ChessCoin – A Cryptocurrency for Gamers
ChessCoin is a Cryptocurrency. Back in the noughties, Google was able to establish itself as the number one search engine, Yahoo and MSN were considered the best platforms for communication and Facebook was still in its early stages.
People had the opportunity to use different chat rooms or to play free games like backgammon or chess. These free services are currently disappearing from the market as Facebook and Skype turn the entire market upside down.
With the introduction of ChessCoin, the aim is to slow down this development and allow users the chance to monetize their skills. In addition, the money is kept safe and cumbersome transaction fees, such as those via Paypal or other payment methods, are waived.
What is ChessCoin?
The ChessCoin token was created in 2016 and uses a proof-of-stake (PoS) algorithm to create new blocks. The PoS algorithm is gaining popularity among users and programmers as the amount of work required to create new blocks can be massively reduced.
In addition, the proof-of-stake algorithm is considered a more environmentally friendly method because the energy used to verify transactions is lower than with other methods. Here, the miners are not in competition with each other, rather the algorithm selects a miner, who then performs the verification of the block.
On January 5, 2018, the developers announced the creation of over 60 million coins. This is an impressive number and should highlight the seriousness of the project. Furthermore, several tournaments have already been organized in which the players had the chance to win additional ChessCoins.
For each game won, a small reward was distributed, and for winning the entire tournament, a prize of 15,000 tokens was awarded.
What Special Features Does the ChessCoin Offer?
ChessCoin is a decentralized currency that can operate without government regulations. This means that the use of banks or governments to control the money supply is bypassed and instead the market, by means of supply and demand, determines the development of the token amount.
The currency is based on the Scrypt algorithm, which is a hybrid mix of the PoS algorithm and the proof-of-work (PoW) algorithm. It should be noted, however, that the use of the PoW algorithm is not pursued and had already ended before the official launch of the currency. Thus, the currency can be classified as a pure PoS currency. The annual staking rate is 32%.
Many tokens in the market are experiencing a high degree of token dilution due to a high staking rate. This is due to a high inflation. According to the developers, these tokens offer no added value through the use of blockchain technology, so only the transfer of funds can be cited.
As a result of this development, there is often a large depreciation and the market subsequently calls these tokens scams. ChessCoin also has a high staking rate, but the value of the currency should not suffer from a sharp drop in prices, as the developers are constantly improving the blockchain. The currency is constantly being optimized and extended with additional features.
What is the Developers’ Vision for ChessCoin?
The ChessCoin token is designed to create the most popular digital currency for online gaming. In this case, the applicability should not be dependent on the existing operating system, so that suitable wallets for Windows, Linux, and Macintosh are made available.
Particularly in the context of online games, the developers see a great need for security, because the risk of fraud and manipulation is higher than in other sectors. In order to avoid this, a special focus is placed on increasing safety. Manipulation by third parties and 51% attacks is almost impossible.
In addition, the speed of transactions plays a particularly important role for the developers, as online games depend on immediate payments. These can be achieved by means of the underlying block time.
What is the Current Market Capitalization of ChessCoin?
The ChessCoin token was added to official trading on the crypto markets on July 3, 2016. The token’s issue price was $0.000672, resulting in an initial market capitalization of $32,526. Initially, the token count was increased by the PoW algorithm, causing the currency to lose a lot of value.
As a result, market capitalization at the end of December 2016 was $4,151 and the price per token was only $0.0000009.
Since February 2017, the currency had a sustained upward trend, so that on 1 November 2017, the mark of $100,000 USD in market capitalization was broken for the first time. New record highs were marked daily until December 9, ending the year with a market capitalization of $633,253.
After a brief consolidation, this trend resumed on December 28th. On January 6, it reached a record high with a market capitalization of $1.09 million. In addition, the price per token was $0.02. Meanwhile, the currency consolidated again but found support at $800,000, so a new outbreak is quite possible.
Which Trading Venues are Important in the Daily Trading of ChessCoin?
The ChessCoin token has a daily trading volume of approximately $3,500. This is possible due to an available token amount of 54 million. Investors should be aware that the amount of tokens is subject 32% inflation per year and, therefore, no limit on the number of tokens has been set. This could lead to a dilution of investments in the long run.
Cryptopia and YoBit were able to establish themselves as particularly important trading centres. In particular, Cryptopia accounts for 95% of daily trading. Here, the trade between Bitcoin and ChessCoin takes the supporting role. Other tokens cannot be traded at this time.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.