There is no dearth of cryptocurrency projects that are aiming to solve the existential issues pertaining to scalability, privacy and decentralization in the crypto ecosystem. Few of them are likely to succeed in their ability to reach widely advertised goals of being a better cryptocurrency than Bitcoin or Ethereum. Among the multitudes of Bitcoin alternatives that are currently under development, we want to introduce our readers to two of our closely-watched projects, underpinned by novel technologies and with a huge potential to make an impact.
Algorand: Led by a team of MIT professors and backed by USV, Algorand aims to build a blockchain for payments that is easily scalable, frictionless and fork-free, by using a new consensus mechanism called Byzantine Agreement Protocol. Users will be randomly selected to add blocks to the blockchain with the probability of selection being proportional to the number of coins held by the user. Once the selected user adds a block, another group of random users are selected to verify the transactions in the previous block. The block finality is only achieved after a certain proportion of verifiers approve the block. Two of the biggest advantages of this novel technology is that no expending of computational power is required to add a new block and the lottery mechanism that selects users for adding and verifying blocks is extremely fast and independent of the number of users in the system. This makes the blockchain highly scalable and eco-friendly.
Grin:Grin is another payments-focused cryptocurrency that is the first software implementation for a new code proposal called MimbleWimble. The project reminisces Bitcoin in that it’s team comprises of anonymous developers with pseudonyms from the Harry Potter franchise. Grin is infinitely scalable because it does not have any addresses and amounts, and is not constrained by block size limits (such as Bitcoin’s 1 MB limit) that make it hard to develop new privacy features such as Bulletproofs and Dandelion (because they take up more space on the block). Grin’s emission schedule is perpetual and the inflation decreases with time.
“10 Cents Fees for $194 million!” Yesterday, a Bitcoin user moved 29,999 BTC, or $194 million with a transaction fee of $0.1, effectively countering the oft-pushed narrative against Bitcoin – that BTC transactions are too expensive due to high fees. However, the $194 million payment (which would have cost a small fortune in bank fees) on the Bitcoin blockchain demonstrates the potential of digital currencies to optimize cross-border payments significantly.
“OKEx Lists 4 Stablecoins” OKEx, the world’s third largest cryptocurrency exchange by market cap, has announced the listings of four new stablecoins – TrueUSD, USD Coin, Gemini Dollar, and Paxos Standard Token. Each stablecoin claims to offer a unique proposition – for example, Gemini recently engaged with a third-party company to provide insurance on its coin, while TrueUSD was the second stablecoin (after Tether) backed by USD at a 1:1 proportion.
“Coinbase to Move to Dublin for Brexit” US cryptocurrency exchange Coinbase will launch a new office in Dublin amid concerns over the impact of a Brexit deal. Coinbase will keep London as its European headquarters, but will expand to an office in Ireland to serve its European customers. Coinbase handles money from both UK and EU users, meaning it needs an office in the EU should the UK leave without a financial deal in place.
“MoonX to Launch DEX in India”The Switzerland-based technology startup MoonX plans to launch a decentralised non-profit trading platform for crypto currencies by the end of November this year. Started by a group of investment banking experts, MoonX has raised $29 million funding for its operations. After starting with crypto currencies, MoonX has plans to expand to trading of treasury bills, foreign exchange and commodities.
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