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A New Blockchain for Kik’s KIN Cryptocurrency

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KIN
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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

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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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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