Blackcoin (BLK) was created in early 2014. It was the first cryptocurrency to operate using the Proof of Stake algorithm. In its early stages, it was very similar to the Bitcoin protocol but changed significantly in the past few years. It was also the first coin to have a fully functional smart contract client. Blackcoin is a peer-to-peer cryptocurrency. What this means is that the cryptocurrency allows the exchange of data and transaction between parties without the need for a central authority. Even though Blackcoin is not owned by any company or regulating organization, it was founded by a developer known under the name Rat4. Blackcoin originated as a fork of a digital currency called Novacoin. This cryptocurrency is the first example of a hybrid altcoin that went from using the Proof of Work algorithm to switching to the Proof of Stake one. This allows all coin holders to receive rewards in the form of dividents. Interested in buying or selling Blackcoin? Get started right now!
Table of Contents
- The History of Blackcoin
- The Technical Specifications of Blackcoin
- The Price of Blackcoin
- Unique Aspects of Blackcoin
- Why Use Blackcoin?
- Resources of Blackcoin
The Blackcoin cryptocurrency was founded during the first half of 2014. Even though the coin was almost identical to Bitcoin in its early stages, things have changed over time. The coin is now significantly different than it was originally designed. Shortly after the inception of Blackcoin, the team of developers changed their consensus algorithm to a Proof of Stake oriented coin. Unlike the Proof of Work consensus that requires work from users to ensure network security, the Proof of Stake algorithm aims to achieve distributed consensus among all the users of the coin.
From Hybrid to PoS
With this, Blackcoin was the first coin which went from PoW/PoS hybrid to full Proof of Stake. After the algorithm switch, it was no longer possible to mine Blackcoin. Instead, the developers have opted for the “Blackcoin pool” which has been designed to support the long term growth, profitability, and value of Blackcoin. This system encourages the community to mine other profitable altcoins, which are later used to buy Blackcoins.
How Blackcoins Are Staked
Since the platform operates on a Proof-of-Stake protocol, there is no need for power consuming mining hardware. The coins are staked on the basis of the wallet amount and the users do not have to spend time on mining blocks. Blackcoin was the first original coin with a dedicated smart contract client named Blackhalo. Blackhalo was initially going to function for a cryptocurrency called Bithalo but then entirely moved over to Blackcoin in 2014. The platform provides complete user anonymity. Transactions made in the Blackcoin wallet do not require personal information. Therefore, it is not only transparent but also offers privacy, which is a valued feature in the world of cryptocurrencies.
|Date of Release||24 February 2014|
|Consensus mechanism||Proof of Stake|
|Average Block Time||1 Minute|
|Mining / Staking reward||1.5 BLK|
|Average blocksize||750 bytes|
|Next Block Halving||n/a|
Blackcoin’s team members have a vision to create a coin utilizing technologies used in other cryptocurrencies, but improving upon them along the way. They have done this in various ways. The shift from PoW to PoS is a great example of their effort to improve the blockchain technology. This unique algorithm shift reduces energy consumption and improves transaction speeds, adding to the overall features of the coin.
Altcoins and Mining
With losing the ability to mine, Blackcoin diverted the computational power to mine other altcoins in order to keep money flowing towards it’s network. As there is no real development team behind this coin, the creators have relied very strongly on its very active community, which in turn strengthens their decentralization, as there is no governing force making choices. Blackcoin is on its path to innovate and push the boundaries in the cryptocurrency space.
Blackcoin offers functionality where many other cryptocurrencies have not succeeded yet. The main reasons to use Blackcoin include the fact that it is secure, energy efficient, and most importantly, decentralized. Unlike Bitcoin, it offers high security of your funds, combined with fast and cheap transactions. All of this is done without any regulating organization, which really connects with Blackcoin’s truly decentralized vision.
No Owners or ICOs
Blackcoin is not even owned by a company, there was no ICO and there was no premining. What this means is that there are no hidden funds somewhere that only the developers could tap into. This makes Blackcoin a community controlled coin. Other advantages of using Blackcoin include the fact that if you are staking the coins, you are earning Blackcoin for just running the program. Blackcoin also offers their Blackcoin Multipool. The Blackcoin Multipool consists of all the computational power of all Blackcoin users and uses this power to mine other altcoins. Proceeds earned with this will then be exchanged for more Blackcoin.