Types of Cryptocurrencies (BlackCoin)

Bobe Chego

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BlackCoin was created in order to prove the reliability of a pure proof-of-stake verification system.
It launched strong, with a polished sales pitch and integration into some real world point-of-sale systems.
However, growth has stalled in recent months.
BlackCoin is still only accepted by a handful of businesses worldwide, though those businesses cover areas as diverse as landscaping, shaving products and yoga classes.

The BlackCoin cryptocurrency relies on a proof-of-stake system in order to verify transactions.
What this means is that users stake coins from their wallets on the right to verify the next transaction.
Those who are able to stake the most coins win the right to verify the next transaction.
If the block of transactions they try to verify doesn't match what gets accepted by the system, those coins are lost, so there is an incentive to report the right results.
Proof-of-stake systems consume far less power than proof-of-work systems and also process transactions more quickly.
In addition, BlackCoin claims to have solved some of the security issues that come with proof-of-stake systems by requiring users to be online in order to participate in bidding,
thus making it harder for any one user to amass 51 percent of the bidding power and totally control verification.

Another advantage of BlackCoin is its vibrant community.
BlackCoin developers maintain an active presence on Twitter, Facebook, Reddit and IRC, where they answer user questions and issue frequent updates.
The developers also support a periodic BlackCoin Lottery and other community events.
The presence of such a community means that BlackCoin is likely meant to be a viable currency, rather than a short-term "pump-and-dump" currency.
BlackCoin's developers also offer a client called BlackHalo, which functions as a decentralized currency exchange, allowing conversion between practically any two currencies, as well as other features.

BlackCoin's main disadvantage is its low value.
A BlackCoin currently goes for just over one tenth of a cent, and the price has been dropping steadily since early 2014.
BlackCoin simply doesn't offer enough unique features and utility to make it a viable competitor in the saturated cryptocurrency market.
Proof of stake is also a less secure alternative to proof of work, despite the energy savings.
Though BlackCoin does seem to have a thriving user base, its value remains low.

A fully proof-of-stake cryptocurrency may offer unique advantages, but those advantages don't seem to be enough to stabilize BlackCoin's value.
Like many other cryptocurrencies which fail to adequately distinguish themselves, this one may be on its way out.
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