Despite launching with no fanfare, and overcoming a hard-fork early in development, Blackcoin today sits ranked #6 by market value, and #3 by trading volume – an impressive feat considering how cluttered the cryptocurrency market is.
CryptoCoinsNews’ own Vasilije Markovic (Serbian contributor) had a chance to speak with the developer behind Blackcoin, as well as the Community Manager and other investors. We wanted to know what sets Blackcoin apart and what drives them into the future – and they provided ample answers.
Proof of Stake
Proof of stake is the process by which Blackcoin secures the network; it rewards those who hold Blackcoin with roughly 1% annual interest on their holdings. Instead of proof of work, which Bitcoin uses, rat4 (developer of Blackcoin) felt proof of stake was important for security reasons:
Proof of work mining turned into madness. People mine to get profit instead of secure coins, and halving the mining reward loses miners – and security. It’s a big problem, proof of stake looks like a good replacement.
Community Manager Soepkip added:
I think mostly it’s a way to finally proof that Proof of Stake has a place in this world. Originally Satoshi Nakamoto envisioned his bitcoin project to be mined with your own computer at home. Proof of Stake does that.
It’s security needs to be tested longterm.
You can see the [security risk] effect [of proof of work] with Dogecoin. How many times have you seen a certain mining pool with 51% of the hashing power.
The concerns of mining pool hash-power are not unfounded, just this week Wafflepool surpassed 51% hashing power on the Dogecoin network, as covered in our weekly Dogecoin addition.
The Inflation Problem
Because proof of stake will reward Blackcoiners with 1% annual interest, many were worried about inflation, even if it is very small in proportion to other digital currencies current inflation. Early adopter @maarx commented:
People were doing calculations. That because of “inflation,” Blackcoin would only need 0.02 bitcoins per day to “maintain value.” So people said, “let’s make a multipool to increase distribution and get value into Blackcoin.”
(He is describing the Blackcoin multipool which mines profitable alt-coins and uses the generated funds to pay miners in Blackcoin.)
(Soepkip) Someone eventually stepped up (due to a bounty) and built one. Sadly, that got so popular that the guy burned out basically, and immediately Legion Development Group stepped in.
(Vasilije) Are you guys satisfied with how are things developing?
(Soepkip) They took over, rebuilt the multipool from scratch and after about three weeks of beta it’s now where it is at. The outside world sees our Multipool as the ‘Shitcoin killer,’ while it is actually not.
Our multipool provides liquidity for other coins since we do not dump on them, we trade manually and via algorithm trading.
Currently Blackcoin’s official multipool provides about 20 BTC in volume a day, compared to the 4,200 BTC in volume that Blackcoin had in the last 24 hours. The team we talked to insisted that the multipool is merely a support for the larger Blackcoin ecosystem, as it also provides a hub for the community.
Investing in the Future of Blackcoin
Blackcoin had a big week; Coinkite began supporting Blackcoin, value soared, and rumors of outside investment circulated. While those we talked to see Blackcoin as a store of value to contend with the major digital currencies, they did make it clear that resting on their laurels is not an option:
(Soepkip) I think the next big hurdle is getting on the bigger public’s radar, and that is what most of the projects are geared for.
(Dibdab, an early investor) We might have a really super cool hardware giveaway for the miners later, like for real cool
(Soepkip) Yes, that hardware give away is going to blow people’s mind. We have several project groups these days. Mostly geared towards promoting the coin inside and outside the cryptoworld.
(Dibdab) The development is just mind boggling. Things happen so fast, and the community is so driven for Blackcoin. If you are AFK for a day you have no idea what is happening.
(Soepkip) Indeed, I’m afraid to go to sleep these days. I just napped before the interview and people are again asking me questions about stuff I don’t even know yet.
They emphasized repeatedly how important community is, a trait that lead to much of Bitcoin’s early success, and is trumpeted by Dogecoin supporters fervently. They briefly discussed one member’s ambitious initiative, commenting, “we will see if he is able to prove himself;” reflecting a “put up or shut up” attitude that is the backbone of the open-source world.
What I gathered from our discussion with the Blackcoin team and investors is that they really do embody the open-source spirit. Forks, exchange bugs leading to theft, and speculation are no threat to Blackcoin – but merely the cost of trying something new, and is to to be dealt with as they are realized.
As a result, Blackcoin has been blessed by early adopters willing to re-invest back into the coin by organizing giveaways, finding outside investors, and building web-structure.
The negative in all of this is the constant pressure on alt-coins. Newer, more excited currencies are developed every day, and the introduction of side-chains threaten to reshape the entire ecosystem. What can’t be changed is exactly what Blackcoin is depending on – the community.
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