What is BitcoinDark?
A Beginner´s Guide to Buying, Selling, Using, and Mining BitcoinDark:
An In-Depth BitcoinDark Guide by Black Chip Poker
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Following the global financial crisis, BitcoinDark was introduced so people could transact freely and privately, and without added costs from the market chain. The cryptocurrency came up with a complete financial system on its own. It seeks to address some of the disadvantages of the current global financial sector.
What is BitcoinDark BTCD?
BTCD is like every other cryptocurrencies. However, it differs mainly because it integrates a decentralized exchange. InstantDex enables users to trade with the coin immediately. This gives BTCD an edge right from the start unlike other cryptocurrencies that have to seek exchanges after launch. InstantDex provides a direct means of trading BTCD with other digital assets, commodities and altcoins.
The platform also has a decentralised Pegged Asset Exchange (PAX) that enables users to buy and sell pegged assets. These assets include major currencies like USD, EUR or CNY; commodities like gold, silver and copper; ETFs and stocks. PAX is decentralized. It has no single point of failure to be shut down by governments or other third parties.
Like some cryptocurrencies, BTCD is big with anonymity. It has embedded privacy features that allow users to trade and send payments without revealing their identities. Its team of developers is also anonymous. However, unlike Bitcoin, BTCD is built on a Proof of Stake (PoS) system.
How do I buy Bitcoin Dark?
BTCD is available on major cryptocurrency exchanges: Bittrex, Poloniex, Bleutrade and Cryptopia. Bitcoin has to be traded mainly for BTCD because of its early stages of development and adoption. BTCD’s other pairs are with Monero, Litecoin and Dogecoin. Cash or credit cards cannot be used.
Interested users need to create an account on any of these platforms, get Bitcoin and place an order for BTCD at a chosen price. After the purchase, the BTCD could be withdrawn to a downloadable client wallet which is available on Windows and Mac OS. Transactions can be checked with the ExploreBTCD.info.
How do I turn Bitcoin Dark into cash?
BTCD is predominantly traded for Bitcoin on the exchanges mentioned above. Bitcoin can be exchanged for cash or to other cryptocurrencies. BTCD and the other currencies it pairs with cannot be easily exchanged for cash.
In other words, to turn BTCD to cash, it has to be first traded for Bitcoin. Afterward, it could be sold and liquidated into cash to be withdrawn through the banks. Cashing out through automated teller machines is also possible. This is usually through the use of Bitcoin-backed debit cards issued by crypto startups.
BTCD is now also being swapped for Komodo tokens (see more details below). The Komodo platform focuses on providing complete end-to-end blockchain solutions for developers of any level and any industry.
How to use Bitcoin Dark?
The BTCD developers bank on four features and ideals. These features are encapsulated by the D.A.R.K acronym. They are:
Decentralisation: Built on a secure PoS system, BTCD was designed to be resistant to attack from centralisation. This is based on the developers’ view that only truly decentralised systems can be owned by their users. The developers cite the growing centralization of cryptocurrencies — including bitcoin — and their reliance on Proof-of-Work mining as major factors for coming up with BTCD. Their platform is meant to be free from interference from vested interests and hostile authorities.
Anonymity: The BTCD platform is privacy-laden. Its developers recognise that freedom of speech and privacy — financial or otherwise—are key to an open society. They believe such ideals require anonymous communication though some people may choose to abuse it.
Realtime exchange: BTCD enables near-realtime trading of currencies, commodities and assets with its integrated decentralised InstantDEX exchange.
Key currencies: BTCD will enable users to ‘lock’ funds against real-world currencies, commodities and stock indices, to redeem them later. This is to address the volatility that rocks most cryptocurrencies. Users can trade and manage their accounts and investments outside the existing financial system.
InstantDEX, PAX and BTCD are storable on a personal computer for a user to easily access without a middleman.
BTCD is also considered the only coin that pays dividends for staking and continues to have a positive effect on network strength. The revenue generated by the platform is distributed to stakers as a reward for protecting and maintaining the network. Anyone can buy BTCD and run the client. Revenues are periodically paid out in BTCD, with revenue streams generated by SuperNET and a wide range of other businesses and initiatives.
What is BTCD mining?
As a PoS cryptocurrency, BTCD is mineable. It allows owners of older generation ASIC miners to use their rigs again. Its major mining pools include btcd.xpool.ca.
How to mine BTCD?
Its PoS mining system makes it relatively more profitable to be mined than the likes of Bitcoin. It presently has a market cap of over $406 million as at January 13). Total number of coins in circulation according to CoinMarketCap is about 1.3 million. 1.5% of the coin has been premined to be used for development purposes.
How will BTCD scale?
BTCD’s developers recently jumped ship to Komodo.
Described as the new standard of cryptocurrency, Komodo uses Zcash zero knowledge proofs which has been touted to be the best privacy technology available. It uses the Bitcoin hashrate to secure weaker chains. As a result of the upgrade, Komodo is dubbed BTCD 2.0.
It also adds a new consensus method called delayed Proof of Work (dPoW). dPoW combines a NXT-style PoS with Bitcoin’s PoW using notary nodes selected by Komodo stakeholders. It is similar to how Bitshares and Steemit select witness nodes.
After the swap has been completed, the big stack of BTCD will be burnt at a date decided upon by the BTCD community. Afterwards, the platform’s chain could grind to a halt.