NEM on the way to recovery – What is behind it?

Compared to other crypto currencies, NEM was able to increase its value last week. This can be seen as a recovery of the crypto currency, which struggled with the consequences of the coincheck hack throughout February. In the meantime, the price has consolidated strongly again.

NEM was the only one of the 200 most valuable crypto currencies in terms of market capitalization to make a high last week. The market capitalization of the platform rose from 2.6 billion US dollars to 3.7 billion US dollars in the meantime. This corresponds to an increase of over 44% within seven days. On March 14, NEM fell sharply together with other crypto currencies. Nevertheless, the question arises as to what led to a temporary price increase of over 60 %. As the development since March 14th showed, NEM could not hold its own against the generally bearish mood on the market and had to accept significant price losses accordingly.

Coincheck can pay the Bitcoin evolution

The reason for the extraordinary increase was probably a recovery after the hacker attacks on Coincheck: In January, unknowns carried out one of the largest attacks on a Bitcoin evolution crypto market to date. The Japanese trading platform lost a credit of 430 million euros. Around 260,000 customers were affected. The only crypto currency that was stolen: XEM. 523 million units have changed hands. This corresponds to almost 6% of the total tradable volume, which is almost nine billion.

When it was discovered that a security breach at Coincheck made hacking possible, Japanese regulators put pressure on the trading platform to increase its security measures. To ensure that this does not happen again, 16 trading platforms in Japan formed a self-regulatory community. However, these efforts were not enough for the Japanese regulators. The regulator has therefore closed two exchanges for a month and imposed five further conditions.

A few days ago, Coincheck announced its intention to refund 80% of the lost money to the affected customers. On their website they apologize for the illegal transfers and promise fundamental optimizations. New registrations and various other features are currently still blocked. These measures have obviously reversed the loss of confidence in trading with NEM.

What is behind NEM/XEM?

In Barcelona we met Albert Castellana from the NEM Foundation as part of the Bitcoin and Blockchain in Europe series. NEM is a platform that allows customers to create their own blockchains and crypto currencies, among other things. The various applications that are possible are the creation of financial instruments, supply chains, smart contracts and smart assets. The special thing about the corresponding currency unit XEM is that they work neither with Proof of Work, nor with Proof of Stake, but with Proof of Importance. Blocks are not mined with a lot of computing and energy, but harvested. This is done by automatically selected users, who are characterized by a lot of activity in the network. You can learn more about NEM/XEM in our tutorial.

Structure of the blockchain

Most people who deal with Bitcoin will have noticed that the real genius of Satoshi Nakamoto’s invention lies not in the coins but in the blockchain.

The term „Bitcoin 2.0“ is often used to describe applications based on blockchain technology that deal with issues such as „intelligent contracts“ and „identity verification“ that were previously impossible in a decentralized way on the Internet.

There’s a reason people call the Bitcoin evolution the „honey roof of money“

Jeff Garzik, one of the Bitcoin protocol developers, described the significance of the blockchain away from digital currencies as follows:

„As a computer scientist and in the computer science scene in general, there is a purely theoretical view of how computers communicate with each other and how to coordinate them. Satoshi and the Bitcoin evolution Blockchain have solved this problem elegantly and unexpectedly“.

Companies focused on the blockchain such as BlockScore and BlockCyber have already been able to secure investments this year and there will certainly continue to be applications that make use of the blockchain to solve problems in a decentralized way in the future.

New focus on Bitcoin evolution

The collapse of Mt Gox, once the largest Bitcoin exchange, was a wake-up call for many in the Bitcoin evolution community.

The attitude of former CEO Mark Karpeles was notorious and opaque months before the collapse and caused confusion among many users of the exchange. Ultimately, many people lost large sums of money to Bitcoin as the stock market collapsed. The outcry from the Bitcoin community was great and the other major exchanges were urged to prove their solvency by professional auditors. Stock exchanges such as Bitstamp, Kraken and Coinbase agreed to an audit.

However, the demand for more transparency will not be satisfied by audits of the exchanges. The self-confessed Bitcoin evangelist Andreas Antonopoulus announced in a tweet that his departure from the Bitcoin Foundation was mainly due to insufficient transparency.

Even though the first half of 2014 cannot say exactly where the journey is going, it has proven that the technology can survive under catastrophic conditions (Mt.Gox) and that the community is pulling together to make the Bitcoin suitable for mass production and distribution.

Ravencoin: Bitcoin Fork rises over 270 percent

The Bitcoin Fork Ravencoin has grown by over 200 percent in the last seven days. One of many Shitcoins or the next big thing? Time to look under the wings of the „raven coin“.

Ravencoin, a fork from Bitcoin, is a relatively young token; it’s only since 3 January 2018 that it’s been romping around among the crypto currencies. But in the last seven days, the coin has attracted attention by rising by a good 220 percent, in the course of the month even more than 270 percent. The name, freely translated as raven coin, is borrowed from the fictitious world of Game of Thrones. This is how you read on the homepage:

Ravencoin – the new Bitcoin?

„In the fictional world of Westeros, ravens are used as messengers that convey true statements. Ravencoin is a use-case-specific blockchain that is supposed to deliver true statements about who owns which assets.“

To achieve this, the Ravencoin blockchain is designed to serve specific purposes. On the one hand, it should help to determine ownership of assets in a flawless manner. On the other hand, Ravencoin, similar to Bitcoin, wants to make direct payments possible. As the open source project on the homepage emphasizes, it is completely decentralized: Neither master nodes nor especially no ICO are behind the project.

Ravencoin changes Bitcoin protocol

The community has changed the Bitcoin protocol in four main aspects:

Block Reward of 5.000 RVN
Block size (1 minute)
Amount of available coins (21 billion)
Mining algorithm (X16R)
With the modified mining algorithm X16R, the team wants to counteract the increasing centralization of mining by ASIC miners. As you can see from the X16R white paper, X16R is based on the same algorithms as X15 and SHA512, but in a different order. ASIC miners can’t prevent this, but it makes CPU and GPU mining more likely.

Furthermore, the entire mining process is based on Bitcoin – instead of pre-mining as with many ICOs, there is a Genesis block, which exists from the start, after which theoretically anyone can mine the Ravencoin.

There is also a halving at Ravencoin – this takes place every 2,100,000 blocks – the reward is then halved from 5,000 to 2,500 Ravencoins, this is supposed to happen for the first time in about four years.

If you want to get started, you can create a paper wallet here and look around for mining pools here.

Currently, the project is in Phase 2. After a successful start, the Ravencoin community is in the process of implementing ways to transfer assets and ownership rights. In later phases, Ravencoin also plans to make messaging and elections possible. The entire roadmap can be found in the Github account.

At Ravencoin, talking about the new Bitcoin is certainly still too early. Nevertheless, the project is more than just one of the many shitcoins that catch attention and then disappear again. All in all, Ravencoin is a project that convinces above all through its decentralisation and its strong orientation towards Bitcoin. Neither is there a team/ICO behind the project, nor has centralisation of the mining been possible so far, as is currently the case at Bitcoin, which leads to unrest time and again.

At the moment, the price for a Ravencoin is just under 0.06 US dollars. Within the last 24 hours it could increase by 55 percent, in the course of 7 days almost 200 percent. Within the last month the Bitcoin Fork could rise by a full 275 percent and is currently performing best.