Category Archives: Crypto Comparisons
The altcoin market has been absolutely blowing up over the past few months. Litecoin has been getting some major attention from global exchanges and just started trading on the popular bitcoin exchange BTC China in early March. This event has marked a transition in the cryptocurrency environment as more light begins to shine on the innovations of the altcoins market.
Bitcoin and many major altcoins of today have already experienced much growth since they were introduced a few years ago. These coins have inevitably benefitted from having a first-mover advantage, however since then, technology and our understanding of cryptocurrencies have improved. Regardless of industry or practice, the first-mover very rarely becomes the dominant player in a certain field after an extended period of time. This same logic will become true of cryptocurrencies over the next few years as bitcoin’s first-mover advantage looses its lustre compared to the sheer brilliance of the innovations that are happening in the altcoin market.
So far in 2014, we’ve seen some phenomenal altcoin launches, most notably being Mintcoin, Aircoin & Heavycoin. Each one of these altcoins brilliantly addresses a specific issue that is commonplace to cryptocurrencies today.
Mintcoin began as a PoW/PoS hybrid coin which was mineable for a five week period. Every week, the block reward would halve until it reached 1 coin per block which is where it is today. From here on, the rest of the Mintcoin supply will be produced through Minting, which is essentially earning interest on coins that are held in a wallet. This proof of stake system is a much more energy-efficient and eco-friendly alternative to traditional mining.
Another great altcoin backed by a professional team is Aircoin. Aircoin’s block reward is based off of its exchange rate and will be increased or decreased to counteract changes in price. This type of innovation is necessary to continue to solve the issue of volatility in the cryptocurrencymarket. Judging by Aircoin’s healthy exchange rate at Poloniex and the stability of trading so far, it looks like Aircoin is on the path to tackling this issue once and for all. Volatility is precisely what holds many merchants back from accepting cryptocurrency payments so stability is essential for achieving widespread adoption. Also to double-down on their initiatives of stability and growth, Aircoin employs an investing pool combined with automatic trading algorithms to create a rising exchange rate, no inflation, eliminate transaction fees entirely, and regulate the price in the short-term. This is one coin not to miss.
And finally to round-off this edition of Innovative Altcoins Of 2014, is the cutting-edge technology of Heavycoin. Heavycoin has an ultra-secure hashing function that combines SHA-256, Keccak-512, Grøestl-512, BLAKE-512 resulting in a halo-effect of perfection. Heavycoin is also multi-pool resistant since it uses a Temporal Retargeting System whichguarantees that the network will recover in about 3 hours time. The hashing side of cryptocurrencies are very important to their structural design and efficiency. Heavycoin has taken all of the cutting-edge technology and combined it into one coin while adding other innovative features into the wallet such as a cheat-proof decentralized voting system. This addition takes community involvement to a new level since it allows users to vote on whether the total coin limit will be 128 million or 63 million coins. These types of decisions that directly effect the community should also be decided on by the community, which is exactly what this feature entails.
Discovering innovative altcoins such as Mintcoin, Aircoin & Heavycoin in their infancy stage will pay off immensely in the future when more light starts to shine on this industry. The future innovations of cryptocurrencies will truly lie in the altcoin market as unique ideas and concepts become a reality.
Stefan Molyneux and Andreas Antonopoulos discuss the fall of Mt. Gox, the greatly exaggerated death of Bitcoin, the joy of failure within the Bitcoin economy, the incredible opportunity Bitcoin provides those without access to the modern banking system, and the difference between Bitcoin and the Federal Reserve System and fiat currencies worldwide.
Andreas Antonopoulos is the Chief Security Officer of Blockchain.info, a host on Let’s Talk Bitcoin and an expert on Information Security and Cryptography.
I will explain through visuals how Bitcoin/Litecoin (or any other crytpto coin) transactions work, how miners come in and how your wallet works and is secure.
Reasons why FastCoin (FST) should be part of your crypto portfolio.
Many people believe that it is risky to accept Bitcoin as payment, however this simply is not true. There is no currency risk involved in accepting bitcoin with BitPay.
