Mastercoin, which has been rebranded as Omni, is a cryptocurrency that adds to the Bitcoin blockchain. The result is a new cryptocoin that works similarly to Bitcoin and even have advanced features that it did not previously have. What it brought to the table was a way for other cryptocoins to use Bitcoin’s blockchain without needing to build new networks or infrastructure.
The white paper that described Mastercoin was released back in 2012. It managed to get a lot of support and was officially launched back in 2013. This launch was done via a fundraiser that allowed anyone to buy Mastercoins using Bitcoin. Considering that Mastercoin cannot be mined, this was the primary way to get Mastercoins. It managed to get half a million in funding.
Mastercoin has three features that set it apart. First is its use of a distributed exchange. Layered over the Bitcoin network, it allows personal money transfers, payment fulfilment, issuing user currencies and more. The second feature is that it has blockchain price feeds. This helps make cross-currency trades easier. Finally, Mastercoin has an added layer of security against fraud since it saves addresses and bolsters security for large savings accounts.
Despite a good start, it faltered a bit. However, as the only crypto 2.0 protocol that had a tested platform, people have turned to its projects like decentralized recordkeeping network Factom, decentralized Internet provider MaidSafe and currency-backed token project Tether. However, it is facing difficulties in the marketplace.
The main problem is that it is not being adopted. Since Mastercoin mining is non-existent, there are not many ways to get more. Since it was all pre-mined, those who have Mastercoin now are the ones who control its flow. The result is that not many people have access to it, and this reduces its demand.
For those who want to get their hands on some, there are two ways. First, there is the Mastercoin faucet. The website rewards users with small amounts of Mastercoin. It was initially sponsored by the Mastercoin Foundation to allow users to become familiar with the altcoin. To get a reward, a user must use one of the seven available authentication methods. This is usually done on popular social network sites and can earn person a few cents worth of Mastercoin.
Another way to get Mastercoin is by acquiring it by being paid or buying it on an exchange. You’ll have to be eagle-eyed, though, since such sales and jobs are not frequent. Monitor the altcoin forums for anyone wishing to pay or sell Mastercoin if you want to acquire some.