CreditBit is a cryptocurrency that calls itself the “Future of Money”. Find out everything you need to know about CreditBit today in our review.
What is CreditBit?
CreditBit (CRB) was launched in 2015 with the same goal as many altcoins: to provide financial services using blockchain technology. CreditBit was originally developed on a Bitcoin-like blockchain. However, in spring 2017, the cryptocurrency migrated to the Ethereum blockchain.
CreditBit wanted to solve one of the big problems facing new altcoins: due to limited block size, altcoin transactions tend to be slower than Bitcoin transactions. With that in mind, the creators of CreditBit advertised the cryptocurrency as being ten times faster than bitcoin.
The block generation time for Bitcoin is 10 minutes. Meanwhile, an average CreditBit transaction takes less than 30 seconds, which makes CreditBit the world’s fastest cryptocurrency.
What is Credit 2.0?
In January 2017, the team behind CreditBit launched a new project called Credit 2.0. That project consisted of several different platforms, including CreditGame, CreditMC, CreditDAO, and more.
As part of the Credit 2.0 project, the CreditBit cryptocurrency was migrated to the Ethereum blockchain.
Why Ethereum? The CreditBit developers were seeking ways to eliminate value blindness and blockchain blindness while also implementing Smart Contracts and other advanced systems. The Ethereum blockchain was a perfect choice. The Ethereum blockchain also came with an important advantage for CreditBit: its speed. Ethereum offers fast transaction confirmations and its own programming language, making it easy to add innovations to the cryptocurrency.
Migration to the Ethereum blockchain started on March 8 and completed a few weeks later.
What is CreditBit DAO?
CreditBit DAO is a decentralized organization that enables the CreditBit community to vote and raise funds. Those funds will be used for development and promotional purposes. CreditBit’s developers believe this will increase the transparency of the project while giving the community an important voice for future decisions.
Some of the biggest decisions for CreditBit DAO came during the Ethereum blockchain migration. During this migration, users needed to register one or several migration accounts that acted as an intermediary. Those accounts were locked during the migration process. Then, once migration was complete, developers issued a proportional number of new Ethereum-based CreditBit tokens from a central migration account, and transferred those tokens to a user’s Ethereum account.
DAO, by the way, stands for Decentralized Autonomous Organization.
CreditGAME is a unique concept that will distribute a select number of coins through MMO and peer-to-peer games.
To enter into a distribution group, token owners lock down a fixed buy-in amount of coins. The token holder’s position (i.e. their score) in distribution games will decide how long his or her coins stay locked. Coins are locked for a maximum of one year. The score will also determine the token holder’s share of newly minted coins. Once this locking period is complete, the tokens will be free to enter new transactions.
Games will have different dynamics, rewards, and lock-in fees. Each period of distribution comes with a fixed amount of new coins. Those new coins can be used instantly after their distribution.
For peer-to-peer games, both players lock an equal number of tokens over a certain period of time and enter the game. The winner of that peer-to-peer contest will collect both yields for this locking period.
Confused? Essentially, CreditGAME is a central part of the CreditBit system: users can lock their CreditBits for a certain period of time and obtain a reward. Here’s how the official website explains it:
“Issuance of this currency is not regulated through central institution or a central bank, but through a process of voluntary locking. Each owner has an opportunity to lock (part of) their Tokens for some time period and gain a reward, similar to gaining yield for an investment bond.”
CreditBit tokens can be carried in select altcoin wallets. The CreditBit.org website officially recommends the following wallets for storing your CreditBit (CRB) tokens:
• Ethereum Wallet / Mist: Desktop client with full blockchain developed by the Ethereum foundation.
• MyEtherWallet: MyEtherWallet lets you create secure wallets without a command line or the need to run the Ethereum client on your device.
• Parity: Parity is a fast, lightweight Ethereum full client integrated directly into your web browser. It supports all future versions of the Ethereum network.
Ultimately, CreditBit is an altcoin that has been making headlines these past few months for being one of the fastest cryptocurrencies in the world today. With a transaction time of 30 seconds, CreditBit is aiming to make an impact in the world of cryptocurrencies.