Word is out that the fastest complete transacting crypto currency in the world, FastCoin (FST), is now listed at Crypt Market Capitalization, a website that lists various cryptocurrencies according to market capitalization. Updates include price movements, graphs and more.
With its highly qualified and motivated core development team, strong social media presence, rising popularity and primary innovation of being the fastest digital currency in the cryptocurrency ecosystem, FastCoin has a bright future ahead.
Toronto, CA – December 17th, 2013 – In late May 2013 FastCoin (FST) was launched; its primary innovation being to have the fastest transaction speeds of any digital currency currently in existence. Compared to Bitcoin’s 10 minute block times the FastCoin network has just a 12 second target block time with transactions fully confirming in 48 seconds. Based on the same fundamentals as the Bitcoin protocol FastCoin is a blockchain based, decentralized, peer 2 peer worldwide digital currency with no central issuing authority. FastCoin has seen a rapid rate of adoption, with the coin’s market cap reaching $1 250 000 USD in late November, and the official website, http://fastcoin.ca, seeing constantly increasing traffic and serving thousands of unique hits every month. The coin is backed by a team of developers and FastCoin enthusiasts from all over the world; including the USA, Europe, Australia, UK, Russia, China, Brazil, Argentina, South Africa, India and more.
Continue to read at the source: http://finance.yahoo.com/news/introducing-fastcoin-world-fastest-bitcoin-034200886.html
Does fast transaction time matters? Some claim that fast transaction time and/or speed don’t really matter when it comes to cryptocurrencies. Is this true? We address the issue in this article.
Pete (a.k.a. toknormal) noted the following at the Bitcoin Forum. Our remarks are in bold:
I am a professional eCommerce systems developer and this is something that has been bothering me for a while regarding coins which are promoted as being “fast”.
The only advantage I can see of a coin having fast transaction times is for use at POS (Point of Sale) terminals. However, if cryptocurrencies ever get near supermarket checkouts, I think it’s very unlikely that people will be doing actual blockchain transactions right at the checkout. – Are fast transaction times at POS terminals the only advantage of a fast cryptocurrency? What about transactions where ordinary folks like you and I choose to transact, especially when the value of the product/service bought, sold or traded is very time-sensitive? In terms of supermarket checkouts, logic dictates that actual block chain transactions could be done right at the checkout if you’re dealing with a fast cryptocurrency. E.g. transactions in FastCoin (FST) can be completed within 48 seconds! Now even if the only benefit of fast cryptocurrencies was to reduce the transaction time at POS, wouldn’t you say that is an excellent benefit on its own, especially when security is not compromised? Yet, Pete and others wish to claim that “there’s very little advantage in pushing transaction times for “cryptos” below the level of a few minutes because they’re not going to be manifesting themselves at the point of sale anyway.”
What’s likely to happen is that transaction clearing houses like Visa and Maestro will handle the transaction at the point of sale and then carry out the actual “underlying” money (in this case blockchain) transaction as they do today. – Yes, a clearing house will be needed when you’re dealing with slow cryptocurrencies at POS terminals, but why add a third party to the transaction if it is not really needed or required? Again, transactions in FastCoin (FST) can be completed within 48 seconds, without the need for a clearing house or the additional cost it will bring. What is the point of a cryptocurrency if you cannot exclude parasites to the greatest extent possible, even if it means you have to wait a couple of seconds longer? However, when it becomes minutes and hours, then it certainly becomes an issue.
What people need to understand is that there is a whole industrial layer *on top* of the real money system which takes care of buffering the waiting time away from the customer at the point of sale. That “clearing house” layer also has time to resolve problems like the occasional delay etc. – We’re dealing with cryptocurrency here, not your traditional money system or transactions within a traditional money system. So what is his point exactly? Apples should be compared to apples. To hell with the “whole industrial layer *on top* of the real money system” (or the parasites for that matter lol). Who needs a parasite when a transaction can be concluded by two parties without the need of a third party, especially when the third party doesn’t really add anything of value? A huge part of what makes cryptocurrencies super beneficial is the fact that parasites can be excluded to a great extent, especially in transactions where one currency doesn’t need to be exchanged for another. Yes, one could argue that other users in the block chain are third parties needed to complete transactions, but the fact of the matter is that they are not parasites that add extra layers of cost without adding any value. They add value in a mutually beneficial manner. This is why peer-to-peer networking, one of the primary drivers of cryptocurrencies, is so effect. It is about a team effort to unleash value to the greater whole, not about a parasite that wish to add an unnecessary cost layer, which is not to the benefit of the whole or even most individuals. Thus, common interest gets placed before self-interest, but both the individual and the group or team benefit, not only a selective few.
