Everyone involved te the cryptocurrency ecosystem is well aware of how bitcoin uses a proof-of-work algorithm. Fresh coins are generated through the mining process, which becomes more difficult overheen time. However, not all cryptocurrencies te existence can be mined. Below are some of the more popular altcoins that opoffering no mining incentive, yet are still fairly valuable.
The Ripple network works ter a rather different manner compared to Bitcoin or even Ethereum. Positioning itself spil the global settlement network, Ripple is not your average cryptocurrency by any means. Obtaining Ripple can only be done by buying the currency from various exchanges, spil there is no option to generate XRP by mining. A total of 100 billion XRP has bot created once the project launched. A few coins are demolished every time a transaction takes place.
NXT is a popular altcoin that cannot be mined ter the traditional sense. It is possible for users to forge fresh coins, but it doesn’t require dedicated hardware to do so. Instead, users need to leave their wallet open – assuming it contains a balance – and they will earn puny amounts of rente te the process. NXT runs a proof-of-stake algorithm, which makes mining te the traditional way obsolete.
Mining Flaps is entirely out of the question spil well, since the project makes use of a delegated and leased proof-of-stake algorithm. The entire supply of Swings tokens wasgoed premined, albeit users will be able to “mine” tokens te the future using a laptop or mobile device. However, the entire token supply will never surpass the 100 million mark. All of the available tokens were issued during the Sways pre-sale and the team’s bounty program.
When Factom wasgoed very first launched, there wasgoed a lotsbestemming of excitement regarding this project. Considering how the project runs on top of the bitcoin blockchain, it cannot be labeled spil an altcoin vanaf se. Factom is something entirely different, albeit the project’s currency – called factoids – can’t be mined directly. One could call this system “proof of usage”, spil users who hold factoids can convert them into Entry Credits to be used within applications using the Factom blockchain.
The network does not support mining, spil a Factoid Software Sale wasgoed organized once the project wasgoed announced. Investors who bought Factoids can either sell them on an exchange or keep them spil a implement to buy Entry Credits. It is also possible to earn Factoids, by sharing computing power and resources with the network. It is fairly an intriguing project that anchors gegevens into the bitcoin blockchain. Te fact, Bitcoin’s proof-of-work algorithm ensures all of the gegevens processed by Factom is safe from tampering.
MaidSafe is another one of thesis projects that does not permit users to mine the native currency. All of the available tokens were issued two years ago, and no more tokens will be generated moving forward. This also makes it somewhat unlikely to generate Safecoin right now, albeit it will be possible to mine the currency ter the future. Investors hold 10% of the total supply, with 90% waiting to be rewarded to miners providing resources to secure the system. However, Safecoin is not mined with graphic cards, but rather by users dedicating hard drive space to the project.
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About The Author
JP Buntinx is a FinTech and Bitcoin enthusiast living ter Belgium. His passion for finance and technology made him one of the world’s leading freelance Bitcoin writers, and he aims to achieve the same level of respect ter the FinTech sector.