I Randomly Chose a Cryptocurrency: CPUChain. This Is What I Discovered.
I Randomly Chose a Cryptocurrency: CPUChain. This Is What I Discovered.

By SkinnerCrypto | Magic and Lasers | 20 Feb 2020


So, I'm doing this exercise again because last time (VOLT Token) was really fun - albeit challenging. Today happens to be the 19th of February, so I went on down to my friendly neighborhood CryptoSlate and searched on page 19 of their coins - ranked by market cap. CPUChain caught my eye first, so I went with that one. Its current rank is 1906 - but that might of course change when you finally read this. Again, last time was a blast, and I did this because honestly, it gives me a shot to write something that few people overlap on. I think you'll be pleasantly surprised with this one.

Okay, So What is This CPUChain You speak Of?

First, CPUchain's motivation. Whitepaper Here.

So, we all know about Bitcoin. Grandaddy BTC. OG Blockchain. The Fruit of Satoshi's Loins. While his shit was revolutionary and brought in the Age of Crypto, it wasn't without its flaws. Now we can't blame old Nakamoto for this, sometimes our projects just go, and improvements are needed. Hence the Age of Altcoins. So, What are some of the big problems with Bitcoin?

1.) You Basically Need The Computing Power HAL 9000 And Accelerate Global Warming to Mine the Stuff Nowadays. Back in the Before Times, bitcoin could be mined with relatively reasonable hardware. As it got going, the difficulty of mining increased and we needed more and more processing power. It was simple at first. All you needed was a bank of GPUs and you were set. Slowly but surely, that became too much. WE NEEDED MORE HASHRATE! So, specially designed hardware called ASICs (Application Specific Inegrated Circuits) to give us more Whammy. The Bitcoin Gods were not so willing to give away Their Divine Booty (heh) and so it took an additional price; Energy. It has been estimated that globally, Bitcoin uses about SEVEN GIGAWATTS of power. Or in relative terms, it uses 1 Sweden of power. Holy Shit. That's a spicy meatball.

351665157-eb42305f71f8b3d30757e72a74aa690e6a18b1ddcae1196b9423b1c37e1fd714.jpeg

That's at Least, Six of These.

And its also not a meatball that your Tom, Dick or Harry-on-the-street can easily order. In other words, the tech and energy needed to mine BTC is a large barrier to entry. I mean hell, this guy here costs almost 1300 USD! It has an 1800 Watt power supply on it. Jeez. You need a second mortgage to run that shit. Lpp

2.) Bitcoin Is SLOOOOOOOW. The Bitcoin blockchain all on its own can process about 3 transactions a second. With respect to today's Altcoin tech, that's paltry. For example, TRON can process about 2000 transactions per second. Not bad. What does this mean though? It means that if you wanted to scale up Bitcoin, you're gonna need a bigger boat. To get around this problem, a recent innovation was the Lightning Network, which is another layer of technology that's placed on top of the Bitcoin Blockchain in order to get its dead ass moving. This has its own problems, which is better discussed in another post, but needless to say, BTC "outta the box" didn't have scalability in mind. That's a problem if you... I don't know, want to encourage mass adoption.

3.) ASSume the Position. We Got Some Fees For You. Another issue with Bitcoin is the fees. These are miner fees that go to the boys for helping to confirm your transactions, in so many words. It's an incentive, and it can be anywhere from 20 cents to 40 cents or more. That doesn't seem like a lot, but look at it this way. If you sent a dollar of BTC to your favorite Lady of The Night for "services rendered" (I'm sure this has already happened somewhere) you gotta pay a little extra to get that transaction on the network. That adds up over time, and a lot of people don't like it.

So, CPUChain, Whatcha Gonna Do About It?

So, The first thing you need to know about CPUChain is that it uses PoW (Proof of Work) protocol like bitcoin. They use what is called the CPUPower Algorithm to solve the problems good ol' fashioned BTC runs into. Now in order to get this right, I gotta say these are the claims of CPUchain. For example, they claim through their tech that they could get about 80,000 transactions per second. Wow. That's more than Visa. IF this pans out for them, they are looking at serious capability. Additionally, they want transactions to be confirmed and finalized within one minute. That would be pretty bad ass.

In order to get around the whole "barriers to entry for the common folk" and "Destroying the environment", the made their coin capable of being mined with a good ol' fashioned CPU, and made the mining process ASIC resistant. These aren't really new things, but it is interesting. Also, with its CPU mining capabilities, you can use your phone, your home computer, your office computer (if you're not Folding@home for some sweet BANANO), and even your mom's computer. That's pretty neat, and while I don't necessarily think it can increase adoption on its own, it is still interesting to think that damn near anybody can mine CPUChain? They have a wallet, mining pools, and pretty much the same stuff BTC has, minus the problems (if we believe their claims). Oh, did I mention even lower fees?

Now if you're relatively underwhelmed, I understand. There are probably eighty different people who can name a more successful coin that has all of these features. I can name a few right now. Hell, Most of the are PoS in my opinion. However, one thing I do appreciate, and can be considered pretty unique nowadays is that they had no ICO. No Pre-Mining or coin allocation for the founders. It is 100% PoW mining, from the genesis block to the last. I could get behind that.

FINANCIALS!

CPUchain had scarcity in mind when they started. Their total coin supply is 105 million, which is larger than BTC. However, they do have a similar halving schedule for mining rewards, with a block time of 60 seconds. Take it as you will, but I think that they could be trying to emulate Stock to Flow in the same vein as Bitcoin. If they are and they are successful, they could see increased valuation. But I'm not too sure that's the case.

First thing's first; COMPETITION. Besides their coin ethics, what makes CPUchain really stand out? I can't say a whole lot. Their market cap is pretty low right now, and the price is definitely puts it in the sub-cent speculator range. The whitepaper was legible and well designed, but had really obvious spelling errors (I know, I do too. Shut up). This isn't a big deal really if the tech pans out, but it does... stand out. And that's not what I was talking about when I originally said "stand out".

Besides the "anybody can mine" feature, I don't really see it standing out. Their exchange adoption is limited, and they have a lot of work ahead of them if they're gonna make waves. This ain't financial advice, but I don't think it's worth it. The tech is kinda interesting, but use case is lacking, besides "currency". I'm ready and willing to be proved wrong.

I think this was a fun and quick recap of CPUchain, and admittedly it is shorter than VOLT. I thank you all SO SO much for reading. If you liked this, please consider working away at some of my other blog posts. You just might like them too.

Until next time, watch the markets and remember: not all Alts are created equal.


SkinnerCrypto
SkinnerCrypto

I'm a futurist, cryptocurrency enthusiast, techie, artist and aspiring land surveyor. I like to solve problems. I have some ideas for a planned community.


Magic and Lasers
Magic and Lasers

This blog is dedicated to the talk of Cryptocurrency topics, Futurism, Technology, and scifi/Fantasy.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.