Vertcoin cryptocurrency was launched on 11/01/2014. No one raised funds for its creation, there was no ICO, and no pre-mine – only three blocks were mined before the official launch to check the network ‘s performance. Blocks on the platform are generated every 2.5 minutes, with a wages of 25 VTC. All funds for visualize development have been received through charitable contributions. The team entered into a partnership with Litecoin, and as a leave the Lightning Network engineering was added in 2017. late, the developers began to test nuclear swaps with LTC. Vertcoin uses a alike algorithm to Litecoin – Scrypt – but with some changes. The main have is based on the rationalization of RAM with protection through the Lyra2RE algorithm, which provides a unplayful flush of security against attacks. Despite this, hackers tried to capture more than 51 % of the hashrate using a botnet in 2015. As a result, the ship’s company lost more than $ 100,000, forcing the VTC team to implement the algorithm Lyra2REv2 and Lyra2REv3 with an improved security system system to protect Vertcoin from foster attacks.
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How does Vertcoin work?
When Bitcoin appeared in 2009, only a small group of people were involved in the mining procedure. At that time, anyone could get BTC using a personal computer, but since then stallion mine rigs have begun to appear, displacing ordinary users. The mine process on personal computer became unprofitable. A fresh technology called “ ASIC miners ”, working with the SHA-256 ( Bitcoin ) algorithm, was created in 2013. Later, ASICs started to be used for mining on the Scrypt and got more profit than GPU and CPU miners. Vertcoin arrived in 2014 to try to solve this problem. The keystone tax of the caller is simple – the developers wanted to make VTC mine with the ASICs impossible, or at least identical expensive. If person evening designs an ASIC-miner for Vertcoin, it very quickly becomes useless and unprofitable. Such a technical decision makes the network more decentralized. Of course, it can not be said that centralized mine using CPUs or GPUs is now impossible, but the network becomes more fasten with enforce solutions, and ordinary users can distillery mine VTC with good net income .
The Scrypt mining algorithm, besides used in Litecoin, has been implemented in VTC with some modifications : LTC mining requires 1 Mb per channel, whereas in VTC 2 Mb per channel was required at the get down, and after that the value doubles every few years. The key job of Scrypt is to complicate the block genesis process by increasing the resource requirements used for computing operations. The key difference that makes it more unmanageable to monopolize mine is that the RAM is more demanding and the power consumption requirements are lower than in the case of SHA-256. The block coevals speed in a Scrypt-based blockchain is approximately 30 seconds and difficulties are recalculated every 240 blocks. however, as we already know, ASIC miners were invented to work with the Scrypt algorithm and the interest in VTC grew in 2014. The mine process has become more complicate for miners using CPUs or GPUs.
The developers of the project continued to adhere to their ideas of decentralization of mining and integrated a new Lyra2RE algorithm. This requires humble processing power and energy resources, and besides provides high-speed data action, improved flat of data security, and extra ASICs resistance. It has been developed for both GPU and CPU mining. Lyra is a password system that uses a cryptanalytic algorithm to decode specific sequences. This technical solution has two main tasks : first, to provide extra security against ASICs mine. This is necessary because control condition over the network and its processes must not fall into the hands of attackers, and net users must be certain that mining will not become centralize. second, this solution gives the opportunity for ordinary users to mine VTC cryptocurrency with good profit. Anyone can get rewards without expensive mining rigs or consuming a lot of electricity. If person creates an ASIC for Vertcoin mine, developers can make a branch on the network to increase the memory requirements and thus make mining by ASICs useless and unprofitable. Such an overture gives increase matter to to a digital coin, provides users a desire to participate in the democratic system development, and allows the organization to remain decentralized.
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