bitCNY project purpose and description
What Is BitCNY?
The launch of the first blockchain network in 2009 opened the globe to a new way of looking at financial transactions. By supporting a completely decentralized model of sending funds, Satoshi Nakamoto ushered the next generation of cryptocurrencies. However, the cryptographic community was fast to craft new types of digital assets. Welcome to smart coins.
Smart coins are cryptocurrencies are coins that are based on the fiat currencies.
One of the early smart coins to hit the market was BitCNY. It is one of the older cryptocurrencies launched in 2014 with the target of advancing the cryptocurrency’s adoption in the market.
- A closer look at BitCNY
BitCNY was created by Dan Larimer (founder of Bitshares and EOS) and Charles Hoskinson Charles (founder of Cardano). The coin is linked to the Chinese currency Yuan. This puts it in the same group with other coins based on real assets and fiat currencies such as the BitGold, BitUSD, and BitEUR.
At this point, it is important to note that Larimer has been associated with other coins linked to fiat currencies such as Steem Dollar and Gold Backed by Golos (GBG).
BitCNY is based on the Bitshares blockchain and its value follows that of the Yuan.
- The BitCNY price performance in the markets
The primary goal of creating BitCNY was to stabilize the cryptocurrencies in the market. This is reflected by the price performance of BitCNY in the exchanges. For the entire period that BitCNY has been in the market, the price has remained relatively stable.
When BitCNY entered the market in September 2014, the price was $0.169. The price remained within the same range and only changed slightly to $0.145 by early October 2018.
The only major deviation reported in the BitCNY’s price was in October 13th, 2015 when it rose to $0.261. However, the upward deviation did not last as the price dropped back to $0.15 in the subsequent week. In 2017, the price range of BitCNY was between $0.16 and $0.13.
The stability depicted by BitCNY implies that the digital asset is not a good option for people intending to buy for speculation. The focus was to create a reliable coin that people could easily associate with and use in their lives. Think of it this way; one BitCNY can be used to buy what one Yuan can buy.
What is the problem that BitCNY Solves?
The BitCNY cryptocurrency was created at a time when the blockchain niche was undergoing major threats such as cyber attacks and high volatility. Therefore, the BitCNY founders had to position the coin articulately to address some of the issues. Here are the problems that BitCNY solves.
- Poor scalability.
One of the characteristics of the blockchain networks is decentralization. This implies that they rely on a network of distributed nodes that help to secure the system. However, the decentralized nature of decentralized cryptocurrencies comes with one major problem; limited scalability.
If you take the example of Bitcoin, it is interesting that the largest and oldest network can only handle 7 transactions per second. Even the more advanced networks such as Ethereum and Bitcoin Cash can only handle 20 and 60 transactions/second respectively.
When these figures are compared to industry leaders like Visa, it implies that the blockchain niche has a long way to go. This is the gap that BitCNY sought to address.
- High volatility.
Cryptocurrencies are highly volatile. Their prices in the market can swing to either direction within a very short time.
These movements are driven by competition, new regulation, new technology, or even a positive view about a network by the industry leaders.
For example, if an industry leader indicates that he likes a specific coin, the statement can skyrocket the price of that coin to record high.
In January 2018, the price of OMG shot up by 2500% following Vitalik’s tweet that OMG was his favorite.
Towards the end of 2017, most cryptocurrencies experienced a sharp growth in prices before tumbling and taking a bearish trend in the first, second, and third quarters of 2018.
This volatility is not good for the industry because many people fear that their funds could easily lose value. This is why Larimer settled on a BitCNY smart coin based on the Chinese coin, Yuan.
- Poor adoption of the blockchain industry.
Though the blockchain technology has been advancing at a fast rate, the penetration into society has been poor. Even when a new startup releases new coins into the market, those who mop them out are strategic investors targeting to rake profit when the value grows.
This implies that it is still hard to get the local stores and groceries that are supporting digital coins. The BitCNY system sought to address the issue by making it easy for all to access and use.
- Centralization of financial services.
Though the blockchain industry is over ten years, the centralized services still dominate the market. A lot of people still prefer to use the banking system even though they are slower and more expensive compared to decentralized systems.
Even with the cryptocurrencies, the centralization still follows closely through the exchanges. Even though the BitCNY, Bitcoin, and Zcash coins among others are private, there is a risk of personal information getting to third parties when trading in the exchanges.
How Does BitCNY Solve The Problem?
When Larimer and Hoskinson decided to work on the BitCNY project, they were clear about the problems outlined above. As industry experts, they wanted to provide a new way that would demonstrate cryptocurrencies in a positive way and encourage more people to use it. Here are the methods used to address the problems.
