DEFINITION of Burstcoin
Designed to work on the concepts of high energy efficiency and green mining, Burstcoin operates on the basis of proof of capacity (POC) algorithm that uses a mining device’s available disk space instead of following energy intensive ASIC-, CPU- or GPU-based mining methodologies.
BREAKING DOWN Burstcoin
Operated by Burst-coin.org, Burstcoin is a digital cryptocurrency and payment system that is derived from the Nxt cryptocurrency. It supports smart contracts based on blockchain technology, offering the standard features of anonymity, decentralization, ahigh-security cryptography.
The cryptotokens, called Bursts, are fairly distributed. There was no initial coin offering (ICO), no pre-mine allocations to early adopters, and no airdrops for any promotions of the cryptocurrency during the launch. The Burstcoin blockchain operates with a block time of 4 minutes, the block reward size reduces at a fixed rate of 5 percent each month, and contains a limited token supply of 2,158,812,800 Burst crypto tokens. The network offers a dedicated digital wallet called Burst Wallet.
The other important features of the Burstcoin cryptocurrency include the Burst Asset Exchange, a peer-to-peer exchange that is integrated into the Burst Wallet and offers a seamless, rapid, secure, and decentralized exchange of various Burst assets. It allows for Burst assets to be used as a token of ownership for anything that has a value, which may include retirement funds, mining farms and pools, companies, and casino sites. It's a convenient way to make investments, gain dividend profits and or capital growth, and liquidity in trading such assets.
Burstcoin also supports smart contract, a procedural method usually governed and executed in an autonomous manner by a computer program, which facilitates, verifies, and enforces the terms, negotiations, and/or performance of the contract between the involved parties. Burstcoin also has a dedicated marketplace, which allows blockchain participants to list, buy, and sell anything and everything using Burstcoins without any marketplace commissions. The Burstcoin platform also allows for crowdfunding.
Burstcoin’s features include secure encrypted messaging. It can be used to communicate securely with other network participants, and the messages can be attached to the various transactions occurring on the network that facilitates description as well as simple book-keeping. POC works by storing a list of possible solutions on the mining device’s hard drive even before mining begins.
Burstcoin’s key proposition is its proof of capacity algorithm that allows it to remain energy efficient. Instead of using the computational power of the mining device that consumes a lot of electricity (like proof of work of bitcoin or proof of stake of peercoin), Burstcoin utilizes the available hard drive space to decide mining rights. (For more, see Proof of Capacity.)
Any regular hard drive, including those with Android-based systems, can be used for Burstcoin mining. Burstcoin mining is said to be 30-times more energy efficient than Bitcoin’s ASIC-based mining. Burstcoin also claims much lower power consumption - against the high power consumption of around 880 kWh observed in the transactions of the most popular Bitcoin cryptocurrency, each Burst transaction consumes only a miniscule amount of 0.2 kWh of electricity.
Burstcoin is available for trading on popular exchanges that include Poloniex, Bittrex, and C-CEX.