What is a faucet?
Faucet is a reward system in the form of a website or app. The rewards at Bitcoin are spent in the form of a Satoshi, which is a hundredth of a millionth of a BTC, earmarked for visitors in exchange for a captcha or a task from the website.
There are also faucets that issue alternative cryptocurrencies. The Bitcoin Faucet was developed by Gavin Andresen in 2010.
The operation rewards are issued at various predetermined time intervals, as a reward for completing simple tasks such as captcha completion and as prizes from simple games, like the Bitcoin-Fidget-Spinner.
Faucets usually give fractions of a Bitcoin, but the amount typically varies according to the daily value of Bitcoin. The typical payout per transaction is less than 1,000 Satoshi, although some faucets have bigger rewards.
To reduce the mining fees, faucets usually save these small, individual payments in their own books, which then add up to make a larger payment, which is sent to a user’s Bitcoin address.
Since Bitcoin transactions are irreversible and there are many faucets, they have become targets for hackers who steal the bitcoins.
The primary purpose is to familiarize users with Bitcoin, and faucets are a great way to lead new people to Bitcoin or any other Altcoins.
Most faucets provide information to new users and offer them some free coins so they can “try before they buy” by experimenting with one or two test transactions before they bring in real money.
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.