So maybe Bitcoin and the hundreds of other cryptocurrencies out there aren’t as sexy as they were last year, but if American venture capitalist Tim Draper can be trusted, Bitcoin is going to be worth more than $20,000 again. Actually, Draper has stuck his neck out a number of times on the future of BTC. He recently said it was going to $240,000 by 2022!
It’s not that every cryptocurrency goes up with Bitcoin. Some track it. Some don’t. But what if you could mine cryptocurrencies on your cell phone and home PC, participating in the cryptocurrency market, and get a reward for it – in crypto, of course.
Generating Bitcoins is called “mining” because, like mining gold, there is only a set number of Bitcoins that can ever be created—21 million, supposedly. There are plenty of other coins to mine.
Electroneum is an early entrant to this whole mine-coin-on-your-phone idea. They let users download an app to mine their coin. Startup Module and its Japanese team is the latest entrant, only they seek to compete not with Electroneum so much as they are gunning for Filecoin and Storj’s market. Module has started its public pre-sale with 7% bonuses. The Module Token is a utility coin, not a security, according to its white paper.
Module’s mining algorithm makes it possible to earn rewards by lending out space on multiple devices, be it a handheld or a desktop. “As the storage capacity of devices progresses and expands, one can expect the various services offered to expand too,” white paper authors wrote.
The Japanese based developers, led by Toshiki Tashiro, say they are building a system under which compensation is determined based on three elements of storage: proof of space, time and transaction.
In addition to issuing new original coins, users will also be able to develop decentralized applications on the platform, making it different than Electroneum and even Filecoin.
“Miners will support the blockchain by generating new blocks, and the opportunity for miners to earn rewards for exerting influence on the new blocks will be proportional to the storage space, time, and the number of transactions currently provided to the network,”
Richard Terrace, a blogger from the cryptocurrency site Steemit said he’s tried mining on his phone. “The trick is to pick the right cryptocoin,” he says.
Bitcoin Scrypt can be optimized for low memory, high-frequency calculations equating to hash rates in the billions. A cellphone could never keep up with that.
Ethash does well with the high number of stream processors in video cards and a cellphone is lucky to have more than four cores. So mining Ethereum is also out.
Cryptonight does well with a full-scale processor that can perform complex calculations. It does well with CPU’s and that is exactly what your cellphone has, he says.
“True the cellphone can’t keep up with a full power PC but then again, it uses very little electricity so it’s not a terrible comparison,” he says, mentioning other coins like Monero, which he calls “the king of the cryptonight coins” and Fantomcoin.
“It’s not much (money), but it is something,” Terrace adds.
Module proposes to be more than a meager miner. Like the handful of new companies that launched over the last three years, they are trying to take a chunk from the commercial cloud service providers’ market.
Here’s one why it works: a so-called Verifier pays the cost of storing the data with the Module token, and a so-called Farmer on the other end receives cryptocurrency as compensation for providing storage capacity to store the data. This means that the proof of space, time and transaction blockchain algorithm has a transaction function associated with the sending and receiving of coins.
Both parties get a smart contract related to the storage data so that the Verifier and the Farmer can safely perform data processing.
Module’s blockchain stores smart contracts related to transactions with coins and data management, making it a mini-miner and cloud storage solution in one.
Subscribe to AMBCrypto’s Newsletter