Introduction on the Onix Coin
Onix Coin is a cryptocurrency. In the crypto market, it is well known that Bitcoin is the market’s key currency and boasts the highest market capitalization. The general acceptance of the token is also very high.
However, many experts believe that the currency can only be considered a beta version of blockchain technology and suffers from excessively rapid growth and many imperfections that will hinder sustainable growth.
In addition, it was designed with a mining algorithm that has helped centralize mining in favour of large mining farms with appropriate hardware. This negatively affects the actual mission of decentralization. In addition, the available computing power is limited, so that an infinite number of transaction verification tasks cannot be completed.
This leads to a limited number of transactions in the blocks as well as decreasing mining profitability, which could cause the blockchain to collapse in the future.
According to experts, the verification of transactions in a few years will no longer be profitable enough, so as a direct response, the computing power is deducted. It is also not certain whether once the token amount has been exhausted, the reward will be sufficient to bind miners to the blockchain.
This could lead to the deduction of the nodes and thus, to a transaction jam, which could paralyze the entire network.
What is the ONIX Coin?
The ONIX project serves to establish the ONIX Coin (ONX) and the values of the entire community on the market. The basis of the token is the Bitcoin blockchain, which has been modified so that the business model of the developers can be implemented.
At the moment, the ONIX Coin is based on a proof-of-work (PoW) algorithm. This is a system designed to prevent unwanted behaviour within the blockchain. The basis for avoiding system errors is the solution of tasks, which at the same time also incurs costs.
The normal scope of work is to solve a mathematical formula so that transactions are verified and erroneous transactions that can cause damage to the blockchain are excluded.
There is some asymmetry in the way this works because the work has to provide a certain amount of difficulty, but it must also be simple enough for enough people to do it. This process also creates new coins.
After the transactions have been verified, they will be executed immediately. However, this also means that an intermediary in the form of a bank or similar institution is not required for execution.
The Technical Specifications of the ONIX Coin
To encrypt transactions, the X11 algorithm is used. This is used in the context of many blockchains, as it is particularly well suited for hashing the blocks. This can be efficiently managed by CPUs and GPUs, resulting in a fair and equal distribution of the tokens.
This approach also ensures that CPUs work as efficiently as GPUs and that no user can gain an advantage. However, the GPUs use about 30% less energy to do the same work and also emit about 50% less waste heat than when using the Scrypt algorithm.
To create a standard level of difficulty in mining, the Dark Gravity Wave algorithm is used. This is probably the most commonly used algorithm for calculating the difficulty and equalizing the weaknesses of the Bitcoin algorithm.
Furthermore, ONIX does not halve its mining earnings. This is one of the core features of Bitcoin that means when a defined number of blocks is reached, the reward paid is halved. This was intended to control the issuance and inflation of a cryptocurrency. ONIX does not pursue this principle and instead relies on a continuous reward set at 60 ONX.
What Advantages Does the ONIX Coin Offer?
According to the developers, the ONIX Coin offers many advantages compared to Bitcoin. In particular, the distribution of credit is one of the core competencies of the blockchain, because the payments can be made in different ways.
Users can receive the loan through the affiliate network or through one of the many debit and credit cards. An exchange of Bitcoin or fiat currencies is also possible. This loan can subsequently be used for investments, work or consumption without any direct impact on savings. The resulting interest must be redeemed in ONX so that payment comes as a result of mining.
The right to a loan is granted to every active user on the network. In order to ensure a good allocation of loans, the payment behaviour of the users is analyzed. This analysis influences future lending and interest rates, so users should pay particular attention to positive behaviour.
To become a member of this system, you must register. In addition to the usual account data, personal data must be disclosed so that the credit risk on defaults can be minimized. In return, users have the opportunity to access innovative financial products, which were designed and realized by emerging fintech.
The Evolution of ONIX’s Market Capitalization
ONX’s first placement was on June 25, 2017, at an issue price of $0.001182 per token. This resulted in an initial market capitalization of $886, which should increase rapidly. From October 2017, a veritable rally began but already ended on November 29 at a high of 13.8 million US dollars. The price per token also rose to 0.50 US dollars.
Subsequently, a sustained consolidation set in, although other tokens in the market benefited from a generally good situation. At the beginning of 2018, a market capitalization of one million US dollars was undercut, so the currency must now generate a new buy signal before an entry can take place.
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.