What is the electron?
Electroneum is a mobile-first cryptocurrency aimed at mass adoption. The Electroneum team acquires cryptocurrency like as simple as downloading an app. By breaking down the barriers that surround it, the Electroneum team believes they can distribute their coins far and wide.
There are countless people who want to buy various coins but are not willing to send embarrassing selfies with their passport to a website they know nothing about. There are also problems related to the connection of bank accounts and the payment of incredibly high fees. Electroneum believes it has the solution and in this guide we will explain how they aim to bring the cryptocurrency to the masses.
In this guide we will cover the following:
How does Electroneum work?
Electroneum, also referred to as ETN, is built off the Monero codebase to allow transactions on a decentralized blockchain. Like Monero, Electroneum has some built-in privacy features. One of the main criticisms of Bitcoin is that the balance of each portfolio address is public and easily searchable. This problem is solved with the stealth address of Electroneum, a one-off public key that "prevents recipient funds from being connected to their wallet. This address can be verified by a third party to demonstrate that the transaction has taken place (with the sender sharing the public display key).
The recipient receives their funds through the private display key of their portfolio that scans the blockchain. Once detected and recovered from the portfolio, a single-use private key is created (corresponding to the sender's public key).
The recipient can now spend those funds using his private spending key. This occurs without the sender, the recipient or the publicly linked negotiated amount. If you would like to know more about the privacy technology behind Monero and Electroneum, we suggest our Monero guide here.
Transactions are relatively fast with dynamic rates based on the level of traffic on the network. You can check the recent blocks here. The vast majority of transactions have less than 0.2 ETN in total fees and new blocks are added every minute.
The Electroneum codebase tries to avoid powerful ASICs with a huge advantage over CPU miners. Mining uses a memory-bound algorithm to try to encourage CPU extraction, giving average users easy access to ETNs. The ability to give everyone access to this currency will be a recurring theme in this guide.
The main differentiator of Electroneum is the use of a mobile app to attract new users. It is already available for both Android and iOS.
The app provides access to a digital wallet and the ability to send and receive ETNs. For added security, you also have the option to create offline card wallets. It is advisable to distribute the coins on different paper portfolios in case you lose one.
The app encourages you to share your knowledge of Electroneum with the world. Anyone who invites five friends to participate in the app is entered in a competition to win 5,000 ETNs. Even new users who invite can win.
The most interesting feature is the ability to perform mobile mining. The app will allow your phone's CPU to engage in simulated mining activities. This does not cause the phone to overheat or lose significant battery life. Mining also uses a negligible amount of Internet data. Although your mobile mining does not actually help to confirm the new blockchain blocks, you will still receive prizes.
The app requires the use of your CPU to teach you the connection between the power of your computer and the ability to extract. In the end, they hope to convert some mobile miners into miners on a computer. The use of the phone's CPU also prevents people from simulating thousands of app iterations on a computer to receive free coins.
But why pay people to do virtual mining? "Mobile miners bring the utility of viral marketing on Electroneum." It is important to remember that they are not bringing blockchain utilities, they are bringing a different utility: they are bringing users to a ridiculously low CPA and allowing to Electroneum to have viral growth ".
The app now has 1.5 million registered users on Android and iOS and continues to grow.
Supply of coins and sustainability
The team has reserved 4.4 billion ETNs for investors in ICO. Those who shared the ICO and translated the relevant information received a total of 20 million ETNs. The 12-person core also reserved 20 million ETNs for funding purposes. There is a circulating offering of nearly 8.5 billion ETN will eventually reach a maximum supply of 21 billion ETNs through miners' premiums.
21 million coins were chosen on 21 million Bitcoins for psychological reasons. They felt that users would be more satisfied with earning full coins as a reward and would prefer to make purchases in whole values. After all the coins have been extracted, the miners will still be able to profit by collecting the transaction fees.
History of Electroneum
The Electroneum ICO has reached its maximum limit of $ 40 million during fundraising. Their release on Github was on November 1st. However, before the launch of the mobile app, they were hit by a distributed denial of service (DDoS) attack. The team had to close their servers and work for 26 consecutive hours to face the attack.
