FairCoin project purpose and description
What Is FairCoin?
FairCoin is a decentralized and open-source cryptocurrency created in 2014 for use in the Faircoop ecosystem.
It was created with unique features for facilitating saving money at low ecological cost.
Unlike other cryptocurrencies such as Bitcoin that use proof of work (PoW) algorithm or Dash that employ proof of stake (PoS) consensus model, FairCoin uses proof of cooperation (PoC).
The cryptocurrency departs from the common mining and minting models used to release new coins in other crypto platforms. Instead, it uses certified nodes through the new PoC protocol.
- FairCoin was founded by FairCoop
FairCoop is the Earth Cooperative started in 2014 and designed for a fair economy through the development of tools and knowledge transfer features.
It is a global cooperative that runs its operations online outside the control of administrative boundaries. Its target is to run an alternative global system that is based on ethics, solidarity and cooperation and even redistribution of wealth and justice in the globe.
The main people who were involved in the FairCoion and FairCoop platform’s development included Michael Bauwens of the Peer2peer Foundation, Enric Duran of Catalan Integral Cooperative and Amir Taaki (a Bitcoin developer).
- The FairCoin price
The price of FairCoin started at $0.0029 in March 2014 and traded within the same range until April 2015. In May 2015, the price rose with about 4000% to hit $0.088.
In the subsequent two months, the price fell to $0.012 and remained within the range of $0.04 until May 2017 when it started rising again.
In late November 2017, the price of FairCoin broke the $1 mark. Then, it grew significantly to reach $1.17 in mid-January 2018; the highest mark in its history. Despite this huge growth, the price did not remain at the top mark for long. It started a downward trend that saw the price drop by about 1000% to $0.1.
Though the price rose marginally to $0.5 in July 2018, it went further down and stabilized at the range of $0.1 and $0.25 in the third quarter of 2018. The community has indicated it is optimistic that the price will continue growing to deliver a higher return on investment (ROI) in the coming years.
What is the problem that FairCoin solves?
Since 2009 when Satoshi Nakamoto released the Bitcoin core code, newer platforms have emerged to help advance the blockchain niche to the next level. The new platforms target to address the shortcomings of preceding coins and even the problems in the society. Here are the main problems that FairCoin seeks to address.
- High energy costs associated with mining
Mining is the main method used to release new coins in crypto networks. The common method used for mining cryptocurrencies is the proof of work (PoW) though proof of stake (PoS) is also gaining ground. As the name suggests, proof of work (PoW) requires users to do a lot of work to solve complex puzzles to confirm transactions and confirm new blocks for a reward in the native coin.
However, this method consumes a lot of energy which makes it harmful to the environment. Here is a demonstration using the case of Bitcoin.
Digicoinomist, a cryptocurrency trucker points that the network of computers used to verify Bitcoin was drawing 3.4 Gigawatts every second in December 2017. When this is compounded to annual consumption, it implies that more than 30.1 Terawatt hours are consumed every year to mine Bitcoin.
While this value is breathtaking, think about the combined power used to mine all PoW cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin among others. The FairCoin’s development group wanted to see the blockchain technology advancing without endangering the environment.
- Centralized mining
When Bitcoin was unveiled, it was possible to mine with a standard desktop or laptop. However, advancing mining technology has made it impossible to mine many cryptocurrencies with standard computing equipment. For example, it is no longer viable to mine Bitcoin without advanced mining equipment such as the Antminer S9. However, the advanced mining equipment is expensive and, therefore, out of reach for the standard people.
The impact of the high cost of mining equipment and power requirements implies that only the well to do in the society can afford. This centralization is going against the tenets of decentralized operations. Besides, it also raises the danger of 51% attack in many networks.
- Slow adoption of cryptocurrencies by the society
Though the blockchain niche has advanced at a very fast rate, the adoption by the mainstream community has been relatively slow. Many people investing in cryptocurrencies are largely interested in reaping from price growth as opposed to direct applications such as buying services in the stores.
One of the main reasons standing on the way of faster cryptocurrency adoption is the complexity of understanding the blockchain technology. Many people still find it very difficult to comprehend the mechanics of the blockchain technology outside the standard fiscal brackets such as banks and money sending services.
The process of owning, retrieving and using cryptocurrencies is complex. For example, owning digital coins requires one to join a cryptocurrency exchange such as Binance, Bittrex or CEX.IO, registering for an account and placing orders. Besides, you will also need to have a digital wallet and learn how to store the tokens safely.
FairCoop wants to make it easy for any person no matter the social status or location on the globe, to be able to acquire and use FairCoin.
How does FairCoin solve the problem?
To help advance the blockchain niche, the FairCoin network uses three things; the certified nodes, the proof of cooperation consensus algorithm, and distributed sub-chains.
Use of certified validated nodes (CVN)
Certified validated nodes (CVNs) are the trusted nodes used to verify transactions and add new transactions in the FairCoin network. The nodes create new blocks every 3 minutes. To operate as a CVN, the node is required to be connected on a 24/7 basis, and the TCP port 40404 should be reachable online. Other requirements to run as a node include;
- The node’s computers must also have a public NTP server for easy synchronization.
