What Is Burstcoin?

Designed to be highly energy-efficient and a model for green mining, Burstcoin (BURST) operates on the basis of a 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.

Key Takeaways

  • Burstcoin is a multifunctional platform on the blockchain that uses a proof of space system for mining.
  • Proof of space is a less energy-intensive method of mining cryptocurrencies, and as such is considered to be more environmentally friendly.
  • Burstcoin is available for trading on exchanges that include Bittrex, Upbit, and Eterbase. It suffered a significant price decline after it was delisted from Poloniex.

How Burstcoin Works

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, and high-security cryptography.

The crypto-coins, called Bursts, are fairly distributed. There was no initial coin offering (ICO), no premine allocations to early adopters, and no airdrops for any promotions of the cryptocurrency during the launch.

Proof of Capacity

BURST is mined through the proof of capacity (PoC) or proof of space process. Whereas proof of work mining requires a lot of computing power, the PoC method allows the computing to be performed beforehand and all the answers stored on a hard drive.

For each new block in the blockchain, the miner has less than five minutes to read through the solved equations or "plots" on their hard drive and return the correct answer. The first correct answer wins the block and is rewarded with transaction fees and the Burstcoin block reward. The computational resources for mining Burstcoin are limited to the time it takes the miner to read the plot files stored on mass storage.

The Burstcoin blockchain operates with a block time of four minutes. The block reward size reduces at a fixed rate of 5% 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.

Other Important Burstcoin Features

The other important Burstcoin features 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.

Burst Asset Exchange 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 ensure liquidity in trading such assets.

Burstcoin also supports crowdfunding, smart contracts, and a dedicated marketplace that allows blockchain participants to list, buy, and sell anything and everything using Burstcoins without any marketplace commissions.

Burstcoin’s features include secure encrypted messaging. This 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 bookkeeping.

Burstcoin is available for trading on exchanges that include Bittrex, Upbit, and Eterbase. Burstcoin suffered a significant price decline after it was delisted from Poloniex.