Development Blog

Blockchain transactions vs Credit card transactions [Medium]

Often you will find a number of comparative analysis between Visa and Mastercard’s transaction throughput vs. blockchain’s throughput in unit of transactions per second.

You can search for the information about the average size of credit card transactions; about 500 bytes in average and its throughput; 5,000 transactions per second.

What these figures translate to in terms of blockchain (example: QWC) is like this,

5,000 txs per second x 60 seconds per minute x 2 minute per block. This translates to 5,000 x 60 x 2 = 600,000 transactions per block.

The size of each block has to be close to 300 Mb per block.(600,000 transactions per block x 500 bytes per transaction)

The current block size of QWC is 1Mb and it can hold up to about 1,000 transactions per block. If you look at it this way, the blockchain’s performance seems really slow. The more decentralized a blockchain is, the slower its performance can be.

However, it is not the case and I would like to propose a counter-argument for this kind of analysis.

For credit card transactions, the assets are not really moving. It is the credit that is given to users and the balance is charged to users on a monthly basis. So the actual transactions of assets from bank accounts to credit card company’s accounts take place based on contractual billing cycle, which is normally once a month per account.

The credit card throughput is so called authorizations. Not transactions. The balance information is stored in a centralized database and is the summation of all balances within the billing cycle.

What operates like credit card systems in crypto space are exchanges. You make a deposit for credits and issue authorizations for both inputs and outputs in the database. After a certain trading cycle is finalized, you transfer the coins(or assets) to your wallet(s) using a secure transaction. The throughput of major exchanges can be well over 1 million authorizations per second.

On the contrary, when you send coins over a blockchain through your wallet, various transactions in the blockchain are stored in memory pool until they are included in blocks and they are irreversible transactions (meaning you cannot cancel transactions once it is broadcast in the network) even though it is not yet included in the blocks and the balance is deducted immediately. So each transaction is equivalent to a transfer of an asset on blockchains that can guarantee that your transactions will be included in future blocks.

The more appropriate comparison of transaction throughput of blockchains will be that of banks. As we all know, there are many restrictions in banking systems and when you have to move large amount of assets or make cross-boarder payments, it will take a long time and sometime requires some documentation because they are movements of assets, unlike credit card transactions.

Do you still think blockchains have to handle a larger number of transactions faster than credit cards? In my opinion, the answer is no. Exchanges should take care of that part as it also provides monetary liquidity to its users.

Qwertycoin: The barrier breaking privacy coin no one knows about yet

As a developer, my eyes tend to glaze over when I hear about the next big cryptocurrency that is “going to be bigger than Bitcoin.” Altcoins have had a terrible 2019, and it could only get worse. On top of that, the crypto world is full of scams, pyramid schemes, and vaporware. A new coin can pop up overnight and appear well funded and well promoted to the casual observer, only to have the core team cash out all their coin, leaving it worthless to retail investors or crypto hobbyists — ask just about anyone who bought into an ICO in 2018.

So then, given my prudish attitude toward altcoins, how did I stumble upon a project with honest potential? In March 2019, Monero hard forked and turned Bitmain’s Antminer X3 into the world’s most expensive space heater. I’d been curious about crypto mining for a while, and the market seemed to be coming back, so I checked CryptUnit and saw that an X3 could still earn between 1 and 2 dollars a day mining something called QwertyCoin (QWC). Whats’s more, QWC supports merged mining, so you can mine other coins at the same time as long as that coin uses the same algorithm as QWC. Merged mining is a sign of an active, skilled dev team, and QWC was initially built using a framework called CryptoNote, so there are a large handful of other coins with the same algorithm which also support merged mining.

I picked up an X3 for a couple hundred bucks on eBay and after about a month it arrived, fresh from Latvia. I jumped on the QwertyCoin Community Telegram Channel and found a mining pool that turned out to be more profitable than CryptUnit had initially predicted. A couple days later a guy in the mining channel asked if someone with an X3 could connect to his pool to test his new configurations. I connected to his pool, and with his new configurations it was even faster than the first. Naturally, I began talking shop with him and started to learn more about the QwertyCoin dev community.

If you have a little bit of technical knowledge, the QwertyCoin wiki is a veritable treasure trove. Before long I had set up a QwertyCoin master node, (which does not require an initial investment to run, like other coins), set up a mining pool, and poked around the QwertyCoin github. Even if you had zero technical know-how, the QWC team has worked hard to ensure that their documentation is accessible to all, with step by step instructions for things that many would find trivial (on the opposite end of the spectrum, if you want to host your own web wallet, pointed to your master node, they’ve got you covered there as well.)

