With all the different digital currencies in the world, there’s a lot of pressure to push the envelope. While Bitcoin is the first digital currency, the market is flooded with new altcoins every day. Because of this, altcoins are expected to make technological advancements to digital currencies that improve the end user experience, or fail by not trying. That’s where Vericoin is stepping up to the plate.
[divider] CCN [/divider]
Join CCN for $9.99 per month and get an ad-free version of CCN including discounts for future events and services. Support our journalists today. Click here to sign up.
In May, Vericoin developer Patrick Nosker, along with co-developers Doug and David, announced their new digital currency because they were fed up with the technologically stagnant altcoins markets they saw.
“We were investors and owners of other coins, but were very disappointed in the lack of innovation and general stagnation in all coins besides Bitcoin,” Patrick told CCN, “We were also tired of pump and dump schemes that got the developers very rich for almost no additional work.”
Right off the bat, Patrick pointed out two problems the digital currency community is currently facing. Pump and dump schemes are a plague on the digital currency landscape, and some altcoins doing the bare minimum to release new currencies.
So Vericoin has done their best to challenge the other currencies on the market, literally. They’re already on Mintpal, Cryptsy, Bter, Bittrex and other exchanges after only a month. Currently valued at $0.07 USD, Vericoin has seen the growth that other currencies envy in their month-long lifespan. But why?
It looks like the reason is that Vericoin is looking to push digital currency further and advance knowledge of their uses further. I do not hold any Vericoin, but I do agree with the passion the developers are showing to challenge the state of digital currency technology.
VeriBit – Use Vericoin Anywhere Bitcoin is Accepted
First and foremost, Vericoin wants to change the way altcoins do business. That’s why their developing and testing VeriBit, a way to pay with Vericoin to vendors that accept Bitcoin.
“You’d go to a website that accepts BTC payments such as Overstock.com. You then take the BTC address and amount you must pay and input it to VeriBit,” Patrick said, “You then will get a Vericoin value that you must pay to send that amount of Bitcoins to Overstock.com. If you accept it, the Vericoins will be sent to the VeriBit system, and it will then convert the VRC to BTC and pay Overstock.com the exact amount required.”
Another key feature of Vericoin is the ability to send it via text message. While digital currency users are able to send through Twitter, Reddit and the newly acquired Facebook, SMS is a less used landscape that could prove to be popular.
According to Pew Research, in 2011 83% of American adults owned cellphones. Of that percentage, 73% send and receive text messages daily. It’s a technology that people are used to, and may have confidence adjusting their financial life toward.
“The SMS wallet works across the world with a documented transaction from the United States to Europe, with minute-scale transfers and a fee of 0.001 VRC,” Patrick said.
While this feature is still in development by a third party developer, it looks to provide something to the digital currency community that they’ve wanted for quite some time. The VeriBank concept will hold Vericoin in a “checking” or “saving” account, with funds in the savings account earning Proof of Stake interest while in cold storage and funds in checking residing in a hot-wallet.
It is still in development, but the concept is intriguing to say the least.
To encourage people to use Vericoin, the developers are trying to incentive their users. Vericoin has an interest rate that it pays to users that the developers hope will secure the network.
“The more coins staking, the higher the interest rate,” Patrick told us, “It scales according to the network stake weight.”
Recently, Vericoin has sponsored Chris Pirillo, a YouTube blogger producing three videos a day. They’re also looking for funding to go to the North American Bitcoin Conference in Chicago using StartJoin, a crowd funding site. They will be releasing their new wallet there during a video stream.