Eventually, after some delay, ICO investors distributed their coins and Electroneum continued to work to achieve the goal of spreading the ETN to the masses. Over 690 million ETNs were transferred during the first 24 hours, requiring only 430 ETNs of fees.
Sunday 18.41 Coding as fast as possible. Working to get this live all weekend. Thanks for your patience, I hope to receive good news tonight! pic.twitter.com/wuZQZGoHUJ
– electroneum (@electroneum) November 5, 2017
Electroneum team and progress
Electroneum defines the first British cryptocurrency. The team of 18, based in Kent, is led by Richard Ells, the co-founder of SiteWizard and Retortal.com. James Atkinson is the head of the Electroneum development team with over 10 years experience. He is leading the charge on App Electroneum.
Dean Cole, on the other hand, is known as the "team member with the least sleep … consumption of gigantic amounts of caffeine". Maintains and develops the servers necessary for the extraction and the transaction in Electroneum.
The Electroneum team actively seeks partnerships to further disseminate ETN. They have partnered with XIUS, a telecommunications payment giant. Electroneum wants to use this partnership to promote the use of its mobile mining app as a tool to offset the costs of owning a smartphone.
BMedia, a Japanese social media and e-commerce company, has also partnered with Electroneum. The 500,000 Facebook followers of BMedia and the monthly coverage of 10 million users should play a key role in ETN's marketing plan.
The Fanfare company distributes prizes and awards to users who upload their videos on the products they love. Electroneum worked with them to hope that one day they will reward their users with ETN.
The online game
The Electroneum team hopes to replace the game currencies, such as the World of Warcraft gold, with ETN. Imagine all completed missions and items sold that pay in a currency that can easily be converted into other cryptocurrencies or fiat. This would not only encourage players to play more, but the gaming company could charge ETN deposit and withdrawal fees from their ecosystem.
The creation of a game that advertises the ETN as a game currency could also be an effective marketing tool. A mobile game involves trying to pilot a missile on the moon during the ETN collection. When the player dies, he must watch a video ad to help finance the award-winning ETN with users.
There are several gaming websites that already accept Bitcoin, but the problem is that it is difficult for many people to get it. Most of the online gambling game takes place outside of America, where Bitcoin is particularly difficult to acquire. Most countries do not have access to Coinbase or Gemini and their local exchanges often have commissions of 7% or more. Electroneum hopes once again to reduce friction and encourage gambling sites to accept the currency.
Extraction of elettroneum
As mentioned above, due to the robust ASIC nature of the Electroneum mining algorithm, it is still possible to extract coins with only the CPU. You can complete a quick download and join a mining pool right here. The average jackpot is around 9,500 ETN.
The Electroneum timeline is quite large. Some interesting developments for the rest of 2018 include a community application, a gig economy website and an immediate payment solution. However, there are no detailed guidelines beyond this or for the time horizons in 2019.
History of trading
The price of ETN's ICO was one cent. Those who managed to sell at the highest levels in the last few years could have obtained returns above 15 times their initial investment. Unfortunately, even the good news of the mobile version of Miner and iOS did nothing to stop the sharp decline in ETN's price in 2018.
The team recently announced an exciting development that will allow Electroneum to be KYC-compliant and provide better payment integration with existing companies. Most business news, however, most likely will not transfer the price since ETN is still a small coin. When the market recovers in the wake of Bitcoin, we can see life again for ETN.
Where can I buy Electroneum?
ETN was initially only available on Cryptopia. Fortunately, KuCoin picked it up for the listing which is a good sign to improve the liquidity of the currency. In addition, there are some small exchanges where they can be traded, even if with only a few buyers and sellers, you may find it difficult to fill the exchanges.
Where can Electroneum be stored?
Here you can find the Electroneum wallet manager.
Through the portfolio manager, you can set your wallets online or offline. The registered online portfolio is accessible via the app using your own login data. You can follow this detailed team guide on how to create, store and protect your offline portfolio.
If you're new to crypto and do not like the hassle of registering with exchanges, then downloading the Electroneum app and trying to win free coins could be your best entry into this world. Also, if the noisy and expensive ASICs intimidate you, check the Electroneum CPU mining solution. Although Electroneum is named after the electron, it is difficult to be negative about its future.
Editor's Note: This article was updated by Ryan Smith on March 11, 2013 to reflect recent changes in the project.