You can see this today – when you pay for your supermarket goods and leave the place, the transaction won’t show up in your bank account for a while. That’s because the supermarket POS systems are not actually doing the money transfer – only sending a number to a server which instructs the clearing house to debit an account. This process is extremely fast. It also allows for problem resolution without bothering the customer. cryptocurrencies are never going to get near this level of “smoothness” and performance because crypto’s are doing everything at once – they are both handling the point of sale support AND doing the underlying money transfer. – Again, he is using the status quo or the way how transactions are done in the traditional money system as a point of reference, which is completely off-based when you’re dealing with a fast cryptocurrency such as FastCoin (FST). Why add an extra layer(s) when it is not really needed or required? I mean, when given the option, why will folks not choose to wait 48 seconds for a transaction to complete if they know it will cut out the middle man and/or an extra layer of cost? In fact, even if a clearing house becomes a necessary evil, it will make more sense to even them to deal with faster cryptocurrencies, especially when it comes to day-to-day transactions that can quickly amount to millions of transactions. We mean, the value of cryptocurrencies can change immensely within a couple of minutes, can one really believe that clearing houses will want to take that sort of currency risk, especially considering that they will want to swap different cryptocurrencies in order to manage their risks? Perhaps yes, but will it not come at a hefty price to the consumer and introduce many unnecessary and/or hidden costs? In addition, why should merchants be held ransom by clearing houses?
So my thinking is that there’s very little advantage in pushing transaction times for “cryptos” below the level of a few minutes because they’re not going to be manifesting themselves at the point of sale anyway. That “clearing house” layer is always going to be needed. – Yes, there is “very little advantage in pushing transaction times for “cryptos” below the level of a few minutes”, when you’re not really comparing apples to apples. Fortunately many can compare apples to apples, and do for one, appreciate the fact that some apples fall faster from the tree than others. This is not say or claim that slower cryptocurrencies should be excluded or have no benefits, it is rather to say that faster cryptocurrencies cannot be excluded on account of the reasons stated by Pete (and others who share his sentiment). We mean, who likes to wait hours or days when money could have been in his/her account within 48 seconds (using FastCoin (FST) as an example), especially when there are no additional costs involved in facilitating a transaction?
What I think is that there are 2 optimal transaction times for “cryptos”
 – sub 5 minutes is very good because it competes well with banks doing “real” money transfers. It’s also a reasonable waiting time for email confirmations for internet transactions. – We agree, but how about sub 1 minute? In fact, why do Pete state that there is “very little advantage in pushing transaction times for “cryptos” below the level of a few minutes” and that there is “very little advantage in pushing transaction times for “cryptos” below the level of a few minutes”, but admit “sub 5 minutes is very good because it competes well with banks doing “real” money transfers”? Now based on Pete’s logic, but not on his conclusions, then sub 1 minute should be construed as excellent, because it should even take the banks doing “real” money transfers to the cleaners. This is assuming Pete is correct when he claims that sub 5 minutes are enough to effectively compete with the banks. We mean, there is a notable difference between less than a minute and a minute, not even to mention the difference between 1 and 5 minutes. This is especially true if you consider the fact that it takes 48 seconds to fully complete a transaction in FastCoin (FST).
 – sub 1 minute MAY be good for certain limited things like buying a train ticket at a station platform – We don’t get it. So “sub 1 minute MAY be good for certain limited things like buying a train ticket at a station platform”, where speed is of the essence, but not necessarily at POS terminals, because it is for one claimed that clearing houses will be needed? To be brutally honest, even if fast cryptocurrencies are only used to buy train tickets at station platforms, can you see the huge benefit of this alone?
