Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin Ultimatum Is Coming Out To Shake Crypto Industry

By Tanvir ZafarCryptocurrencyFeb 20, 2020 10:12AM ET
www.investing.com/analysis/bitcoin-ultimatum-is-coming-out-to-shake-crypto-industry-200509065
Bitcoin Ultimatum Is Coming Out To Shake Crypto Industry
By Tanvir Zafar   |  Feb 20, 2020 10:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Anyone who has paid even remote attention to the cryptocurrency market knows that it has evolved significantly. Cryptocurrencies have grown from being just some assets that no one hardly knew anything about to being the vanguard of the new age.

In a world where technology has pervaded everywhere, it’s not difficult to see the changes. Artificial intelligence is revolutionizing every aspect of work and human living, while the Internet of Things (IoT) is also changing the way we live. However, when it comes to payment and financial services, nothing stands even close to the type of influence that cryptocurrencies have had.

Bitcoin and its mining problem

As expected, the most popular cryptocurrency is Bitcoin. Apart from enjoying the incumbent power that comes with being the first, Bitcoin has grown to become a highly valuable asset for anyone who holds it. The asset fills several uses, including but not limited to payment, asset transfer, and even investments.

Currently, Bitcoin’s popularity is through the roof. Every developed economy most likely has a thriving Bitcoin community- with the sole exception of a few that have chosen not to accept it. However, the fact that Bitcoin is so popular doesn’t mean that it doesn’t also come with some problems of its own.

As things stand, the most significant or Bitcoin’s issues is its mining module- Proof of Work (PoW). When it was first introduced, PoW mining seemed like the perfect system. Given that it provided Bitcoin, many just went with the flow and continued to make use of it. However, things soon changed and the problems of this mining algorithm was eventually unearthed.

In a distributed PoW algorithm, miners will need to work with a lot of electricity. Research has shown that validating a single Bitcoin transaction will need the same amount of electricity to power almost 2 American households in a single day. This energy is paid for in actual money- a factor that has played a significant role in causing a downward pressure on Bitcoin’s value.

Proof of Stake isn’t perfect as well

So, developers began to worry that this problem will eventually cause Bitcoin to be less profitable to mine. There’s also the fact that the PoW mining algorithm for Bitcoin could led to some damaging effects for the environment- especially in places where mining farms are located and based. Rewards for PoW were also found to be non-proportional. In some cases, a miner could end up not owning any of the Bitcoin he or she mines.

For a cheaper and more eco-friendly distribution of access and coins, there needs to be a way to make things better.

So, in came Proof of Stake (PoS). In this mining format, the consensus mechanism is made virtual. The overall process might remain the same at the PoW module, but the method of getting to the overall objective is much different here.

In PoW, miners are made to solve difficult puzzles with their mining rigs. In PoS, however, we have validators instead of miners. These validators are in charge of locking up some of their currency as a means of maintaining some stake in the ecosystem. Then, they bet on the blocks that they believe will be added to the chain next. When the block that they bet on it added, they get rewards in proportion to the amount of their stake.

Bitcoin Ultimatum: Disrupting the crypto space with the LPoS and PoA algorithms

Then, there’s Leased Proof of Stake (LPoS)- a new algorithm that is bringing even more of a twist to the mining space. LPoS combines Proof of Stake (PoS) and Proof of Service (PoSe). Here, anyone is able to earn a cryptocurrency by leasing their coins to a supernode- as opposed to having to worry about purchasing masternodes or being a core member of a mining community. The coins leased are frozen up until a specific point, and when they’re released, the owner could get between 8% and 12%- depending on the leasing period.

The beauty of LPoS is the fact that you can quit leasing whenever you want. All you need to consider is choosing the right node operator.

LPoS is currently seen as the next big thing in mining, and it forms the basis of existence for Bitcoin Ultimatum (BTCU)- a new fork of the original Bitcoin blockchain that is set to change how cryptocurrencies are seen.

Bitcoin Ultimatum was created by the Prof-it Blockchain development team, with the support of the leading cryptocurrency exchange Coinsbit, which was co-founded by Nikolai Udianskyi. The asset combines Leased Proof of Work with Proof of Authority, with each handling the mining and transaction validation processes respectively. Upon the launch of the fork, an airdrop will be conducted to Bitcoin network users, so they can find the BTCU network. All you need to do is enter your BTCU wallet address, and you can join in.

The BTCU blockchain will use just 20 validators. This way, it prevents an increasing level of centralization that has also been a problem for PoW blockchains. 10 validators will be chosen by the development team, while the other 10 will be chosen by members of the community on the Proof of Authority basis.

The BTCU developers also understand the fact that a lot of people who step into the cryptocurrency space do so to enjoy greater degrees of anonymity with their transactions. To ensure privacy and security, the BTCU blockchain will utilize smart contracts which will ensure that users don’t need to employ intermediaries to protect themselves. In addition, the development team is working on launching a multi-currency crypto wallet that will provide users with the ability to send BTCU and other Bitcoin-like digital assets through their phone numbers.

Bitcoin Ultimatum Is Coming Out To Shake Crypto Industry
 

Related Articles

Tim Knight
Cryptocurrency: A Close Shave By Tim Knight - Sep 22, 2021 1

Just last Friday, I did a post called I Didn’t Ask For This, which explained why I was 100% out of crypto. Let’s just say that was a good call. I think they are far too...

Crypto Briefing
AMC Is Considering Dogecoin Alongside Other Cryptos By Crypto Briefing - Sep 22, 2021

The company will add cryptocurrency payments by the end of the year. Adam Aron, CEO of AMC Entertainment (NYSE:AMC), polled his Twitter audience yesterday on the possibility of...

Bitcoin Ultimatum Is Coming Out To Shake Crypto Industry

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Shaikh Ahmad
Shaikh Ahmad Feb 23, 2020 9:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We expected Coinsbit aim are great to future.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email