National Science Foundation Funds Research Into Crypto Dollars

A blockchain startup KRNC has been awarded $225,000 to design cryptocurrency like features for the dollar. The National Science Foundation is an independent agency in the U.S. federal government. That too when there is still a lot of fuss going around the world about the digital dollar.


KRNC is a National Scientific Funded blockchain company that can convert fiat money into digital money by the proof-of-balance algorithm. Soon it will be released as a completely decentralized protocol. And everyone will be able to use it as a cryptocurrency alternative.

KRNC (Key Retroactivity Network Consensus) will design a cryptocurrency to fiat dollars. This digital currency will be distributed to the users without any charge. In other words, unlike Bitcoin or other cryptocurrencies, this currency is not required to purchase. By using this crypto feature for dollars, it will be easy to deal with other decentralized platforms.

The National Science Foundation decided to give this grant to KRNC after closely reviewing the model and its uses. Anna Brady-Estevez, the program manager in the foundation said the potential merits and demerits were mentioned in the application. Only after initially calculating the benefits of KRNC, the grant was awarded to the company.

According to the authorities at the National Science Foundation, the technical aspects of this innovation seemed powerful. It can impact the market because of the competitive nature to traditional cryptocurrencies.

Due to the nature of cryptocurrency of being secure, the KRNC will also increase the security of financial transactions. However, Estevez confirmed that this grant should not be misinterpreted as a bias help towards the dollar. This grant is not an endorsement to influence the dollar at all.

Proof-Of-Balance Instead Of Proof-Of-Work

What is proof-of-work?

Proof-of-Work or PoW is the consensus algorithm that is used in the Blockchain. Whenever a new transaction is confirmed in the Blockchain, new blocks are formed. This is the algorithm of Blockchain to perform transactions.

The PoW is also used by the miners to get rewarded on every completed transaction. The information on each transaction is sent in terms of tokens and these tokens are collected in the form of blocks by the ledger.

This algorithm has its own set of benefits. It prevents anti-DoS attacks and also creates mining possibilities. However, why is it needed to replace this algorithm to use other currency instead of cryptocurrency?

The short answer is a waste of money and endless computing of complex crypto power problems. KRNC works on the approach of measuring the assets. For example, people already own dollars. In that case, they can have a proportionate amount of digital dollars equal to their wealth.

What Is Proof-Of-Balance?

This is a new technology in the field of cryptocurrencies. Unlike Bitcoin, where the blockchain is owned by anyone who buys the cryptocurrency at a higher price. The proof-of-balance algorithm doesn’t work on this requirement.

It means the blockchain will remain secure even if the adversary has control over the digital currency. This protocol also protects the cryptocurrency from external attacks. Thus, it can perform more securely and reliably.

Taking an example of Bitcoin, KRNC is going to freeze its digital cryptocurrency. It will create a sense of scarcity of this digital currency among the users. This will happen at the launch of this innovation according to the company.

If anyone wants to acquire digital currency, they can deposit fiat dollars in their account and get it assigned to them. After the currency is assigned, they can use it purchase goods or trade the gold. In short, it will work the same way Bitcoin works.

Another important feature is to use the digital currency to buy something or to trade it separately from the fiat money. Or it can also be used as a digital dollar. This digital gold works hand in hand with fiat money. No matter what’s the price of one of them, both are protected against the volatile market.

In the proof-of-work algorithm, the Bitcoin is in control of anyone who pays the highest cost of mining. Just the way auction works. The KRNC digital currency works opposite to it.

If the opposite party tries to purchase the large chunk of this digital currency, the initial fiat money will remain secure. It is way more secure than Bitcoin, that too at no extra cost. It is not just available to miners and traders, but anyone who owns fiat money can have KRNC.

New crypto trading platform launches with forex traders in mind

The use of technology in the field of finance and trading has changed the system in a revolutionary way. Though dealing in forex is made much easier in the traditional system, there are many areas where a better system is needed, and the experts address the same with the help of modern technology. 

Forex traders are usually more experienced when it comes to strategies and techniques compared to stock market traders. However, they have not been able to enter cryptocurrency trading as it is slightly complicated. This is no more a problem as CryptoAltum has now provided an excellent platform wherein traders can conveniently trade cryptocurrencies just like forex trades. In this way, forex traders will enjoy a similar interface and platform that they are used to in the forex trading account.

