Last updated on September 19th, 2016 at 12:03 pm
Fluttercoin may be a coin with the tried and true algorithm of scrypt, but it’s definitely anything but ordinary. This is a coin with high ambitions, that is aiming to create an environment with more transactions than Bitcoin, by giving users a reason to spend it. Besides using a hybrid of proof-of-work (POW) and proof-of-stake (POS), there is also another way of mining called Proof-of-Transaction. Proof of Transaction (POT) rewards users for using coins for a purchase. Whenever coins are sent, there is a chance of finding a POT block. Fluttercoins website says that this is part of the “Butterfly Effect” which basically rewards people that move the coin around, as it fuels an economy.
What Makes Fluttercoin a Unique Digital Currency?
For example, if someone sent 100 FLT to buy something, they could be rewarded additional FLT by POT, allowing them to purchase even more items, and further increasing the butterfly effect. This also increases network security as it just increases another layer which intruder has to break through to even attempt a 51% attack.
An attacker would have to own 51% (or more) of the following:
- Overall network hashrate
- Overall amount of coins
- Be hosting 51% or more of overall transactions.
As obtaining just one of these 3 requirements is hard enough, especially when ASICs come into play, attackers will think twice before trying to 51% this coin. Bitcoin has managed to avoid it with POW alone, but POS and POT give two additional levels of protection.
How is Fluttercoin’s Supply Regulated?
With no maximum number of coins, thanks to an ever increasing supply of FLT, Proof of transaction should allow for a teeming economy where money is always circulating. This solves a problem that many fiat currency competitors are struggling with, and which many have worried could effect Bitcoin in the future.
There is however a steadily decreasing random block reward, so inflation shouldn’t be a problem, as the rate at which the supply of FLT increases will slow as the coin becomes more established.
Right now, Fluttercoin is slowly generating steam as number 25 in terms of market cap. With block rewards still high, and prices still cheap, now is a good time to jump in at an investor and mining stand point.
With sound theory, and incentives to spend money, this is a self-supporting coin that can surely play with the big names in cryptocurrency.
Fluttercoin proves that algorithm and block rewards is not everything that goes into a coin. Making new proofs, such as the aforementioned proof-of-transaction, and an emphasis on a self-supporting economy that rewards using it, can provide the basis for a new way of looking at digital currencies.
I see Fluttercoin as a coin that will be used for high-traffic areas, such as a busy marketplace or people going on a spending spree. With so many transactions going on in situations like the ones stated above, POT will occur more frequently, and further increase spending, thus strengthening the economy.