FAQ


FAQ

  • What is And Coin ?
  • Why does And Coin set energy saving as one of the goals?
  • How is energy saving achieved?
  • What is Andcoin-wallet?
  • What is PoW ( Proof-of-Work)?
  • What is Masternode?
  • What does it take to run masternode?
  • How does masternodes useful for cryptocoin investors?

What is And Coin ?

And Coin is a digital payment solution. And Coin is decentralized and running constantly without downtime and the need of interference by intermediary, authorities and censorship. People can make payments using And Coin to anyone in the world freely. In the meantime, anyone can issue And Coins through their personal computers, and software-based mining or minting processes. And Coin is implemented utilizing the proof-of-work protocols. And Coin puts efforts on removing the competitive nature of mining, and particularly focuses on fairness, cost effective and energy efficiency when issuing coins and maintaining the public ledger and the blockchain system.

Why does And Coin set energy saving as one of the goals?

In the consensus-based proof of work protocol, the miner having greater hashrate and hence less time of finding block owns the most probable chance of voting for the blocks and receiving the block rewards. This leads to profit-driven hardware competition race in order to acquire more computational power than the others. The concern raised is the global energy consumption by the cryptocurrency. For example, "One Bitcoin transaction required the same amount of electricity as powering 1.57 American households for one day (data from 2015)." "In a recent research, experts argued that bitcoin transactions may consume as much electricity as Denmark by 2020." (Link).


How is energy saving achieved?

Notice that the hardware computational power race is profit driven, the block reward is where one should be looking into. A ’soft’ control of the network activity through varying reward is introduced in And Coin. Contrary to constant rewarding in a certain period implemented in most of cryptocurrency, such as bitcoin, we propose a network-dependent rewarding model system, primarily including two phases: 1) activities encouraging phase in which higher rewards are issued at higher network activities; and 2) discouraging further increase of activities by reducing rewards. The advantages of this system include 1) fair distribution of rewards among a variety of contributors, and 2) enforcing a limit to the network activity and hence the cost of maintaining the PoW network.
For details, see the article - A network-dependent rewarding system: proof-of-mining.

What is And Coin wallet?

And Coin wallet which has two forms, the daemon and the GUI wallet (currently using Qt implementation). Running the And Coin wallet is sufficient for operations, including maintaining the blockchain, receiving and sending coins.

What is PoW (Proof-of-Work)?

Proof-of-Work happens through miners trying to solve exceptionally difficult math problems. Finding a solution is basically a guessing game, but checking if a solution is correct is easy. Miners aren’t able to cheat the system because it takes real-world resources to work out these solutions, you can use Bayes’ Theorem and the laws of Thermodynamics to prove that a given block has indeed required a certain amount of work to be mined and this way, users can simply pick the longest valid chain with the highest amount of work as the correct chain.
 The And Coin's proof-of-work (PoW) protocol, in addition to required computational works to be done to deter denial of service attacks, is also a network-dependent rewarding model system. The PoW rewards participants who solve complicated cryptographical questions not only to validate transactions but also to create new blocks and generate coins. The amount of coins generated are constantly monitored by the PoW protocol and tuned on the basis of an attraction-repulsion model: 1) incremental rewarding to stimulate network activities during passive mining phase, and 2) decremental rewarding to mitigate redundant mining sources during agressive mining phase. PoW can effectively govern the And Coin's network and limit it under a certain scale, enabling the general devices to be capable of mining And Coin. ++ For details - A network-dependent rewarding system: proof-of-mining.

What Is A Masternode?

Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time, just like your have Bitcoin full nodes and is always up & running.

But masternodes are considerably different in their functionality than normal nodes.

They are different because they perform several other functions apart from just keeping the full blockchain and relaying blocks/transactions as a full node does in Bitcoin/Litcoin.
Some of the special functions that these nodes perform are:
  • Increasing privacy of transactions
  • Doing instant transactions
  • Participating in governance and voting
  • Enable budgeting and treasury system in cryptos
These masternodes are not standalone but they are always communicating with other such nodes to make a decentralized network and are often referred in short form as MN.
Note: Mostly the masternodes perform the tasks that I have listed above but it can slightly vary from cryptocurrency to cryptocurrency depending upon how masternodes have been implemented. But more or less they perform these functions in a cryptocurrency.
What Does It Take To Run A Masternode?
Just like full nodes in a cryptocurrency, masternodes can be run by anyone. However, there is an entry barrier in place to ensure that the system doesn’t get malicious. The entry barrier is what one needs to commit or collateralize certain units of that particular cryptocurrency to run a masternode.
This is done to ensure that a masternode owner doesn’t cheat or corrupt the system and the best of doing so is by putting this entry barrier where the masternode operator has something at stake in the whole game.
So naturally, it becomes very less likely that a masternode operator will cheat because he has a stake in running the whole system and even if he chooses to do so he will be punished in the form of devaluation of their own HODLings.
Now that you have understood the concept of masternode, let us see what all things are required to set it up:
  • One needs a minimum amount of coins of that particular crypto. (For DASH MN you need 1000 DASH units, for PIVX MN you need 10,000 PIVX units and for AndCoin you need 20,000 AND) So this minimum number varies from crypto to crypto
  • One needs a VPS or server to host that wallet for 24 x 7
  • One needs a dedicated IP address for that
  • One needs some storage space to save the blockchain

How Are Masternodes Useful For Cryptocoin Investors?

Masternodes are very useful for crypto investors because of running a masternode you are incentivized. Consider it just like earning a monthly or weekly interest on your crypto holdings.
Different cryptocurrencies have different incentive models through which an MN operator can earn a decently monthly or weekly income. I call it smart passive income.
If you are invested in a cryptocurrency that allows you to run a masternode, you should definitely explore that option of earning.
Another thing to understand here is that you should choose the right currency for investment if you are solely investing for running a masternode. You should compare the percentage yield against the investment. In short, you should smartly calculate your ROI.