Crypto Academy Season Two Week 8[Privacy Coin]: Homework Post for @levycore
Greetings,
This week professor @levycore has delivered his lecture on privacy coin,
a topic I deem to be important in the world of cryptocurrency.
After going through his lecture I will now look at completing my homework task.
Introduction
Privacy is when an individual is free from worry from other individuals.
Privacy to individuals is deemed as very important because when someone is assured that what ever he is doing is kept private or is only known by him he feels safe.
And being safe helps us to focus on more important issues and we can attend to our daily lives without having to worry what will happen in the next minute or future.
We all know that privacy in the cryptocurrency world is something that some people might see as unachievable because of the kind of decentralized system we are running with the cryptocurrencies where a transaction made can be traced back to the owner of that transaction.
Some traders do not find this information disturbing as they want the crypto market to be transparent.
Other traders who involve in the crypto trade will want their personal trade known to only them.
For instance, when bitcoin first emerged and people got involved with it and started trading in it; traders and holders did not know that a transaction made with btc could be traced back to the users.
This brought about other altcoins looking to provide the security that traders who needed privacy where looking for.
This brought about the occurrence of privacy coin.
The privacy coin looks to solve most of the problems associated with btc.
Privacy coins are cryptocurrencies that look to hide the origin of a transaction made with a cryptocurrency.
it also looks to avoid the address of a user's wallet from being traced.
It does this by putting together and then combining a whole range of transactions to dodge analysis of the blockchain.
Examples of some privacy coins are Beam, Horizen, Verge, Dash, Zcash.
Choose a Privacy Coin and perform a fundamental analysis of the coin in detail.
Beam
Beam is a cryptocurrency token that was launched in the year 2018 in the month of March.
This token's main aim is security.
The team involved
Alexander Zaidelson(CEO)
Alex Romanov(CTO)
Amir Aaronson(COO)
The token uses the proof of work algorithm to handle and store data.
It also makes use of C++
This cryptocurrency actually runs on the Mimblewimble protocol and it is a DeFI platform(Confidential decentralized finance platform).
The beam cryptocurrency was created because users of btc started to realize that transactions made with btc was traceable back to the users.
So beam was created to hide addresses, make identity of users anonimous and also the hide the balances in the user's wallets.
User addresses on beam is not accessible by third parties as the user has the full authority to decide who has access to his information and also who can access what.
This will have made more users feel more safe and then privacy will then be assured.
Price statistics of BEAM
According to coin market cap;
Beam has a current market value of $0.7542
It has current market cap ranking of 402.
Its market cap is at $66,388,809.58.
It has a total supply of 89,012,960 beam.
which exchanges is beam listed on?
Beam is is currently listed on several exchanges such as
Binance
Houbi
Pionex
Gate.io
CoinDCX
BigONE
XT.COM
CoinEx
BitForex
This are just few but I believe I have mentioned the popular exchanges they can be exchanged or traded for.
They can be traded for with their cryptocurrency pairs such as the btc, USDT, ETH, and SXC pairs.
Can BEAM be mined?
Since beam uses the proof of work algorithm, the token can be mined in the users wallet using either your CPU or GPU.
A user can also mine beam token using software.
This option is referred to as Bminer.
There are other options available too
Describe the steps in creating a wallet for the Privacy Coin of your choice. (Screenshot required)
Creating a privacy coin wallet for beam.
a) I open the website of beam here.
b) After opening the site successfully I then select the download option as shown by the red shape.
c)since I am using a computer, I will select the desktop option as shown by the red shape.
d)after downloading the wallet for my desktop, I will now click on install it and agree to terms and conditions.
e)After I will then click on run the wallet to complete the installation process.
f)I will now click on the create new wallet option.
g)Then click on generate seed phrase.
You will be provided with a phrase which you should keep safe because loosing this phrase means resetting your account can't be possible which will lead to you losing your money.
h)You will then be provided with random words from your phrases saved, now input the requested phrases according to their numbers.
i)Then after entering the phrases in correctly I then continue by clicking next.
j)After, I then create my password and then after confirming I click on start using wallet.
k) Then I select the run integrated mode option and then click on start using wallet.
I) You then wait for the wallet to configure and then load, this normally takes up to 5 minutes with good connection.
J) My wallet is then created as you can see from the screenshot below.
Explain the reason you chose the Privacy Coin. (State the advantages and disadvantages)
I choose Beam coin because it uses proof-of- work in its mining, this means miners who mine the coin are allocated rewards for mining the coin.
I again choose the coin because I can have my wallet with me anywhere I am, I can actually save my wallet on my android phone and access it anywhere I want at my convenience and it has a feature where I can either use my face id or touch Id to make payment making it secure.
Privacy coins come with great advantages for users who don't want their transactions traced back to them.
But for every thing comes its disadvantages and these type of cryptocurrencies are no exception.
The following are advantages and disadvantages of beam privacy coin below.
Advantages
■ The beam token addresses the problem of privacy and provides utmost anonymity to users who want to stay private.
■ Informatiom about transactions are not stored on the blockchain
■ Mining the beam coin does not require complex procedures as a user can mine it from his wallet.
■ The coin allows users to decide who they want to have access to their private information and therefore users have control over their privacy.
■ The cost of mining beam is very cheap as a user can use his pc or even his an android phone.
■ Mining beam is energy sufficient as complex tools are not needed to mine it.
Complex tools consume a lot of energy.
Disadvantages
■ Because of its private nature specific exchanges do not list it in my market.
Example: coinbase.
■ It is a popular coin but it is shown that it is not used by many people as it has coin market cap ranking of 402.
■It goes against the core reasons why cryptocurrencies were created.
Cryptocurrencies were created for transparency.
■Considering that btc can perform up to 7 transactions in a second, it is rather disappointing that beam can only perform 3.5 transactions in a second.
■Thieves can use this coin to send large amount of funds and it will not be traceable by the authority.
■Considering that beam coin has not been in existance for too long, it will take a lot of time before it gains popularity.
Conclusion
Privacy coins are a treat way to stay away from the public eye for people who like privacy and want to do not want transactions traced back to them.
However I do not like the idea of privacy coins as it goes against the core value of creating cryptocurrencies in the first place.
Cryptocurrencies were brought into existence for transparency and privacy coins go against that.
Since privacy coins transactions cannot be traced back to the users, unpopular coins might turn up to be fraudulent and the funds of the users stolen cannot be gotten back
This give criminals the mandate to steal large sum of funds without the funds being untraceable and this criminals cannot be held accountable.
Even though privacy coins has it's advantages and people like it, people who are true believers of cryptocurrency should not be interested in it.
As its disadvantages are also very costly.
note- all photos which are not cited are screenshots from coinmarket cap and beam's site
Hi @rubilu123, Thank you for taking my class in the 8th week.
This is the detailed assessment that you get from the results of writing the homework that you have created:
Review dan Feedback:
Your fundamental analysis is good, but it could be improved by digging up more information.
The conclusion you make is not about the privacy coin you are discussing.
Re-learn the "Markdown Style Guide" to improve your writing skills.
Thank you!
Hi professor @levycore.
Am sorry but i think this is not my rating, I have made datailed analysis according to the coin i took and I have followed all your rules and guidelines.
Can you please review my ratings.
Thanks.