added 41.76% and is worth $0.46;

EOS grew by 10.57%, and its price is $5.78;

Litecoin increased by 7.14%, and its value is $57;

Cardano added 16.18%, and its cost is $0.083;

Stellar gained 18.71% and is worth $0.24;

IOTA grew by 9.16%, and its value is $0.57;

Dash added 7.83%, and its price is $205;

Monero increased by 7.28% and is worth $119.

Ethereum added 8.43% over the past 24 hours. The cost of the coin is $226.

The total market capitalization is $217 billion. Bitcoin accounts for 53.2% of the total volume. In monetary terms, this is $115 billion.

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Mining Complexity: What It Is and Where It Will Get

mining complexity

Not long ago there was a real gold rush around cryptocurrency mining – thousands of people started digging digital rock to get the precious digital gold, while its rate was beating all records and surpassing all expectations. It all started from simple mining on users devices – laptops, personal computers, tablets, etc. – and turned into a complicated industry with a developed infrastructure. Mining pools appeared, specialized equipment (ASIC-miners) was produced, huge mining farms were set up, where mining was conducted on an industrial scale. Mining even partially switched to the cloud – services appeared that offered cloud cryptocurrency mining without any investments, except for financial ones. Although mining has not changed the structure of the world economy, it is nevertheless not an ordinary phenomenon. The fact that currently cryptocurrency mining consumes more electricity than many countries is a case in point.

Today we will talk about what mining complexity, its function, how it changes, what it depends on and how can it set the tone for the entire cryptocurrency mining industry.

Contents:
(please, click the topic to scroll down to it)

  1. Brief review of mining
  2. Complexity: how it changes and what it depends on
  3. What will happen to mining in the future
  4. Conclusion

 1. Brief review of mining

Mining actually means making computational operations to decode a certain algorithm and find its hash. Every mineable cryptocurrency is based on a particular hashing algorithm. When the algorithm is successfully decoded, a new block is added into blockchain, a new coin is issued and miners get their rewards. Many popular digital currencies can be issued only through mining, these are Bitcoin and its forks, Ethereum, Monero, Litecoin, Dash, Zcash, etc. Some, however, are pre-mined and do not provide mining opportunities, like Ripple, NEO, NEM, EOS, Tether, etc.

Depending on hash features, different equipment can be used to mine different digital currencies. Initially all mineable coins, including BTC, were mined on users devices (PCs or laptops) using CPU. Today it is not that common and there are a few popular coins that still provide such type of mining. Soon CPUs became not enough to profitably mine digital coins and miners started using graphic cards to cope with more resource-intensive calculations and growing complexity.

Later the specialized equipment appeared on the market – ASIC-miners that are used today to mine Bitcoin, as well as other coins, such as Litecoin, Ethereum, Dogecoin, Zcash, Bitcoin Cash, Litecoin, etc. ASIC is a specialized microchip that performs calculations much faster than graphic cards. Although ASIC today is mostly associated with mining, the technology itself was developed in early 1980s to advance graphic performance of PCs. Besides, miners create pools where they combine their processing power to make mining more efficient for the whole group. The reward for the created block is then distributed depending on the processing power provided by each pool member.

There is also another mining solution – cloud mining. Graphic cards and ASIC-miners are rather expensive, more and more of them are required to mine profitably. The equipment needs space to be placed, has to be connected to the power grid, cooled, cleaned, repaired, set up, monitored, etc. Cloud mining implies leasing of computing power from companies that manage large mining farms and data centers. In addition, cryptocurrency is mined in other sometimes even illegal ways. For example, your computer can be infected with a hidden virus-miner that uses its resources to mine a particular coin.

2. Complexity: how it changes and what it depends on

Complexity indicates how difficult it is to find hash. The specified hash parameters determine how difficult calculations should be to find it. The more users are there in the network and the more cryptocurrency is mined – the higher complexity is. Bitcoin complexity is reviewed every 2016 blocks (about 2 weeks) and depends on how much time was spent to mine previous 2016 blocks.

What is the function of complexity? Bitcoin is designed to add every new block in  10 minutes on average. This can differ from one cryptocurrency to another (2.5 minutes for Litecoin and up to 20 seconds for Ethereum). The amount of processing power in the network can drastically change over time – when Satoshi Nakamoto mined the first BTC, there was only one device in the network, probably a laptop or a PC. Today we have huge industrial farms with thousands of special mining devices.

To ensure the stability of the generation of new blocks, cryptocurrency software automatically makes it more or less difficult for miners to find hash. So if there are more miners and the computing power of the network increases, it is more difficult to find hash. If the power decreases – it becomes easier to make all necessary calculations. This is the way the system remains sustainable – no matter how much processing power is their in the network it will still take around 10 minutes to generate new Bitcoin block. In early 2010, Bitcoin complexity was just a little bit above 1, while in 2013 it was already 3 million. Today it has already exceeded 7 trillion.


Source: BitcoinEnergyConsumption.com

So, every 2016 blocks (about every two weeks), Bitcoin corrects its complexity, so that each block is generated in approximately 10 minutes, regardless of the number of miners in the system. Other mineable cryptocurrencies has the same role for complexity and it is implemented in a similar way.

3. What will happen to the mining in the future

Mining is no longer the same as it used to be – says… everyone. While some digital currencies can still be mined using PCs, it is rather difficult to join the “extraction” of most of the leading coins. To start mining Bitcoin today you should have… started mining Bitcoin a few years ago. The same thing is happening to other digital currencies, and ASIC-miners are to blame in fact. They are able to make calculations way faster and more efficient and wherever they enter the mining market, the total complexity increases and CPU/GPU-mining retires. However, some still manage to make money out of mining. There are still those coins that are not mined using ASIC-miners, which means one can still mine them on average laptops or PCs.

Anyway, one thing is clear – today, mining is no longer stands for easy money, and the market is being taken over by large, “professional” miners, who mine digital coins on an industrial scale. Industrial mining is associated with a whole range of logistics, legal and resource issues. Until recently, most of Bitcoin miners were located in China, but last year the government banned ICOs, cryptocurrency trade and mining. Another thing is energy consumption. Calculations require a lot of electricity, so the miners are looking for countries with lower power prices.

 

Source: BitcoinEnergyConsumption.com

Another problem is obsolescence of equipment. Many industrial miners have found out, that the hardware they used to mine BTC 2017 cannot ensure the same profit in 2018.

So, mining becomes less profitable and new members have no chance to join the market easily. This lead to the fact that mining of top coins becomes way less popular. Not mineable coins, as well as those who still provide available mining can take advantage of that. For example, in 2017 there was a boom for mining browser extensions (like Coinhive). Of course, browser-mining of Bitcoin or Ethereum sounds rather weird, but there is another relatively popular coin – Monero – that still provides such an opportunity.

4. Conclusion

So, complexity is one of the key categories that form a technical structure of mineable cryptocurrencies. Written in the protocol, it helps blockchain to remain sustainable in terms of the time necessary for the generation of new blocks. Complexity directly depends on the number of miners in the network and, accordingly, on the total processing power. Most of the leading cryptocurrencies have already became much more difficult to mine and this is obviously an ongoing process. There are more users, more special equipment and more professional industrial-scale miners which make mining unavailable for average users.  

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