Nov 25 / 2019
Latest News / Blockchain news/ Crypto
katy micallef
Posted by: Katy Micallef

A glance through Prizm

Prizm is the only concept that offers blockchain on one side and coin generation on the other

Today the cryptocurrency boom is capturing an increasing number of investors. Conceptually all cryptocurrencies are the same, but is this technologically true? Firstly you need to understand what cryptocurrency is – this is information about changes in balances on user wallets stored in the distributed blockchain registry.

By Nikolai Sereberennikov, Financial Consultant CWT.

Here’s what investors should pay attention to:

This cryptocurrency ownership is direct access to the encrypted blockchain database, directly without intermediaries in the form of services that provide two-factor authentication and / or remote generation of private keys. You can consider yourself the owner of a cryptocurrency only if you personally contact blockchain without intermediaries, if this is not the case, then the safety of assets is transferred to services and exchanges, this is an additional risk that must be taken into account.

sigma igaming A glance through Prizm
Nikolai Sereberennikov, Financial Consultant CWT.

Let’s talk about the fairness of the distribution of coins that many coins declare – decentralization. If coin mining parameters are possible, those who have concentrated mining capacities win, a technological centre of production is being formed, as has happened with bitcoin. In order to generate a new coin in any cryptocurrency, such as when mining bitcoin for example, you need to pick up pairs of primes thanks to which a block is generated, i.e. if you generated a new block in the blockchain, then the genesis block gives you coins, sending them to your address.

As with all cryptocurrencies, in order to generate a new coin, you need to support the network. Maintaining the network is mining, forging and does not matter to be honest. They are not miners engaged in mining bitcoins as most imagine, but instead generate blocks on the blockchain and get rewarded in the form of satoshi for this. In Bitcoin, the genesis of the block spells out how many bitcoins it should give per block and in what period of time. Depending on the complexity, it will give bitcoins. The same thing occurs with all cryptocurrencies.

This single concept leads to centralization. Because at the initial stage there are a lot of miners, since it is easy to mine, it is easy to generate blocks and to maintain a network. Accordingly, anyone can mine, there are many miners and because of the large number of them they keep the network secure. This is the case with both the POW concept and the POS concept. At POW, if the complexity of the network increases, then more powerful equipment is needed in which you need to invest a lot of money to generate new blockchain blocks, accordingly, competition decreases, since in order to create blocks you need a lot of hardware. The same goes for the classic POS concept. To generate new blocks you need to have coins. The more coins you have, the more blocks you forge and the more blocks you forge, the more coins you are given.

Accordingly, you become stronger and stronger. It becomes harder to compete. And if you do not sell your coins to anyone, the result is that you are concentrating the entire network on yourself. And because of this, all blockchain networks that work on this principle strive to shift from decentralization to centralization. So, the more processing power for POW or the more coins on POS, all these systems tend towards centralization or control this system.

In Prizm everything is fundamentally different: the issue of coins is not related to the generation of blocks in the blockchain. In fact, forgers are enthusiasts who maintain the network in a healthy state and do not generate new coins. They simply receive a fixed commission from transactions that were recorded in the block they created. And the generation of coins is made to all users at the same time and this just leads to even greater decentralization. It is impossible to accumulate coins in one place with a margin of 50%. The larger the network of users grows, the more it spreads.
There are more users and the genesis needs to generate new coins for more addresses. To get more coins from the genesis, users are forced not only to collect coins at home, but also to distribute them to their followers, popularizing the system and leading it to even greater decentralization.

The Prizm is conceptually completely different and those who understand this say: “How could you manage to make it? ” The generation of coins is done for storage, regardless of whether you create new blocks or not. Coins are generated on the existing balance, there are no analogues in the world of cryptocurrencies yet. Cryptocurrencies, not to be confused with a huge number of ”hyped” systems posing as cryptos.

The function of generating new coins would be divided, with the function of generating new blocks and maintaining the operability of the blockchain network on one side. Prizm is the only concept that offers blockchain on one side and coin generation is the other side – all this is combined into one 100% decentralized cryptocurrency. This great advantage allows us to maintain the original concept of an open, transparent blockchain, controlled by a huge number of users of the tool.

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