Luxcoin was created in 2017 by an anonymous group of developer and programmers and takes its name from the Greek word for light. And now, this new cryptocurrency aims to shine a light on the insiders that have been monopolizing the Blockchain.
Driven by the fear of their new cryptocurrency falling into the hands of the wrong people, Lux decided to not proceed with an ICO (Initial Coin Offering) to help finalize their project. Instead, they financed it by “pre-mining” and managed to obtain about 5% of the 6 million tokens made available on Cryptopia. Now, Lux is trading at around $25 and seems to be a good investment opportunity given its unique properties.
Luxcore.io, the group behind the cryptocurrency’s creation plans to build confidence and trust in the Blockchain community. The aim is to restore trust between individual investors, companies and governments. To achieve this, they’ve set three goals for themselves.
First, they plan to take back Blockchain from the business world by making massive investments in mining cryptocurrencies, which, in turns, makes them less profitable.
Next, they plan to offer a Parallel Master node Network or PMN; a two-tiered encryption network dedicated to trusted institutions, such as big banks, corporations and governments. Also, the PMN would be able to work with and communicate with the rest of the Blockchain.
Their third and final goal is to give individuals the ability privately navigate the Blockchain.
Lux seems to be using a recipe that they learned from their predecessors.
Not only Bitcoin’s Blockchain but also Ethereum’s “smart contracts” and Ark’s “Blockchain SmartBridges” have all become tools that Lux plans to use to achieve their success.
Lux: The Friendly Cryptocurrency
Lux is an anti-capitalist cryptocurrency and is based on an algorithm known as PHI1612. The algorithm is also GPU friendly and ASIC resistant, which means that it cannot mined by the expensive devices that are used for mining Bitcoin, which is based on a different algorithm known as SHA256.
Lux’s algorithm aims to prevent the concentration of their coins in the hands of any small groups of investors, nodes or devices dedicated to mining and regulating the network.
On the other hand, Luxcore wants to democratize the mining of their currency by encouraging smaller mining units that are made up of only a few graphics cards. Moreover, the algorithm presents one of the highest profit margins yet, the most computing power possible, all at the same time as reducing the energy needed for mining to about 10%.
And, to top it all off, PHI1216 even aims to offer instant transactions between its users which would blow the competition out of the water.
The Technical Details
Cryptocurrencies are virtual tokens that are obtained by resolving a task to ensure the proper functioning of the network dedicating to its circulation. Any device that connects to the cryptocurrency’s Blockchain is called a “Node” and has two possible roles to play:
- The device will either use its computing power to solve a problem posed by the algorithm, usually to validate transactions between users. And, in doing so, they become a “miner”.
- Or, the device can be used to buy, sell and store virtual tokens.
Either way, these connected devices are what maintain the circulation of a cryptocurrency within the Blockchain and is paid in fractions of tokens for their involvement.
Miners are paid based on a POW or Proof of Work. On the other hand, the second type of node is paid based on the size of their cryptocurrency reserve. The longer they keep their tokens, the more they will be paid. This type of payment is based on what is known as a POS or Proof of Staking. Lux, however, plans to provide compensation based on a single fixed price.
Among other perks, Lux also offers its miners the opportunity to earn up to 10 Lux tokens for the resolution of a single block or task, and 10 Lux tokens for validation tasks during transactions. For stackers who accumulate cryptocurrency, Lux offers 100% compensation for the first 100,000 tokens and then a 50% return on every token kept longer than 36 hours.
To ensure that its network functions properly, Luxcore relies on what is known as Masternodes. These are computers that stay connected to each 24/7 and have at least 16,120 Lux tokens in their portfolio. Master nodes are used to instantly validate transactions based on their proximity to a transaction.
A Safer Cryptocurrency
In terms of security, one can’t help but compare Lux to Tor, a free software application that allows for anonymous communication. However, unlike Tor, Lux proposes a Blockchain that is open to both public and private navigation.
Lux uses two separate encryption protocols on two different networks that communicate with each other by using portals that are called LuxGates. The use of a dual network is an evolution of the SmartBridge technology created by Ark.
Lux’s private network is called a PMN, or Parallel Master Node Network and encryption that are known as i2pd (Invisible Internet Project) and SAM (Simple Anonymous Messaging). The i2pd protocol is widely recognized as an anti-censorship measure and is often used by peer-to-peer networks such as BitTorrent. However, these networks are not accessible to everyone. Only authorized companies, institutions and governments will have access. Then, authorized structures will be offered software called Luxecore, which is a much faster, safer and cheaper alternative to the traditionally used Swift network.
The public network only uses a single layer of the i2pd protocol and offers transactions made directly from its portfolio, without having to go through Forex. This has sparked a lot of interest in the latest security tool developed by Luxcore.io: multiple signature transactions.
This new tool consists of an end-to-end encryption, where both parties encrypt their portfolio address, a single-ended encryption and a one-two encryption for all co-managed portfolios.
It is important to note that by preferring to trade on Forex, rather than Lux, you will lose your POS (Proof of Stacking).
A Potential Gold Mine
With a price of $17 per unit, Luxcoin is still very affordable when compared to its predicted value. For those who prefer mining the currency, the PHI1216 algorithm is now fully supported by SGminer.
If Lux’s unique characteristics determined its value, it would far exceed the price of any preferred cryptocurrencies that are currently available on the market.
In addition, Lux’s network of parallel Masternodes ensures that it will eventually prove itself to be trustworthy to banks and government, which will guarantee that it will have a bright future.
In the coming years, Lux could possibly become the mechanism through which governments and banks are able to better interact with the rest of the world.
The Wake-Up Call
It is now clear that Lux has everything that it takes to become a promising cryptocurrency. However, we still do not know how its technological details will affect its value or the effects it could have on the entire Blockchain.
With their PMN, Lux would also be the first to offer a partnership deal to an institution who was the enemy at one point.
Now, even the slightest rumors of collusion could have detrimental effects on the value of the Luxcoin.
The ambitious structure of the Lux project is still under construction as can be evidenced by the current state of their website. There are functions that were proposed but have yet to be implemented for use.