BlackCoin is an interesting altcoin with a few features that set it apart from the usual cryptocurrency. Launched back in 2014, it has managed to make some waves but unfortunately is experiencing a downturn. This is not a surprise considering the harsh competition found in the cryptocurrency field among other altcoins. If you plan to buy into BlackCoin, here are some of the basics.
The main reason for BlackCoin’s creation was to prove the reliability of the proof-of-stake system for mining and confirming transactions. Most of the initial alternatives to Bitcoin followed it in its path of using the proof-of-work system for transaction confirmations. The criticism against proof-of-work is that it is slow and the network can get overloaded. With proof-of-stake, everyone participates and this is what BlackCoin’s developers want.
The way it works is that users stake coins from their wallets on the right to verify the next transaction, instead of trying to compete with other people making calculations. Those who are can stake the most coins will win the right to verify the next transaction. If the block of transactions they try to verify doesn’t match with what gets accepted by the system, the staked coins are lost. This means there is an incentive to give the right results.
Proof-of-stake systems do not have processors to compete with other people, and this means there is less requirement of power than proof-of-work systems. Additionally, because the system already has the processor tagged, transactions are done more quickly. The main advantage of BlackCoin is that its developers have claimed to have solved a lot of the security problems involved in using a proof-of-stake system with its proof-of-stake 3.0.
BlackCoin: Yes or No?
The big question for many people is whether they should be adopting BlackCoin or not. There are a couple of advantages of doing so. The first one is that the proof-of-stake system is very effective. Transactions are done quickly with less power requirements.
The second advantage is the fact that the BlackCoin community is very dedicated and welcoming. People who want to get into BlackCoin will be welcomed with open arms and will get a hang of things quickly.
There are a couple of problems, though. The main one is that BlackCoin’s value can be measured in cents. It’s pretty low in the altcoin totem pole. Another problem is that BlackCoin has only one distinguishing feature: its proof-of-stake system. Bitcoin shares many of the same features and is considered more valuable.
People should think long and hard about whether or not they should adopt the BlackCoin cryptocurrency because of these factors.