Blockchain is a varied industry. It has thousands of projects providing solutions to a multitude of different challenges. Bitcoin is arguably the most popular and valuable cryptocurrency. However, it cannot cover all options due to its design.
Over time, BTC has become a store-of-value asset rarely used as a currency. For instance, its poor scalability prevents holders from using it daily for payments. Transactions can take quite a long time (15 minutes on average), discouraging users from this use case.
Consequently, we’ve seen the emergence of “payment cryptocurrencies.” They attempt different solutions to the scalability issue. Electroneum is one of these lightweight cryptos that provide fast and cheap transactions. It is present on various exchanges like Godex.io.
This article analyzes its fundamentals and unique features that make ETN a crypto worth considering for your portfolio.
Electroneum Technology
Electroneum was launched in 2017, right before the peak of the bull market of that period. This allowed this project to make considerable gains and grow in popularity within the crypto community.
Initially, Electroneum ran on a fork of the Monero code, which allowed it to provide users with mineable tokens and a high level of privacy. 2019, the developing team migrated the chain to a proof of responsibility consensus.
This technology provides unique advantages to Electroneum holders. This includes mining ETN coins with their mobile phones. In addition, it provides for a fair system, where miners are expected to participate in the network by spending a portion of their rewards.
In a nutshell, Electroneum uses a permissioned validators system of 12 participants. These NGOs participate in the security of the blockchain. They also spend their mining rewards on charities and further project developments.
ETN Mobile Mining
Unlike Bitcoin, which requires power-hungry, expensive machinery for mining, ETN uses everyday smartphones. Users can easily install the Electorneum wallet on their mobile phones. This allows any holders to mine ETN tokens and participate in the security of the blockchain.
The idea behind this feature is to allow bankless users worldwide to access fast and cheap payments. Anyone can trade Electroneum using an ETN to BTC calculator.
Where to Use ENT?
The premise of ETN is to act as a currency for users who don’t have access to reliable online payment services. PayPal is still restricted in many countries, and ETN aims to provide these users an alternative.
Over the years, the ETN team has created various partnerships to spread the adoption of their cryptocurrency. Consequently, ETN has multiple use cases, such as:
- Topping up your mobile credit with partnered network providers.
- Buying popular digital gift cards for Steam, Amazon, Google Play, and many more.
- Sending money across borders instantly and at near-zero costs.
- Buy goods and services from thousands of compliant merchants across the globe.
While Electroneum is similar to other cryptocurrencies, its focus on payments makes it appealing for daily usage.
KYC & AML Compliance
Electorneum complies with anti-money laundering laws across different regions. It does it to provide high compliance and acceptance from popular brands and merchants. It requires users to go through a know-your-customer (KYC) process and identify themselves before using their service and app.
The crypto community considers this compromise as bittersweet. Electroneum scraps any privacy and anonymity to cover the most payment services possible. Crypto users who wish to remain anonymous should look elsewhere. However, for anyone else, the advantages that Electorneum proposes trumps the drawback of KYC.
Is ENT a Good Investment?
Electroneum hasn’t performed very well in the last bear market. However, this declaration stands true for almost 99% of the blockchain industry. Considering the prospective bullish rally in the crypto markets, the current low price might be an excellent entry point.
ETN has a capped maximum supply of 21 billion coins, with 17.5 already circulating. Eventually, all coins will come into circulation. The Electroneum cryptocurrency will become deflationary in comparison to ever-inflating fiat currencies.
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