For those who are interested in green initiatives, Burstcoin (BURST) might just be the currency for you. Burst utilizes greener mining practices by conserving the valuable energy typically needed to mine. BURST itself currently has 2,073,376,063 coins in circulation and comes with a relatively low price tag of just $0.003150 (as of December 6, 2019). The unique value of this crypto stems from the currency being mineable, as well as the company’s claims that they were the first to implement Proof of Capacity (PoC) mining.
Sold? Sorry, that was a trick question. There are a couple of facts you should consider before bursting into this crypto-sphere.
History of burst
The cryptocurrency Burst is a coin that has been built based on the currency Nxt (NXT) by an anonymous user back in August 2014. Without revealing their identity, the creator left after a year. This left the future of Burst in the hands of its community.
Without formal technical leadership, no major developments took place until 2017. It was in the summer that the PoC Consortium (PoCC) took over. Under their management, the crypto community saw the introduction of the Burst wallet, new software, and the Burst Dymaxion. The Burst Dymaxion outlines a network that would allow Burstcoin’s network to scale in response to the growing community. This whitepaper is still believed to be historical, as it does a deep dive into the tactical integration of a system that would allow for an infinite number of transactions to take place. Also included is the implementation of new algorithms, transaction fees and node capabilities. At a very basic level, the PoC Consortium believed this would truly elevate Burstcoin to the next level.
Now let’s fast forward to January 2019. This month marks the official creation of the Burst Alliance, a team which now leads Burst. This alliance includes two key groups: The Burst Applications Team and The Burst Marketing Team. Both groups work closely to continue growth and improve user experience. The coin still enjoys its online presence at burst-coin.org.
Why do we need another coin?
As you might have noticed, there has been a bit of a trend toward green financing. In the crypto-sphere, this means that currencies that leverage smart contracts and the security of blockchain would be popular in the minds of consumers. As a result, the coin is considered a first mover for its elimination of wasted energy in the mining process. It is also known for reducing network control by large miners, unfair coin circulation during the mining process, and an overall lack of decentralization.
Burst is believed to be more than 400x more energy efficient when compared to Bitcoin setting it apart from other altcoins. That said, the BURST coin offers some pretty standard features in the crypto-sphere including anonymity, decentralization and high security.
The company is also known to be the first blockchain to implement smart contracts which have multiple purposes including the deployment of chain games. Their built-in marketplace also allows for easy transactions and encrypted on-chain messaging.
The Smart Contract
Okay, hold on a second. A smart contract, why is this important when I select which crypto I want to be investing in? The implications can be made in not only how blockchain technology can be incorporated into our everyday lives, but also how it can bring down the company’s operational costs.
While many cryptocurrencies utilize the blockchain to ensure money is transferred safely from point A to point B, a smart contract proves to be equally valuable as it allows contracts to be governed without a lawyer. To put it simply, smart contracts are written in code form and posted to a public blockchain. After a trigger event that is indicated by the code, the contract is posted. The public can now watch this series of events unfold. Keep in mind that because no changes can be made after the posting of the contract, there is greater security as the contents of the contract are monitored by the public. This further reinforces the concept of conflict-free trading across the globe.
Proof of Capacity Defined
Before we get into the thick of mining, let’s first consider the process. Burst uses a Proof of Capacity (PoC) opposed to a Proof of Work (PoW) or Proof of Stake (PoS). For the purposes of Burst, we will consider the concept of PoC.
This process is unique in itself, as the process starts even before any mining happens. This rings true because solutions (also known as plots) are stored directly into your computer’s hard drive. Since some solutions are faster than others, the miner with the plot that completes the problem the fastest is the winner of the block. This process might not sound easy but have comfort in knowing that each solution can be used in the next block. This means that if you don’t win, your plots can continue to be used in each block following.
This process has many positive benefits against PoW or PoS. First, there is more equality because anyone with a computer can technically mine. Additionally, it removes software that requires a lot of energy. For these reasons, many believe PoC is a good alternative to the other mining methods mentioned.