- BitCNY operates as a smart coin
To help address the serious issue of price instability, BitCNY operates as a smart coin attached to the Chinese Yuan. This implies that the coin utilizes the Chinese administration strategies such as printing of more notes or buying them from the market to keep the Yuan stable. If you buy some BitCNY coins, you can rest without worrying they will lose value because of the market volatility.
- Use of a decentralized exchange
The cryptocurrency industry has been reeling from the reality that even with the decentralization that the industry sought for many years, the centralized exchanges could choke everything. Traders are required to open accounts and verify them with personal information that can be used to identify them. For example, Coinbase is now sharing the records of traders with IRS. To address the problem, BitCNY uses a decentralized exchange referred to as BitShares.
BitShares allows users to trade without joining a centralized exchange. The details of your wallet public address are ample to help facilitate the exchange of your BitCNY for other coins. The decentralized exchange model is being considered the next big thing in the industry.
- A completely decentralized network
The BitCNY system operates as a completely decentralized network controlled by nodes spread across the globe. This means that the platform does not belong to the founders or the development team. Rather, it is owned by the nodes that operate in its system.
Total decentralization implies that the platform does not have a single point of failure like the conventional financial services. The distributed model also helps to ensure that coins are not dominated by one party. This helps to pull down the risk of 51% attack.
What makes bitCNY better than it’s competitors?
Every cryptocurrency entering the market has to face the fast-growing list of digital assets that target the same audience. Today, there are more than 1600 cryptocurrencies that BitCNY has to compete with in the market. Here are some of the things that make BitCNY better than competitors.
- The BitCNY has provided a reliable solution to decentralized financial services. As a completely decentralized platform, BitCNY has helped users to address all the issues associated with centralization. This means that users can now join, buy coins and save money without worrying about losing funds or getting discovered by third parties.
- The BitCNY coins have been in the market for long and proved stable. Having been created in 2014, BitCNY has been in the market for long enough and its design proved to be stable. When new coins are released into the market, people are worried whether they are pump and dump systems or will fail after a short while. In the case of BitCNY, the platform has been tested and users can now join without worrying of losing their money.
- The platform is led by some of the best blockchain minds in the industry. Dan Larimer and Charles Hoskinson are some of the top minds that have helped to shape the blockchain niche for more than 8 years. Their association to BitCNY has helped to build trust from the community that expects new impressive features.
- It is a reliable platform for saving money without worrying that it will suffer from industry volatility. Many people have been shying away from using other blockchain networks such as Loopring and Stellar because their coins are highly volatile and can result in major losses. But BitCNY is a stable coin because it is tagged to the Chinese Yuan.
This means that buying BitCNY is the same as having the same amount in a bank. However, the BitCNY system is better because the platform is completely decentralized, private and free from third-party seizures.
- It is a reliable method of sending funds faster on a peer2peer basis. Because BitCNY platform operates as a completely decentralized system, they are cheaper and faster because there are no profit-seeking organizations involved.
How can BitCNY be categorized
BitCNY can be categorized as a completely decentralized and stable coin that is helping to redefine the blockchain niche. The platform has demonstrated that issues of scalability, stability, and centralized financial services can be solved without foregoing the original dream of blockchain technology founders.
The experience and commitment of the founders to progressively improve the blockchain niche have helped to shine a new ray of hope to the industry. Now, more people can join the industry and operate without worrying that their details will get discovered by third parties or value of invested money will devalue.
What’s BitCNY’S vision on Security?
To make BitCNY more attractive to individual and corporate users, the founders worked extra hard to strengthen the core code of the platform. Other methods used to help keep the BitCNY and its native network secure include;
- Advanced encryption that helps to keep users’ assets and transaction details private.
- Complete decentralization that helps to ensure even distribution of the BitCNY coins. This is important in preventing the risk of 51% attack.
- The BitCNY coins are also based on a very strong
Examples of BitCNY’S use cases / applications
The success of any cryptocurrency in the market can be gauged by looking at its application. In the case of BitCNY, the coin has been a success story with a lot of players going for it because of associated convenience. Here are some of these use cases.
- Use BitCNY to pay for transaction fee on its native network. When running transactions in the BitCNY platform, the fee is paid using the native coin, BitCNY. Note that the cost involved in transactions such as sending value is very small compared to what the banks charge for wire transfers.
- Pay for goods and services in the stores that accept it. As more stores start supporting cryptocurrencies, BitCNY is emerging as a better option because it is more stable compared to others such as ETH and XRP. More traders also prefer it because it is faster and clears payments faster compared to banks or credit cards.
- Use BitCNY to save your funds. The stability brought by the fact that BitCNY is tagged to Chinese Yuan implies that people can rely on the coin to save funds without worrying of high volatility.
- BitCNY is a reliable medium of sending value. The BitCNY is a reliable coin for sending value on a peer2peer basis across the globe. Because there is no centralized and profit-seeking organization involved, the transactions are fast, cheap, and reliable.