In this article, the readers will get to learn more about the Electroneum cryptocurrency network, what it set out to achieve, how its users benefit from using it, why its adoption levels are expected to rise and what that means to potential investors.
Currency name(s): Electroneum (ETN)
Genesis Block: September 2017
Total Supply: ~9.5 billion Electroneum are currently in circulation; maximum supply is limited to 21 billion
Features: instant transactions, mobile-native, decentralized
The Electroneum network is a form of blockchain technology that is made with an intent to allow unbanked people around the world to be able to make purchases and complete transactions without having to rely on banks. This has been the goal of the team behind the Electroneum network – to supply payment methods for in-game purchases, as well as other mobile payments. That’s why the network is trying to find mass adoption among mobile smartphone users (it is estimated that there are around 2.5 billion smartphone users in the world today), and that is the reason why this network is native on smartphones running Android and has also been made available for iOS users as well. The network itself was built on Monero’s architecture but was later forked so that various other users would find the token appealing as it allowed ASIC GPU mining, which is not available for Monero users. It is also similar to Facebook’s own newest addition to cryptocurrency, Libra token, as it wants to improve payment methods for people who are online but are unable to use the web for transactions for any reason.
The Electroneum network operates similarly to Ethereum and Bitcoin, in the way that it uses the CryptoNight proof-of-work algorithm, meaning that one user’s transaction cannot be visible to anyone else using the network, apart from the sender, the receiver or anyone who holds the secret keys used to complete that specific transaction. Opposite of this proof-of-work concept is proof-of-stake found in the Tron network and proof-of-authority used by the VeChain network.
We have seen while performing the Electroneum network market analysis that this network uses two important methods for operating, the first being CryptoNight algorithm for implementing the proof-of-work concepts, and the second being Ring Signatures, similarly to how the Monero network has them implemented. These two algorithms are very important in order for the Electroneum network to function properly and the users are safe when completing transactions over this network.
As we mentioned above, the CryptoNight algorithm is a proof-of-work method that is implemented so that the network increases its decentralization, privacy, and anonymity when using the network. However, the CryptoNight algorithm’s purpose is also to allow to mine new blocks of information within the blockchain. The proof-of-work method is used in the biggest blockchain technologies like Bitcoin and Ethereum but can be found in many various, smaller altcoins such as the Monero network. The proof-of-work method is applied to every new block that is considered to be added to the blockchain – if it is unique and follows a logical progression through the chain, it can be added, but not before the whole blockchain is swept to confirm if that new block is indeed unique.
Regarding Ring Signatures, they are an elaborate way to reach a consensus within a blockchain network and the most known cryptocurrency networks using it are Monero and Verge. Whenever a transaction between users is about to occur, several single-use public keys are generated and assigned to both the users sending the funds and several others, thus hiding the link between two users. For completing transactions, the network charges fees that are mostly around 0.2 ETN.
Our Electroneum market analysis shows that the price per Electroneum token is slowly on the rise, after strong fluctuations in the previous months. The current price per token is $0.005, while the lowest ever recorded was $0.003 per token. The highest price per token ever recorded was $0.236 in November 2017, shortly after the launch of the network. For the time being, the Electroneum market cap sits at around $57 million, but that valuation is expected to increase once all Electroneum tokens are inserted into circulation. HitBTC, KuCoin, and Liquid support Electroneum token trading, where interested parties can trade it for other well-established cryptocurrencies such as Bitcoin and Ethereum, as well as fiat currencies such as the US dollar and Euro.
The Electroneum network was created with a purpose to break through to the smartphone user base compared to other cryptocurrencies that were designed to be used primarily via PCs. More so, this network was created also with a purpose to simplify the use of blockchain technology and to allow for people unable to become bank clients to make payments across the globe. That is the reason why, shortly after its launch, the price of tokens soared and reached high valuations. However, as the whole cryptocurrency world experienced tumultuous times, this token was no different than others, losing a large part of its valuation. However, as the cryptocurrency world is looking up across the board, many investors are expecting the prices to be as high as their peak during winter 2017/2018 and to even go beyond those marks. That’s why a good position for this token is either medium or medium-long.
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