Good demand in the forex market

Due to the increased demand for various items and ease of transportations, many people love to trade with counterparts in other countries. The main issue they face is fund transfer due to the difference in currencies, and the technology has an answer for this trouble. The forex market is enormous compared to the stock market, as traders have the option to get involved in different currency trades throughout the day. In terms of volumes also, the forex market is way ahead of most stock markets. In this regard, it only makes sense to entice such forex traders into cryptocurrency trading. This will naturally boost the volumes in cryptocurrency exchanges, and it will get good participation and movement from the regular forex traders.

Easy registration with the crypto trading platform

CryptoAltum has made the registration process very simple, and traders can even open accounts and trade anonymously, which is never possible with regular forex and stock markets. When you have to open a regular currency trading account or stock market account, you have to enter important information about your passport and other confidential stuff. This is the main reason many people stay away from opening such accounts. However, with the new cryptocurrency trading platform, the procedure is simplified, and traders can open accounts easily without any hassles.

Amazing features of the crypto platform

The CryptoAltum platform offers excellent features for its traders. You can execute orders in quick time without missing any market movement. It also provides good leverage that is many times higher than its competitors in the market. For example, the spread offered on Bitcoin is $3, which is very good considering that many service providers offer in the range of $30.

All in one trading platform including cryptocurrencies

This is not just a cryptocurrency trading platform, and it offers regular forex as well as indices trading platform in one place. In this way, traders need not worry about opening separate accounts for separate market segments. Everything they need will be available in one place through the CryptoAltum platform.

Use demo accounts for crypto trading

If you are not familiar with cryptocurrency trading, you can choose the demo account and use it for a few days or weeks. In this way, you can get to understand various aspects of the market and get to see the market movements in a close manner. Once you get familiar with the concept, you can try your strategies in the demo account and see if they are working towards profitable trades. After this, you can go with the real account and invest your money in cryptocurrency trading. This eliminates some amount of risk as new players need not get into live trading without understanding the cryptocurrency market.

How Has The World Reacted To The Bitcoin Boon And What Are The Lessons For You?

Bitcoin is a digital, anonymous currency that’s garnering much attention as the future of money. It’s sexy, fun, and easy to trade, but it does have some glaring inherent risks. This may be why China recently outlawed this cryptocurrency and several other nations may follow suit. The world powers are scrambling to make sense of this digital currency.

World powers are having a bit of a hard time reacting to the rise of Bitcoin, a savvy, anonymous, decentralized digital currency, which came into existence in 2009.

Bitcoin is stored in a digital “wallet” and is “mined” by computers that solve mathematical puzzles. This currency has had a chartered career. It saw a phenomenal rise when its value skyrocketed from $13 in January 2013 to $1,242 on November 29, ’13, higher than the price of gold. But its value plummeted to $830 on the world’s largest Bitcoin exchange, BTC China. This was attributed to China’s ban on providing Bitcoin-related services and products on its banks.

This had caused quite a dent to the Bitcoin, as data showed that nearly 1/3rd of the world’s Bitcoin transaction was conducted on the BTC China at that time. 

This downsizing of Bitcoin’s value led to a lot of reactions from other world leaders like France. Though it saw a clear potential for growth in Bitcoin, the French Central Bank warned against using this cryptocurrency. It attributed this decision to the volatility inherent in this cryptocurrency and also due to a lack of regulation. The Bank of America Merrill Lynch, however, took a different line when it put out a statement that Bitcoin has the potential to become a major payment option for e-commerce, and it has what it takes to take on traditional payment methods like credit cards, for example.

Bitcoin Value Dropped After US Crackdown on Silk Road 

The US crackdown on Silk Road, a website that the US FBI felt was used for drug trafficking, considerably hurt Bitcoin. But this was only in the short run. Since the people associated with Silk Road made loads of money, this attracted many business people from all over the world. Silk Road thus proved to be useful publicity for Bitcoin in the long run. 

British tycoon Sir Richard Branson also jumped onto the Bitcoin bandwagon when he announced that the Galactic space flight venture by Virgin would accept this digital currency. 

How Should You React to Bitcoin?

Though the world leaders remain wary of Bitcoin because it can be used for money laundering, crime, selling and buying drugs, etc., the fact remains that it’s also a largely democratic form of money. There is also credence to the line of thought that central bank tinkering with the money supply has induced global recessions resulting in savings of ordinary hard-working people globally being washed away in seconds.

