Chainalysis – a commonly used blockchain data company – recently invested in an unspecified amount of Bitcoin. The investment comes as Bitcoin's price creeps ever closer to all-time highs and surpasses its market cap record from May. Chainalysis Plans to HODL The data provider announced its latest investment in a blog post today and simultaneously confirmed a new partnership with NYDIG. NYDIG is a Fintech service provider for banks, corporations, and institutions. The financial company has allowed Chainalysis to add…
Launched in 2009, Bitcoin as a currency and the Bitcoin Network has performed vastly well in the crypto industry. The coin set up the pace for the launch of thousands of other crypto coins providing similar services.
The idea behind Bitcoins and crypto launch was to decentralize the entire financial world. However, to decentralize the services, the network had to involve the users in a lot of mining work. Mining in Bitcoin has always followed the Proof of work system, where the miner has to solve a complex algorithm to mine the coins successfully.
While many people argue that Bitcoin’s Proof of work system is inefficient in many ways, including leading to environmental degradation and lacking scale, some new alternative systems like Proof of Stake emerged. The most famous example is Ethereum switching to the Proof of Stake system; however, there are already thousands of PoS coins, including Bitcoin forks.
Among these, Bitcoin Latinum, is also launching soon trying to solve most problems clouding the Bitcoin network. What exactly is Bitcoin Latinum?
What is Bitcoin Latinum?
Bitcoin Latinum describes itself as a new hard fork for the Bitcoin network, focused on following the principles laid out by Satoshi Nakamoto. Generally, this network aims to be a bankless P2P network, improving on the original idea of Bitcoin but implanting speed and green energy efficiency in the process.
According to their white paper, in their mission, they plan to enhance the Bitcoin code. Unlike the original Bitcoin version, which has for the whole decade used POW systems, Bitcoin Latinum aims to use another consensus mechanism. The top features aimed to be achieved by Bitcoin Latinum include speed, lower costs, efficiency, and save the environment.
Bitcoin Latinum Leveraging Proof of Stake
The Bitcoin Latinum network is leveraging the Proof of Stake consensus mechanisms to release the new tokens. How does PoS work?
PoS is a consensus mechanism concept that was introduced in mid-2012 by a crypto asset dubbed peercoin. The idea was later adopted by other crypto-assets and has proven to be a very successful mining method. Why?
Unlike Proof of work which depends on showing the real work done to mine, Proof of stake depends on the value of investment a miner (staker) has. A staker with higher value investments gets the chance of earning greater rewards.
Usually, in Proof of stake, miners deal with verification and validation of transactions, and the person with the higher stake gets a better chance of getting rewards. The Bitcoin Latinum network will work on principles very similar to Proof of stake, where the stakers will get rewards for their stake. Why exactly is Proof of stake a good move for Bitcoin Latinum?
Green, Energy Efficient Mining
Bitcoin Latinums use of PoS works well with its mission for a green energy-efficient consensus mechanism. Generally, Proof of work systems have proven highly inefficient for other coins besides Bitcoin, especially when it comes to energy use and environmental degradation. Exactly how?
Proof of work, as already mentioned earlier, consumes too much electricity. To mine cryptocurrency, they involve a long process of solving very complex mathematical problems. These require the use of very strong machine/ hardware devices that often consume too much electricity.
For instance, the mining rigs instituted by groups occupy large rooms and require lots of electricity to complete mining a fraction of Bitcoin. According to some research, Bitcoin mining costs electricity almost enough to serve Finland annually, equal to 23 coal-fired electricity plants.
However, by leveraging Proof of stake, the challenge of excessive consumption of electricity is solved. Some suggest that PoS reduced the energy inefficiency of PoW by about 99%. Using PoS, therefore, means that the network will require very little electricity, thus helping in the conservation of the environment with fewer power plants.
In PoS, even with simple machines, a user can be able to participate in validation.
Increase Transaction Speed and Efficiency
Bitcoin Latinum also launched with a new feature: speed and efficiency of transactions. Bitcoin, the largest crypto network today, completes its transactions at a languid pace. Statistics show that Bitcoin completes merely 5-7 transactions per second. The second-largest crypto by market cap, Ethereum, also has a low TPS of about 5. When considering the vastness of the networks, the TPS is very low; it translates to just about 600k transactions per day.
However, according to Bitcoin Latinum’s whitepaper, the platform aims to ensure high transaction speed. The network has improved the speed by reducing transaction size by leveraging the PoS and increasing the volume of transactions.
This network can host millions of transactions every day; thus, the coin and the network at large will be perfect for retail users of the coin. Bitcoin Latinum will also use another way to speed up transactions, i.e., institute large block sizes. By increasing the block size, they’ll speed up transactions and effectively reduce the costs.
Other Benefits of Bitcoin Latinum Platform PoS
As already mentioned, the bitcoin Latinum Network is on a mission to become the best peer-to-peer coin, paralleling Bitcoin. However, since it improves the speed and efficiency, there will be several benefits associated with the forks improvements;
- Reduced cost of transactions since with larger block sizes, the price per individual transaction will be relatively lower
- Lower costs involved in purchasing heavy machinery; instead, only by using your phone you can benefit
- Speed and reliability of transactions
- Higher security from 51% attacks
- The launch of the token targets markets of telecommunication, gaming, media, and cloud computing.
By leveraging PoS, Bitcoin Latinum will provide highly efficient services at fast and friendly costs. The platform will ensure there is very little to no effect of their process on the environment, thus the green energy initiative.
Since the token sale is ongoing, you can purchase them on their webpage using Bank transfers, Coinbase, Coinpayment, PayPal, and Manual crypto.
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