UBIQ Cryptocurrency – A Beginner’s Guide
Cryptocurrency or digital currency is a decentralized asset that can be used to pay anyone, at any time. It is money that hasn’t been issued by any state or government, theoretically making it safe from inflation. Cryptocurrencies depends on the users to mine and verify it. This acts as an incentive for people using the currency to ensure that it works as expected.
Bitcoin is the most famous of cryptocurrencies. It was the first one ever created, and it is based on blockchain. However since the Bitcoin’s advent there has been a flood of other cryptocurrencies. Every cryptocurrency has a unique selling proposition of it own. Some of these alternative coins or altcoins as they are called include:
What is Ubiq and how does it figure in
Ubiq is a decentralized platform which allows the creation and implementation of smart contracts and decentralized applications. Built upon an improved Ethereum codebase, the Ubiq blockchain acts as a large globally distributed ledger and supercomputer, allowing developers to create decentralized and automated solutions to thousands of tasks which today are carried out by third-party intermediaries.
Ubiq is an open-source, public, blockchain based cryptocurrency. It is based on Ethereum Virtual Machine. It works just like any other blockchain based currency with average block time being 88 seconds. The reason it is better than Ethereum is that it uses only the tired and tested features of the Ethereum platform. The Ethereum platform is continuously being updated and modified meaning that it is not always totally safe. Ubiq circumvents this problem by using only the tested features. Ubiq can be bought on various crypto exchanges just like many other cryptocurrencies. They also have wallets to store the Ubiq coins. There is no android wallet as yet, but there are desktop, online, and offline wallets available.
Ubiq is also unique in the sense that it did not have an ICO or Initial Coin Offering. All the Ubiq coins in existence, both with the general public and with the development team are either bought on a crypto exchange, or have been mined. This is unique because now the development team has a huge incentive in seeing the currency do well. The chances of the development team giving up on the currency or running away with the investors’ money has been reduced to zero.
Inflation control mechanism
Another interesting feature of Ubiq is the built in inflation control mechanism of the currency. Like all other cryptocrrencies, new coins are created during the mining process to be given to the miners as transaction fees. This also works as an incentive for the miners to do their job in least amount of time. However keeping the amount of coins created the same, or leaving them to market forces is a bad idea as too many coins will cause the overall value to dip. As a result in the first year eight coins will be created as a result of mining. Going forward, the number of coins produced will reduce each year till it stabilizes at around one coin. Thus the inflation in the first year will be around 7% and it will dip to about 0.72% where it will stabilize.
Another interesting aspect of Ubiq is the built-in functionality of ‘Smart Contracts.’ Smart contracts are similar to normal contracts with the change that a third party is not required to enforce it. smart contracts are basically contracts with certain terms and conditions that neither party can change. For example, if one party pays the collateral for a house, say with Ubiq coins and is expecting the keys by a certain date. Now if the key is not received by that date, the entire transaction is automatically reversed and the money refunded. Going forward this has huge applications in a connected economy. For example in the event of an automobile accident, multiple sensors in the cars and the road can make a judgement about which party is the offending party, and how much in damages should be paid, and enforce it too. Of course this is too futuristic, but that will be the end game for smart contracts, and the fact that this functionality is built-in speaks to the vision of the development team.