The global banking system is in many ways based on deep-seated corruption and profiteering. What does this mean for the average citizen, like you? Should you invest in Bitcoin, whatever your country thinks?

The answer is yes. Bitcoin is a digital currency. It can’t be held or touched, like traditional money. It’s also a volatile currency that’s created by anonymous programmers using a method that’s too complex for most people to understand. 

But, do know that digital currency is the future of money and that even if Bitcoin fails, one of the over 1600 cryptocurrencies globally will take over. The world and you, thus, have to acclimatize to the digital currency world and learn to profit from it.

Crypto Banks Answer the Call Amid Coronavirus-Fueled Economic Decline

Coronavirus effects can be seen everywhere. From traditional companies to technical giants like cryptocurrency banks, it has shown mixed kinds of results in every industry. Whatever the state is, it’s clear that the economic decline is not going to sort anytime soon.

Every business is affected by this pandemic. The economies around the entire world are sinking rapidly. Cryptocurrencies are volatile but the virus has left a significant effect on the growth of technical gold.

Almost all companies and employees are forced to work from home. And they don’t know when they are going to have their coffee in the office. Some of the companies are also shutting down frequently than ever before.

So, even though cryptocurrency can face uncertainty anytime, it is obvious to have significant effects on the crypto banking system. Let’s find out whether the effect is going to be positive or negative.

How SoftBank Is Going Through the Coronavirus Crisis?

A corporate giant SoftBank is also facing its worst times due to the pandemic. But this is not the only loss this company has faced until now. The SoftBank Group Corp. which is the parent company of Fortress Investment Group is one of the biggest names in the crypto industry.

Apart from its renowned status, it is also the biggest crypto company in Asia.  After a huge loss of $130 million in 2017, the crypto giant is again going in the dark. According to the resources, the company has reported a loss of 12.5 billion dollars in march 2020.

Galaxy Digital

SoftBank is not the only one that is facing loss. Galaxy Digital is a cryptocurrency bank that is facing the biggest loss this year. In addition to the pandemic-related crisis. The company has also faced financial losses in the year 2019.

The company reported a loss of 32.9 million dollars in the fourth quarter of the year 2019. That was the fourth loss in that year alone. Soon after leaving the 2019 losses behind, the year 2020 hit every crypto company with the virus.

The crypto company has claimed that the losses have not affected the operations much and they have asked the employees to work from home. According to another report, the Galaxy Digital has laid off 15% of its employees, and that shows the corona storm has struck the company at a deeper level.

Is the Loss Faced by Crypto Banks Is Way More Than Traditional Banks?

Crypto banking is affected by many factors already let alone the pandemic. Some investors were hoping that degradation in traditional funding will raise the crypto industry. But these investors are now disappointed. Since crypto banking is also on the verge of losses.

This effect was also seen on the Bitcoin, the largest circulated cryptocurrency in the world. Although cryptocurrency prices are rising even during the global crisis, the growth is still juggling with the traditional banking system. The situation has reached a point where growth has become a topic of debate between the investors and observers.

The continuous spread of the virus has affected both traditional as well as crypto banking. Because it has disturbed the otherwise stable market that was working continuously before the pandemic.

According to the latest consumer data, digital currency can boom during this situation. Whenever there is a situation like this, customers tend to buy bitcoins quickly. This can create a hedge to the financial market.

What Is the Impact on Crypto Banking?

Digital currency businesses are quick to adopt changes. While the virus was spreading like a wildfire, crypto and blockchain companies went decentralized. Even the biggest companies became protective of their employees. According to a crypto bank named Sygnum, their main concern is the security of their employees and customers. After which they are going to plan according to the profit and loss scenario.

Other major crypto banks have reported that due to the decentralized operation the employees can focus on the customers in lockdown. Customer demands have increased since the pandemic began. Some companies have also launched new products during this period. This proves that this period has been profitable too for some crypto banks.

People are more geared towards digital usage because their movement is limited. Since everyone is focusing on digital transactions, cryptocurrency is being used as usual. According to BitPay, an increase of 11-40% is seen in the first quarter of 2020.

Customers are paying bitcoins for various purchases. The pandemic has also shown some positive effects on some tech companies. May crypto companies are trying new crypto products digitally. It can also be termed as the time when new digital finance experiments are on the cards.

For some of these companies, this strategy seems to be working on the bright side. While some companies are eventually shutting down their business. Overall, this situation is not completely profitable or loss.