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A New Blockchain for Kik’s KIN Cryptocurrency

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Popular messaging app Kik entered the cryptocurrency market late last year with an ICO for their KIN token. They raised a total of $100M USD and established themselves as a major player in the social media cryptocurrency market. Although they originally started as an ERC-20 token, the Kin Foundation keeps their eye on developing trends. In the first quarter of 2018, they started the process of porting over to the Stellar XLM blockchain. Now, it seems that they’ve decided to hard fork that blockchain create an entirely new product.

The Kin Foundation remains closely partnered with Stellar and hopes that their development process can offer some value back to the original blockchain. However, creating a new blockchain is a time intensive and expensive process. There’s a good chance that the new Kin infrastructure will not be completed any time soon. Investors will have to be content with the ERC-20 token, which Kik intends to support going forward.

The History of the KIN Token

As with many recent ICOs and Token Generation Events, Kik started with a project on the ERC-20 standard. Ethereum’s flexibility and smart contract functionality allow for a tremendous scope of projects, but they depend on the Ethereum blockchain for their code base. The explosion in market capitalization at the end of 2017 showed some weaknesses in Ethereum’s scalability. Due to unprecedented transaction volume, Ethereum suffered slowdowns and high fees. Larger projects that can afford to do so now look to other blockchains to avoid these problems.

The solution for KIN, at the time, lay in the Stellar blockchain. XLM’s early adoption of the Lightning Network suggested that they would better deal with scalability issues moving forward. The Kin Foundation stated that KIN would be more at home in Stellar’s focused mindset. Ethereum’s broader approach to decentralized applications fit too loosely. Now, it seems KIN believes there is more room to expand and a custom blockchain will help that plan.

The Advantages of a Custom Blockchain

Ethereum standards offer a high degree of customization, but it’s nothing compared to a blockchain built from the ground up. While KIN intends to keep much of the Stellar code base in their hard fork, new options will become available to them. Stellar depends on a Byzantine Agreement System to validate their transactions, and switching to a custom version would reopen the algorithm for KIN. A Proof of Work or Proof of Stake system would grant them differing advantages and abilities.

Control over the code base itself would also allow KIN to apply updates more regularly – and more specifically. Placing themselves on the Stellar blockchain without hard forking would leave them more dependent on Stellar for pushing updates and upgrades. While in control of their own blockchain, Kin can evaluate the needs of their developers and change the code base appropriately.

The Final Evolution

While there is some danger in constantly shifting something as important as blockchain basis, KIN shows great flexibility in doing so. Their development team does not seem to have suffered from the moves and indeed moves forward with projects like the KIN Reward Engine SDK for Unity. The Kin Foundation’s desire to create a social currency community remains at the forefront of their development. So long as they continue to focus on expanding that community while providing a strong development platform, KIN will continue to do well.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Amayzun via Flickr

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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