Have you ever wanted to invest in cryptocurrencies but stopped when confronted with selfies, documents, passports and complicated, slow processes? Maybe you’re tired of paying huge fees and having to go through your bank, worried you might get hacked.
Electroneum thought about this sort of problems when trying to bring the world of cryptocurrencies to the masses. So, let’s see if they made a good job and if it’s worth taking an interest in their project.
Electroneum’s ICO reached 40 million dollars and brought to it being launched on Github November 1st. However, before launching the app, they were the victim of a denial of service attack; this made them shut down for a few days. In spite of that, everything eventually went smoothly and investors got their funds: over 690 million ETN were sent out during the first 24 hours, with only 430 ETN in fees.
How Electroneum Works
ETN (Electroneum) is built off Monero’s codebase, in order to provide transactions on a decentralized blockchain. There is some built-in privacy features so to avoid publicly sharing your wallet address as it happens with Bitcoin. You’ll be given a stealth address that is used one time only and will actually send the funds to, or from, your real wallet, through a 3rd party auditing and prove that the transaction actually occurred.
Transactions are fast and fees based on the network traffic. Most of the time, we’re talking about less than 0.2 ETN in total fees. The codebase also tries to work through CPU miners rather than powerful ASICs one, in order to provide users with an easy access to ETN. The idea is that of democratizing the network.
There’s an app coming out soon for both Android and iOS, providing access to your digital wallet from which you can send and receive ETN. It is also possible to create offline paper wallets, and perhaps you should spread funds across several, so to avoid losing your money. By inviting friends to the app, you both enter a contest and might win 5000 ETN if you get lucky.
Simulated Mobile Mining
Everything’s still rather standard so far, so here’s the interesting part; the app allows your phone’s CPU to engage in simulated electroneum mining. It will not be very demanding on your phone, nor on your data. This is nor real mining, and you’re not confirming blocks on the blockchain. Still, you’re going to receive rewards. They’re trying to teach people about mining so that hopefully someone goes on to graduating to actual mining on his computer.
Electroneum is the self-defined first British based cryptocurrency. Based in Kent, with a team of 12 people, they’ve recently partnered with XIUS, a telecommunication payment company. The idea is that of offsetting the costs of owning a smartphone through Electroneum’s app. They’ve also partnered with Bmedia, a Japanese social media e-commerce company, and Fanfare, a video streaming service for fan-made footages of products they love.
Electroneum hopes to become the leading in-game currency, replacing perhaps World of Warcraft’s gold with ETN. This would drive gaming up by a great deal, as well as making money off fees for the gaming company whenever someone deposits or withdrawals. Gambling online through Bitcoin is a common thing nowadays, and ETN hopes to get a share of that too.
Mining has become a business for ASIC miners when it comes to Bitcoin, but the mining algorithm of ETN makes it very possible to just mine with your CPU. The average block reward is about 7000 ETN and is no way near as demanding as that of Bitcoin.
There’s now a circulating supply of about 6 billion ETN, with the goal of reaching the maximum supply of 21, through mining. The team initially reserved 4.4 billion for investors in the ICO. 20 million went to people sharing the ICO and translating relevant information, while the 12 people team also reserved 20 million for funding purposes.
The initial ICO electroneum price was 1 cent, but has accented to 7 cents per electroneum coin since then and even reached 10 at a certain point. It’s too early to comment, as mobile mining is still in beta testing, but we’ll see what happens once everything starts running officially.
So far, you can only buy ETN on Cryptopia, as it is not on any other platform yet.
Overall, it’s an interesting project that doesn’t require much of an initial investment, so it might be worth a short.