- The user’s wallet software must be configured in line with the certification data issued by FairCoop.
- The user should have a smart card and a reader provided by the FairCoin development team.
Note that any person who joins the FairCoin network can qualify to become a certified node by meeting the outlined requirements. To add or remove a certified node, a small number of chain administrators are required to sign a corresponding command that is injected into the network through the wallets RPC interface.
Though the development team has indicated that the system of nodes is completely decentralized, concerns have been raised about the centralized administrators who must sign commands to change the certified nodes. In other networks using PoW, the node with the highest mining power confirms the network.
Proof of Cooperation (PoC)
This is the main strategy used to address the problems that FairCoin targets to address. PoC is a consensus algorithm used to maintain the integrity of the network. Note that the platform utilized a combination of proof of stake (PoS) and proof of work (PoW) since inception until July 2017 when it shifted to PoC consensus algorithm.
Unlike in many blockchain networks such as Bitcoin and Litecoin where all the nodes have access to the info for validating transactions, FairCoin PoC system only uses a limited number of certified validated nodes (CVN). The CVNs do the following tasks:
- Examining the past blocks to establish the CVN that should mine the next block and publish its content.
- Verifying validity of the previous block, its data (transactions) and confirming if the selected node is the right one to create the next block.
- The CVN selected to create the next block collects all the signatures from participating certified nodes on a consensus about the new block. The report on consensus is stored together with the new block.
This new algorithm ensures that transactions are completed faster and the associated cost is very low. Note that any person who becomes a certified validated node does not need to have special mining equipment like the way it happens with PoW at Bitcoin.
The FairCoin platform allows everybody to easily create a separate chain that hooks in the FairCoin’s main chain. This implies that you can run a parallel new chain. The focus is on ensuring that more businesses and people can easily join the blockchain industry and reap its associated benefits.
According to the FairCoin’s whitepaper, a number of certified nodes are allowed to take part in several chains. A plug-in architecture provides a method to design chains using new properties. For example, a new chain is allowed to implement a local currency based on a local network of nodes of the same city based on similar principles.
What makes FairCoin better than it’s competitors?
From the beginning, the FairCoin design was meant to provide the advantages that other networks had failed to deliver to the community. Here are the main things that make FairCoin better than its competitors.
- The coin is ecologically sustainable
Unlike other cryptocurrencies that make people have very high power bills, people in FoirCoin system do not have to worry about high energy consumption. The system adopts a low power consumption model that facilitates smooth and fast transactions.
- It Is Safe And Secure
Unlike the other platforms where the developers worry about the security of their clients’ information and transactions, all blocks at FairCoin system are generated cooperatively. The cooperation ensures that the network is secure.
- The FairCoin system is very fast
FairCoin is created to facilitate the transfer of value between clients on a peer-to-peer basis. The decentralized nature of the network ensures that transactions are faster compared to the conventional banking systems. Even the integrated services that allow people on its network to use services such as prepaid cards are also very fast. They clear in less than three minutes.
- The FairCoin system is transparent and ethical
FairCoin system was created and is operated on the principle of supporting fair business values. For example, the system does not force its clients to upgrade to other software when minor changes are made.
- The FairCoin’s system allows more people to mine with standard devices
Unlike some of the common blockchain networks such as Bitcoin that require people only to have very advanced mining equipment, FairCoin allows people to use standard devices such as CPU.
§ FairCoin future is very bright.
The platform has built a strong community with regular meetings via online collaboration. The attachment is expected to help grow the network in both the medium and long terms.
How can FairCoin be categorized?
FairCoin is an eco-friendly cryptocurrency created to help advance the blockchain technology by demonstrating that everybody can be involved without causing adverse effects to the environment. The adoption of the new consensus algorithm, proof of cooperation (PoC) has helped people to deviate from other mining technologies that require expensive mining equipment that consume a lot of energy.
What’s Faircoin’s vision of security?
FairCoin’s mission on security is to become the most eco-friendly and secure blockchain network on the globe. The development team believes that economic and social justice can help to make everybody feel part and contribute to securing the current technological and economic systems. Some of the methods used to secure the network include:
- Allowing anyone on the network to become a certified validated node (CVN) for an even distribution of coins. This helps to prevent the network from 51% attack.
- In their white paper, the development team indicated that the FairCoin system stores the private keys for signing new blocks on smart cards. The cards are secured by a six digit pin that is only known to the certified validated node (CVN).
If the node puts the keys wrongly more than three times, it is blocked and can no longer be used. A new one has to be issued.
Examples of FairCoin’s use cases/ applications.
- FairCoin allows users to link with conventional payment services. The FairCoin system has integrated a collective intelligence model that makes it possible for users to share point of sale systems, prepaid cards, and even pay for direct receipts. This is a breakthrough that will help the network to become more applicable.
- FairCoin, like other cryptocurrencies such as Ripple, can be used as a means of sending value on a peer-to-peer basis across the globe. This is considered better than the standard banking services because transactions are fast and cheap.
- FairCoin can be used to pay for transaction charges at the network or when trading it in the exchanges.
- As more people join the network because of its strict focus on ethical values, the expectation is that FairCoin value will grow steadily over time. Therefore, some people are using it as a form of speculative investment.