To break down this very complicated process, let’s start with the topic of capacity. Your computer has a certain amount of storage, which is signified by the space on a hard drive. Burst leverages this by allowing miners to use the space available on their hard drive space instead of the computing ability of their device. Each block is estimated at about 4 minutes with transactions not exceeding 80tps.
Unfortunately, it is a little more complicated than that. Naturally, anything technology related is made up of large chunks of data, but in miner terms, we will call these plots. These plots of data are then saved somewhere you have the capacity, which as you might have guessed is on to your hard drive. All of this data is saved onto a block or a page in the record book. This process is also referred to as forging a block. Keep in mind you can forge blocks alone or with a group of people that we can also call a pool. However, the block reward for doing this will then be split up amongst everyone within your pool.
So, where exactly does this conserving come back in? To keep adding transactions to your record book, the mining of Burstcoin actually occurs through the reading of your storage for more plots. In each round, miners begin scan the data in their storage to find a solution. The miner who finds the solution in the shortest amount of time is now able to forge the next block.
The chances to forget a block are based on a term called network difficulty, which means that the chances of finding a solution are based on the other miners.
For those enthusiasts out there, here are some tips to get you started. Some sources do not recommend you begin mining since this process has been largely overdone already. But we’ll leave it up to you to make this decision.
Part of the beauty in Burstcoin is that anyone can do it (well maybe not anyone but you know what we mean). Any regular hard drive including Android-based systems can be used. That being said you will likely have a slight advantage if you are able to get a hold of a hard drive and preferably one with a high storage capacity at that. Another recommendation, is a good graphics processing unit (GPU) as this will speed up the process.
You will also need a set-up that allows your computer to cool without being a safety hazard. Let’s face it your computer has to work pretty hard to mine. This means a good cooling system is also necessary to avoid any unwanted fires.
A pool is better than one
To find one solution in a heap of many would no doubt require a lot of time and effort. Some miners have therefore decided to join a group of miners and in crypto lingo a “mining pool”. In this case, the rewards of a given block are then distributed to everyone in the pool.
Pools are a little more than teamwork. In the burst world a pool may also be subject to a deadline limit or a minimum payment threshold. Even with these restrictions in place, your chances of earning increase from that of a solo miner.
Should I invest in Burstcoin?
When looking at the facts, BURST ranks 360 according to CoinMarketCap, suggesting it is not on the radar of most. Overall, the return on investment (ROI) since inception is 59.59%. To put this value into perspective the ROI of Bitcoin is about 5448.95%. Additionally, like any good research strategy, the team behind BURST should also be considered. Compared to other comparable currencies, the development team is viewed by the public as inactive due to their few (and far between) posts on the Reddit platform.
While we like the concept of green that doesn’t always mean that greener = better. We agree that whenever possible we’d like to support green initiatives because it makes us feel better about ourselves. However, that doesn’t always mean that investing in alignment with our values will align with a higher profit. On the other hand, the smaller the player the greater the potential for growth. With a low cost associated with each Burstcoin, more coins can be purchased with the same available funds.
While market volatility is often a concern, Burst claims that the development and support of the coin is kept separate from economic volatility in the market. This is believed to be because it is a community-driven coin, making the coin more stable. Again this is another claim that you should take with a grain of salt. If this claim is, in fact, true, this would suggest that less volatility means less opportunity for loss. But with less loss comes less potential gain. This runs contradictory to the belief that smaller players have more room for growth and should be considered in the comparison.
How can I buy Burst?
Burstcoin is available for trading on several of the most popular exchanges including Upbit, Bittrex, STEX, Livecoin, xchange.me and QBTC. Since October 2019, Burstcoin is also listed on eterbase in a couple of key pairings. These pairings include BURST/EUR, BURST/USDT, BURST/BTC, BURST/ETH, BURST/EBASE, BURST/XBASE, BURST/XBASE-B.
Regardless of which exchange you decide to use, a necessary step will also to be to download the Burst’s dedicated digital wallet (Burst Wallet). This fully integrated wallet is what allows users to withdraw their coins from an exchange and is available on Android smartphones. Don’t fear, iPhone users, Burst promises us a mobile wallet will be available for you soon!