Late one night, I decided to ask the QWC Telegram channel if anyone else was American. From my time lurking it seemed like most of the devs and active members were European or Chinese, so I was curious what the American representation was like. One guy did respond, another dev who had been involved with the project for a while. We had a couple things in common and chatted for a while. He was an old school engineer who still mostly coded in C and COBOL — the guy had been around the block a time or two. When I asked him how he found QwertyCoin, he told me,

“I’ve interacted and been a part of several crypto communities, even the top ones, and most that I can remember don’t really let the community decide the direction of the coin, they all had developers or a board that made all the decisions. The developers on this project are different. Also, they are fairly good and have accomplished a lot without any funding or outside help, that means they believe in the project more than anyone.

There has been no marketing and they’ve never asked for money upfront to work on this project. They’re building an ecosystem that could be great.”

I was intrigued, and the next day I started doing as much due diligence on QwertyCoin as I could.

What makes Qwertycoin stand out?

The QwertyCoin team has established their reputation as a group of practical forward thinkers. Egalitarian Proof of Service (EPoSe) is just one brainchild, but it serves as a great example of how they are quietly shaping the future of cryptocurrency. Several years from now, a couple issues will arise for crypto users; blockchains will be too large to sync to a retail PC’s hard drive and mining will no longer be profitable and potentially very damaging to the environment. EPoSe addresses both of these concerns. When the blockchain becomes too large to store on a retail hard drive, crypto users will need to connect to remote nodes in order to sync their wallets. Therefore, it is inevitable that the QWC blockchain algorithm has to shift from individual miners(EPoW) to competent node operators(EPoSe) as more coins are mined towards QWC’s maximum supply limit of 184.47 billion and remote node usage increases over time. Most coins require an investment to host a remote node, and in return the host is paid fees for each transaction they process. With QwertyCoin, anyone can host a remote node, so the main avenue of acquiring coins will shift from mining to hosting. Another side effect of EPoSe is to further secure the QWC network, decentralizing it on a larger scale. As with all their proposals and ideas, the QWC team has been very transparent in their analysis of EPoSe’s effects on the community. You can read more about EPoSe in the whitepaper, and can expect a vote on it in the future.

Crypto always carries risk, and QWC is no different. The QWC team has provided a large volume of information on their project, and it should be perused before investing.

  • Paul Oliva

The near future of cryptocurrencies [Medium]

[..privacy… decentralization…. free from censorship]

I am sure most of readers on medium would have read enough about the importance and significance of our privacy, decentralization and being free from censorship of any sort.

We still want all of them but it seems to me that the regulating bodies do not want us to have it. Please read the article from the link below to find out more.

FATF Regulations – Is It the End of Crypto Anonymity?The FATF’s regulation might be the end of privacy in crypto industry, and the regulation might also create a black…

Major national and international exchanges will have to comply with these regulations eventually but there are some limitations to this in decentralized public blockchains, because

  • the ownership of an addresses cannot be identified unless the owner declares it
  • even if a person declares the ownership of an address, it can only be proven by the regulating bodies when they and complying exchanges are the ones that hold the keys to the account and has a KYC system in place.
  • basically, if the account addresses can be issued by anyone, account identification has to reply on self-declaration and lacks credibility.

So in conclusion, what the regulating bodies want is neither feasible nor possible with popular coins like bitcoin or ethereum. In order to make their plan possible, all blockchain accounts shall be issued by exchanges.

All privacy coins(or dark coins which is a bad term being forced on us by media for some reason) will be affected by this and I already read articles of some exchanges delisting of major privacy public blockchains unless a proper measure is taken for the identification requirements. (which is impossible as mentioned before.)

Will this affect Qwertycoin? Not really. Not because we will give up our rights on privacy but because we have a way around this. So, do not worry.

The voice of the Chinese Qwertycoin Community

We think now is a good time for us to grow community and steady price, rather than listing on those non-top exchanges.

Some exchange came to our Chinese community and ask to list qwc into their exchange, some even offer free listing. But we politely refused. We Chinese community don’t think the more exchanges the better, so we refused them.

Let me clarify what we Chinese community think are the more important thing for qwc to do at this stage.

1. Grow community, in whatever way you can think of. Chinese community has donated more than 100 millions qwc from community itself and this fund will be used to promote QWC, that means collaborate with some local medias, who will write articles and make posters to spread QWC to as far as we can.

2. Unite as many miners as we can, we Chinese community now has a qwc miner group, and more and more miners join us. We also try our best to convince those dero miners to join us. Also, we has collaborate with some big pool provider like dxpool. We do this because we think the HashRate is the most important. If we lose miners, we will put QWC into risk.

3. Steady the price. We have unite a bunch of community members to build the buy wall on, you can have a look there.

We do this because currently we all experience people’s frustration even complain while QWC drop from 60 subsats to 15 subsats.

So we think price is important too. If we don’t show community qwc’s buy power, then community may loose confidence.

Dear team, let’s slow down the step of listing some non-head, not famous exchanges. let’s think together, make our community strong, spread qwc, not only in China, but all over the world.

– Chinese Qwertycoin Community