The number of cryptocurrencies which offer masternode-based services continues to grow. Over a year ago, a new project known as LUXCoin was announced. It is one of the more successful projects to date, and one that has none other than John McAfee as the CEO of Luxcore. Now is a good time to recap what this project is all about and why it can be worth paying attention to.
The LUXCoin Vision
Standing out among the myriad of cryptocurrencies is not as easy as one might think. The LUXCoin team acknowledges as much, which is why they attempt to make an impact in many different segments. It is a project which provides privacy features, smart contracts, Bitcoin’s SegWit upgrade, block pruning, and hybrid masternodes, to name a few things. There is a lot worth paying attention to where this altcoin is concerned.
Under the Hood of LUXCoin
The smart contracts aspect of LUXCoin gets many developers excited. Whereas this technology was once native to Ethereum, it is pretty much a must-have feature for up-and-coming altcoins these days. For Lux, the goal is to introduce smart contract support to unify different blockchains. This process will be partially facilitated by LuxGate, a feature we will discuss a bit further down.
Opting to introduce SegWit, or Segregated Witness, is also a rather remarkable decision. Not because the technology is no good, but rather because it seems not all altcoin developers are convinced it is the best solution. Separating transaction signatures helps reduce blockchain bloat and can improve transaction speeds, thus it is an option worth considering.
LuxGate is the bread and butter of everything that makes LUXCoin tick. It is a “proprietary” technology which allows communication between different blockchains. In order to do so, the blockchains in question must be validated. This cross-compatibility also allows for advanced functions and tasks to be performed, which opens up a lot of potential future opportunities.
Unlike most masternode-oriented altcoins, LUXCoin effectively has a ‘mining phase”, although it also supports proof-of-stake. For the mining part, is it ASIC-resistant, which means the ecosystem is fairly decentralized. The staking aspect is static, rather than dynamic, which is a rather interesting approach. Users will be rewarded with a static reward regardless of how many coins they hold.
The LUXCoin Masternode Ecosystem
Running a LUXCoin masternode is not overly complicated. Users need to lock 16,120 LUX in collateral, and they will earn 20% of the rewards from mining or staking. As of right now, the block reward for masternodes is 2 LUX, worth $1.2. It is not necessarily the most lucrative option at first, but it seems users can expect to earn just over $260 per month per masternode. Given the strong technical focus of this project, the value per LUX may increase as more time progresses.
What Lies Ahead for LUXCoin?
Any cryptocurrency is only as good as its roadmap first and foremost. Not all the expected milestones for 2018 have been met at this post, although that is not necessarily a big problem. The official release of LuxGate is not ready yet, and the development of LUX-based dApps remains uncertain. The pre-mine of this currency was also supposed to be burned, which has not taken place yet. An updated roadmap for early 2019 has not been unveiled yet, but the development of the ecosystem is still ongoing at the time of writing.
Disclaimer: All information provided in this article is for educational and entertainment purposes only. MNMMG Does not offer investment advice and is not responsible for any financial losses sustained by its readers.