You Have Heard Of Bitcoin But What Is Gridcoin?
Anyone who has heard about cryptocurrency knows about Bitcoin. But what you might not know is Bitcoin isn’t the only cryptocurrency on the market. Gridcoin is currently making a name for itself in the world of digital currency.
What is Gridcoin?
Gridcoin is an open-source cryptocurrency given as a reward for participating in the BOINC volunteer computing grid. The grid is a network of computers owned by individual users. And the network acts as sort of a supercomputer to process data for scientific research.
BOINC is an acronym for the Berkeley Open Infrastructure for Network Computing platform. Any scientific project with data to process can freely access the platform. Computer power for BOINC is donated by multiple users – all of which can receive Gridcoin in exchange for participation.
The Basics of Gridcoin
The Gridcoin blockchain mints and distributes cryptocurrency. It’s a proof-of-stake protocol, which is the opposite of Bitcoin’s proof-of-work protocol. It also monitors the contributions to BOINC in order to issue out the rewards.
As DZone writer, Jo Stichbury explains, “The BOINC framework is based on a client-server architecture. Each BOINC project hosts an individual project server, which stores and distributes project data to its clients. Calculations are performed on a client computer and the results are uploaded back to the server. The client will routinely contact the project’s servers to request tasks (known as work units), while the project server keeps track of the individual client’s “credit” to measure how much work it has done for the project. Upon verification of the validity and honesty of a client’s completed work unit, a reward, in the form of BOINC credits, is allocated to serve as proof of participation. When you start mining Gridcoin, your BOINC credits are used to calculate your GRC reward.”
Similar to Bitcoin, Gridcoin is tradable on some cryptocurrency exchanges. It’s also possible to buy and sell Gridcoin in exchange for traditional currencies, like the US dollar.
Like with all cryptocurrencies, the value of Gridcoin fluctuates on a daily basis. Currently, 1 Gridcoin is worth 0.010653 US dollars.
Gridcoin is Environmentally Friendly
Proof-of-stake is a green blockchain security protocol, and more environmentally friendly than proof-of-work. This is because proof-of-stake requires much less energy than the complex calculations required by proof-of-work.
Mining Bitcoin uses an incredible amount of energy. But mining Gridcoin not only uses less energy, but the energy it does use helps advance scientific projects.
Another difference between Bitcoin and Gridcoin is that Bitcoin mining requires an ASICS miner. And generally, an ASICS miner is expensive and difficult to obtain.
Gridcoin, on the other hand, uses standard hardware that just about anyone can access. Some BOINC projects work well with CPUs, and others might work better with GPUs. Guidelines are provided to help users understand which hardware is best suited for which project.
BOINC projects make use of these computers during idle time. A user who contributes their computer to a project does so only when the computer is not in use. This is significant because most computers sit idle for a great deal of time. Joining several computers together into a supercomputer is a great way to get power for the BOINC network.
This type of computing power is described as Idel Processing Potential or IPP. That’s because the processing power is used when the device is otherwise not in use by its owner.
Any item with a processor can contribute to the BOINC network and earn Gridcoin. Computers are used most often. But it’s also possible to participate with smart appliances, cars, toys, smartphones, tablets, and gaming systems.
The value of Gridcoin is currently 1 GridCoin for 0.010653 US dollars. That’s not a great sum of money in the crypto world, but it adds up over time. Anyone interested in earning Gridcoin can participate in BOINC and earn Gridcoin as a reward for their participation.
While Bitcoin still garners the most attention in the crypto world, competitors such as Gridcoin are giving it a run for the money in technological evolution.
Even as Bitcoin may be compared to digital gold and is looked at as the ultimate digital store of value by many, it’s proof-of-work nature makes it a power hungry behemoth.
This is where Gridcoin comes in and shines in comparison. Proof-of-stake protocol offers tremendous benefits, including the power efficiency needed for the future.
Gridcoin also offers a plethora of benefits beyond just power efficiency, giving it the potential to thrive well into the ever evolving blockchain era.