Tumblebit by Stratis is a new platform for sending and receiving Bitcoin. The creators boast that their invention is a trustless, decentralized and private solution for users of Bitcoin across the globe.
How Does Tumblebit Work?
Should you have 25,000 Stratis or more, you can make staking rewards. To earn staking rewards (i.e. “free Stratis”), all you need to do is hold 25,000 or more Stratis on your QT (core) pocket, and also maintain a synchronized full node running on your PC. Even though the amount of Stratis you can stake is variable, for every 25,000 Stratis you hold, you'll stake/earn approximately 1 Stratis per day.
Stratis has lately opened up another tier of benefits for holders of 250,000 Stratis or more masternodes. By conducting a masternode, You can make additional benefits over and beyond staking rewards of 12-15 Stratis daily.
How Do The Masternodes In Stratis Work?
Masternode owners can supply the Stratis platform with assistance, acting as a Bitcoin tumbler. A Bitcoin tumbler lets users send or receive Bitcoin in a more anonymous fashion, because your trade is blended, or ‘tumbled' with dozens of other transactions of the same amount/size, obscuring whose Bitcoin originated from where and has been sent to wherever.
Here are the advantages of running a Masternode:
- You earn 1% of all Tumblebit trade fees, which, over time as trade volume grows, will probably double the worth of your staking rewards.
- There'll be quite a limited quantity of masternode owners, which will definitely keep your transaction earnings high.
- You're helping to provide people with a means to send or get Bitcoin in a trustless, anonymous, and private way.
- You can continue to stake and get Tumblebit fees. In fact, your own Stratis never needs to leave your QT wallet. Shortly, you'll be able to maintain your Stratis onto a tricky wallet and operate a masternode as well.
- Your IP address is hidden from prying eyes, since masternodes that help fall transactions do so through the TOR (the onion router) network.
- You may not incur liability for tumbling Bitcoin (although I'm not a lawyer and you should always consult legal counsel for advice) because all transactions are encrypted and unfamiliar to you, the tumbler.
- If you're a business client, such as an exchange or financial services company, you are a honeypot for hackers who want to steal your money. By tumbling incoming and outgoing transactions from clients, it is possible to potentially decrease a hacker's ability to sniff your traffic and steal from you, as a result of encryption, anonymity of info, and IP obfuscation of the TOR network.
- You'll be able to receive tumbled Bitcoin without needing to have Stratis' Breeze Wallet — you can use your own preferred wallet, if you wish.
- It's possible to use Stratis' Breeze Wallet as a secure Bitcoin and Stratis wallet, from which you can send your Bitcoin through a tumbler, even in the event that you don't conduct a masternode.
- Coming soon, you will have the ability to invest money in ICOs (again, check with legal counsel) in a more secure manner, using Tumblebit. Stratis is shortly to launch an ICO platform that allows companies to produce and market their ICOs and accept tumbled Bitcoin (possibly tumbled Ethereum soon).
Disadvantages And Dangers Of Tumbebit
- Tumbling takes time — to ensure that ‘enough' trades are tumbled at precisely the same time to preserve anonymity, and also a trustless environment, sending or receiving a tumbled trade takes 10 blocks to support a single transaction.
- To keep transactions anonymous, you are able to send or receive increments of 0.1 BTC just at this time — this will soon change and be expanded to other denominations like Ethereum.
- You must pay an excess tumble fee of 1% of your transaction, but this is a little cost to pay for anonymous, private, and trustless transactions that were the guarantee of Bitcoin since its beginning.
To discover more about Stratis token and their ongoing and upcoming projects, including Breeze Wallet, Masternodes, their ICO Platform and more, visit StratisPlatform.com.