 – pushing it further than that is a waste of time. POS is never going ot be doing direct blockchain interaction. Even 30 seconds is far to long for a supermarket queue and the vendor is exposing themselves to far too much risk in having to support the full underlying money transfer – Again, we beg to disagree on account of the reasons already stated.
So I think coins, having got the transaction times down to sub 5-minute, should just forget about performance and concentrate on socio-economic issues (like distribution) and reliability. – Ok, so based on Pete’s take, then all cryptocurrencies should forget about performance. We say this, because how is performance improved, when cryptocurrencies offer complete transaction speeds of 5-minutes or more?
In conclusion: The ability of a cryptocurrency to ensure that transactions get completed in a quick manner does matter. This is despite the best of claims to the contrary. In fact, it will not surprise us the least bit if the market choose to place a higher value on such crytocurrencies at the end of the day, especially when security is not compromised. Since when does speed not matter, especially when it comes to the time it takes to fully complete a transaction, while excluding as many parasites as possible in the process? If you share our sentiment, you might want to consider an investment in the fastest cryptocurrency.
Which cryptocurrency is the fastest? Now we’re not trying to establish which cryptocurrency is the fastest in terms of mining (or anything along those lines), but which one is the fastest in terms of transaction speed.
In other words, to rephrase the above question: Which is the fastest complete transacting cryptocurrency? Now in order to establish this, we have to consider two factors in our comparison, namely:
– Block Target/Time
– The Number of Confirmations Per Transaction
We have to take these factors into consideration for each cryptocurrency and then establish which one is the fastest in terms of transaction speed (while keeping security considerations in mind). Now how do we calculate the transaction speed? We take the Block Target/Time and multiply it with the Number of Confirmations Per Transaction.
Now it must be noted that each confirmation exponentially decreases the risk of a reversed transaction. The higher the number of confirmations, the better in terms of security, but this of course can impact negatively on transaction speed. So the ideal is to maintain a balance between security and speed. Therefore, firstly, let’s assume 4 confirmations per transaction should be an absolute minimum in terms of security, and secondly, let’s assume theoretically that all cryptocurrencies allow at least 4 confirmations per transaction. This is certainly not 100% true in all instances, but we don’t wish to lower the number of confirmations to the point where it becomes pointless in terms of a comparison, especially when security is largely compromised. If it makes any sense, any such comparison should cater to a higher instead of a lower standard, there must be a healthy balance between speed and security.
Now moving forward, our focus will only be on the cryptocurrencies that are listed here (as taken on December 5th, 2013). Furthermore, only those with readily available info pertaining to their block target/time were included. Ok, so let’s go ahead and list them from the fastest to the slowest without getting too technical about it…
Now the above is by no means a perfect breakdown and/or comparison (especially considering the ‘spelling mistakes’ in red lol). In fact, we might have the cat completely by its tail (or balls for that matter lol). However, it should be pretty clear, even leaving the comparison aside, that FastCoin (FST) is the cryptocurrency that offers the fastest transaction speed in the world (while not compromising on security). This for one makes FastCoin (FST) the perfect e-commerce solution, something investors should take note of, especially at current price levels. Thus, the following claim made at their website seems to be grounded in fact:
“FastCoin is quickly becoming the biggest internet sensation since Bitcoin. Merchants are quickly realizing the benefits of Crypto Currencies and FastCoin is one of the special Crypto coin’s which makes this technology practical to use in everyday commerce. FastCoin is currently THE FASTEST Complete Transacting Crypto currency in the world, without sacrificing security! Our engineers were able to develop a 12 sec per block transacting coin which is ideally suited for today’s time sensitive needs. As the general public slowly realizes the benefits of Bitcoin, early adopters of Crypto currencies will quickly understand the value in the role that time plays, specifically when conducting everyday transactions” (FastCoin Website).
As a side note: We initially wanted to spell cryptocurrency, “crypto currency“, and cryptocurrencies, “crypto currencies“. However, it seems more people Google the words bonded than loose (whether correct or wrong lol).