Category Archives: Feathercoin

What is Ecoin Mining

bitcoin-mining-rigMining Bitcoins can be compared to mining minerals like gold, copper silver etc.  The way you mine gold is my digging in the ground, looking for something shiny, then testing to make sure that it is gold.  When you mine Ecoins, your shovel is a computer doing math and your testing kit is all the other computers on the Ecoin peer to peer network.  Instead of digging in the dirt to find something that looks like a Ecoin, your computer tries to solve a difficult math problem.  The math problem that has many correct answers, but not an infinite number of answers.

Since there is a finite number of correct answers to the math problem, as Ecoins are discovered there are less to find.

Mining computers requires a great deal of computing horsepower.  If you do not have a powerful computer and a cost effective power supply, you will not be able to mine Ecoins.  Unfortunately, this describes most of the people living in the world.

101201privacyreport_ES1Part of the discourse around the pros and cons of Ecoins is that they can be easily used to launder illegal funds or purchase illegal goods.  If anonymity and secrecy are good for crime, Ecoins are bad for crime.   Buying with Ecoins is like buying with cash.  Like cash, the identity of the buyer and seller are anonymous to one another and everyone else.  However, the payment network that processes Ecoin transactions is complete transparent.  Anyone in the world can look up the exact path of every Ecoin transaction of all time.  This information is stored in the block chain.

blockchain2

The block chain is the perfect genealogy of every Ecoin.  If people are still using Bitcoins in a million years, the Block chain will still be able to track every transaction back to the original Ecoin mining event.  While the block chain increases at an amazing rate, the data is well organized and therefore easy to query.  It is relatively simple to identify suspicious patterns and once one illegal actor is identified, it is easy to track the flow of currency every step of the way out.

Ecoins offer criminals no secrecy and only a a trivial amount of anonymity.  Every Ecoin transaction requires a computer or internet device to have a unique (anonymous) identity on the Ecoin peer to peer network.  While your identify on the network is anonymous, it is unique.  Almost all web devices are identifiable by location or owner.  Criminals get almost no anonymity and no secrecy when they transact criminal activities using Ecoin.   The real anonymity of Ecoins is the anonymity the consumer gets from the seller, marketers, credit card processors etc.  It is not the type of anonymity that protects or hides illegal activities. For the most part, law enforcement seems to be embracing the Ecoin movement, perhaps in part because it may make their jobs easier.

Get Bitcoins Now from Ecoinclub

Bitcoin Congress Hearing

Nov 2013 Senate hearing described as a ‘Bitcoin lovefest’

Watch the November 2013 Congressional hearing about Bitcoins

 

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feathercoin

Feathercoin is built on Bitcoin’s open source software. One of Feathercoins’s biggest advantages is the software that it uses to find coins.  The software that feathercoin uses is only good on GPU mining computers (basically programmable computers like the one you are using now).  Bitcoins can be mined using specialized hardware designed ONLY for mining Bitcoins.  Hence, bitcoin mining is dominated by high end mining hardware.   Feathercoin is safe guarded from the effects of expensive machines dominating mining. Feathercoins  also have additional protections against hostile takeovers of the peer to peer mining network.

Interesting things we noticed about Feathercoins

As of 11/2013 many popular markets tie Feathercoin (FTC) value directly to BTC value.  You can only trade BTC for FTC or FTC for BTC (no cash transactions).  In an appreciating market, FTC has the ability to appreciate twice in effect, once when BTC goes higher in value and a 2nd time when FTC appreciates vs. BTC.  Of course in an depreciating market it also has the potential to depreaciate twice as well,  For example during a recent 24 hour period, FTC was up as much as 50% vs. BTC, from a trading value of .00052 BTC to a value of .00078 BTC.   At these numbers, BTC converted to FTC at .00052 would go up in value 81% whereas BTC not converted into FTC would have appreciated 31%.