The cryptocurrency world has been flooded with digital coins, some of which stand out from the rest while others are lost in the midst. Among the few that have stood out is Vertcoin (VTC), or the people’s coin. VTC was launched in 2014 by David Muller.
Vertcoin is a virtual currency that has borrowed its underlying concept from Bitcoin. They both use the Proof of Work consensus algorithm. However, its implementation is very different from how its implemented by Bitcoin.
Unique Vertcoin features
For example, the Vertcoin platform is ASIC resistant meaning that the platform can’t shift towards centralization as is the case with ASIC controlled blockchain projects like Bitcoin.
Apart from the mining aspect of the VTC platform, the whole project is community driven and community funded through donations and volunteers. Additionally, the VTC platform uses the Lyra2RE (V2) after upgrading from Scrypt-N hash function instead of the SHA-256 implemented by Bitcoin.
With the Lyra2RE hash function, the hash rate is relatively low compared to when using the SHA-256 hash function. The block confirmation time on the Vertcoin blockchain is 2.5 minutes which is similar to that of Litecoin.
According to its official Medium blog:
Vertcoin is a coin with simple principles…to provide a truly decentralized currency by placing the power to mine and secure the network in the hands of everyone. No politics. No centralized ASIC firms. No bullshit. Just the coin and the community, we believe the crypto-space needs that.
Miners on the Vertcoin platform are rewarded with 25 coins for every successful block added. This reward is marked to be halved every 4 years or after 840K new blocks have been added.
VTC is mined using mining rigs comprising of Graphics Processing Units (GPUs). As in any other cryptocurrency project, mining is the process of validating transactions. The validating entity is then rewarded for their work.
With Vertcoin, mining can be done individually where you set up your own rig, or you can join Vertcoin mining pools. A mining pool is made up of individuals who add on to each other mining rigs to form one huge rig that is capable of finding and cracking new blocks faster.
The two options have their pros and cons. For example, if you decide to mine VTC individually, you will have to invest more money into setting up a strong mining rig that will help pay for its maintenance and still leave something in your wallet. On the other hand, if you decide to go with the Vertcoin mining pool option, you will have to share the rewards gained for each successfully mined block.
If a mining pool is your preferred option, look out for these six things:
Server location: For your contributed hash power to be close to 100 percent of your rig, the servers used by the mining pool should be closest to you so as to minimize on the latency.
How the rewards are distributed: Different mining pools have different schemes to pay miners who have contributed their hash power. Some mining pools distribute the rewards as a percentage of the total shares while others stipulate that each miner gets a flat payment for each block solved.
At least 95 percent server uptime: This is key since if the server is prone to frequent downtimes, the mining frequency is negatively affected hence your earnings.
Fees: A Vertcoin mining pool, just as other crypto mining pools, charges for services rendered. As a miner trying to associate yourself with a given pool, it’s advisable to check on their fees. Look for pools will lower or reasonable fees and those that have low incidences of finding invalid blocks.
Reliability: This is a very crucial aspect when choosing a mining pool, whether it’s a Vertcoin mining pool or any other crypto mining pool. A pool with a history of not paying miners who contributed their hash power should be avoided. This also implies that a thorough background check is required before joining any mining pool.
Purchasing and storing Vertcoin
Apart from mining, VTC can also be bought on cryptocurrency exchange like Upbit, Poloniex, Bittrex among others. In most of the exchanges, Vertcoin is paired with either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), among other cryptos.
The number of wallets offering VTC support is limited. But, the coin can be stored in the Ledger Nano S, Trezor, VTC’s core wallet or the Electrum wallet. Additionally, you can choose to store VTC coins on an exchange provided wallet.
With the team behind the cryptocurrency advocating for an ASIC-resistant coin, Vertcoin is kept within reach of every crypto enthusiast keen on acquiring cryptos through mining. It also has respectable mining pools. Notably, Vertcoin supports cross chain atomic swaps with LTC and BTC.