Vertcoin
Vertcoin (VTC) is a Bitcoin-like blockchain currency with additional features such as Stealth Address technology and ASIC resistant Proof-of-work (PoW) function. The main difference between Bitcoin and Vertcoin is the latter’s resistance to centralized mining and the long term promise of Vertcoin developers to keep it that way. Vertcoin has already forked two times to a new PoW function because of a veritable threat of centralized mining. The Vertcoin cryptocurrency wallet can be downloaded from Vertcoin’s official website[1].
Contents
Vertcoin Review
Vertcoin is an alternative version of Bitcoin using Lyra2REv2 as a proof-of-work algorithm. Payments in the Vertcoin network are made to addresses, which are based on digital signatures. They are strings of 33 numbers and letters which always begin with the letter V.
Vertcoin introduced what is known as “Adaptive N‐Factor” to the Scrypt algorithm. The N‐factor component of Scrypt determines how much memory is required to compute the hashing functions. Vertcoin’s N‐factor increases with time to discourage the development of dedicated ‘mining’ hardware and encourage the distribution of the verification task across individual users’ PCs[2].
As a countermeasure to emerging Scrypt-Adaptive-N capable ASICs in late 2014, Vertcoin introduced a novel proof-of-work function called Lyra2RE, a NIST5 based chained algorithm with customizable parameters. The original Lyra2RE consisted of a chain of BLAKE, Keccak, Lyra2, and Grøstl hash functions. In 2015, the algorithm was modified by Vertcoin developers to favor GPU miners because of a single (assumingly CPU based) botnet controlling a majority of the network’s hash power. The current version (Lyra2REv2) of the algorithm consists of the following hash functions: BLAKE, Keccak, CubeHash, Lyra2,
Discouraging centralization of the verification task avoids a single entity exercising control over the blockchain ledger, otherwise known as a “51% attack.”
History
Vertcoin was released via a client on GitHub on January 8, 2014.
On July 1, 2014, Vertcoin released a wallet supporting Stealth Address transactions.
On December 13, 2014 (block 208301), Vertcoin forked from Scrypt-Adaptive-N proof-of-work function to Lyra2RE as a proactive defense against emerging Scrypt-Adaptive-N capable ASICs.
On August 10, 2015 (block 347000), Vertcoin forked from Lyra2RE to Lyra2REv2 because a botnet was controlling more than 50% of the hashing power of Vertcoin network.
On May 7, 2017, Segregated Witness (SegWit) feature was activated in the main network. SegWit update includes the Lightning Network technology that was also demonstrated in action during the same day. [3]
On December 12, 2017 (block 840,000) Vertcoin prize per block was cut in half (50 to 25 Vertcoins).
Vertcoin and Lightning Network
Vertcoin is at the forefront of Lightning Network development, currently developing the first known multicoin lightning network wallet.
The lightning wallet will run on LIT, one of the 4 currently existing implementations of Lightning Network. Outside lightning channel management LIT will act like TCP/IP layer for cryptocurrency joining all your addresses under a single address umbrella unlike existing implementations. This means you’ll have one address for sending/receiving that doesn’t reveal your on-chain addresses.
LIT is also multicoin lightning protocol meaning that multicoin support is built directly in, natively supporting SegWit coins by default. Other implementations require forks of Lightning which inevitably result in downstream bugs never getting fixed, similar to Electrum. LIT is also the only protocol that doesn’t require full nodes, which makes multicoin solutions like LitBox not only possible but very affordable.
Due to coin support being directly implemented into the protocol, LIT will be able to achieve the multicoin lightning ecosystem operability much faster and smoother than any other implementation[4].
Vertcoin Exchanges
The exchange maintains custody of your coins whilst they are being used on the exchange. Exchanges have by far the most liquidity and the best rates. However, all exchanges will require accounts and some level of personal verification before you are allowed to trade.
People can buy Vertcoin on the exchanges, such as Bittrex, Poloniex, UpBit, YoBit and etc. Unfortunately, Binance does not support Vertcoin (VTC).
Vertcoin Price (VTC)
There is live Vertcoin price from COIN360 widget:
Vertcoin Wallets
The Vertcoin Development team provides two different wallets that users can store their Vertcoin on. Third parties provide both mobile and hardware wallets. There is also the option to store your Vertcoins without electronics using a paper wallet.
Vertcoin Core
This is the Vertcoin reference client (forked from upstream Bitcoin Core and forms the backbone of the Vertcoin Network. Vertcoin Core is a trustless wallet meaning that you download and verify the entire blockchain history for yourself. Additionally, you help to redistribute the blockchain to new users, ferry transactions around the network and help prevent eclipse attacks. If you intend to mine Vertcoin, the Core wallet is a requirement. Their new Lightning Network Wallet will also include these features as well.
Electrum-VTC
Electrum-VTC is a lightweight wallet forked from upstream Electrum which does not require you to download the full blockchain. The trade-off being that you are trusting the miners that they have correctly verified the transactions in the blockchain. Whilst this means there is no synchronization time, you are no longer working trustlessly and not helping to redistribute the Vertcoin blockchain to new users. Users should not mine into Electrum-VTC due to the load caused by many small payments that is put on the Electrum servers. Users should use Vertcoin Core for mining instead.
Vertcoin mining
Cryptocurrencies have the ability to merge mine with another cryptocurrency, meaning a miner is able to mine for more than one blockchain at the same time. The benefit is that every “hash” that a miner submits contributes to the total hash rate of both currencies, and as a result, they both become more secure[5].
There is at least one active cryptocurrency, MobileCash, that is currently merge mineable with Vertcoin.
See Also on BitcoinWiki
- Anonymous Internet banking
- Decentralized autonomous organization
- Digital gold currency
- Electronic money
- Private currency
- Proof-of-work system