Laxmicoin is another cryptocurrency with big goals. Laxmicoin is a cryptocurrency for Indians by Indians. The project started at a time when only a negligible portion of the Indian population even knew about cryptocurrencies let alone investing in them.
Laxmicoin® is a blockchain platform powered by billions of devices. Started in 2012, we are on a mission to make the most powerful infrastructure for decentralized applications.
Cryptocurrencies are not a foreign concept anymore. Back in 2009, we saw the launch of the first decentralized cryptocurrency called Bitcoin. With the introduction of Bitcoin, netizens became aware of the potential of a cryptocurrency.
Cryptocurrencies are usually decentralized digital assets. They don’t usually have any physical existence and are not dependent upon any physical thing. So cryptocurrencies are basically the complete opposite of our traditional currencies.
Since the inception of Bitcoin, we have seen a lot of cryptocurrencies. Some of them were (are) just scams or do not offer any real values. But a select few are really trying to revolutionize our economy. We have useful altcoins like Ethereum, Ripple, Litecoin etc which have proved their worth over the years.
The project faced a lot of hiccups during their long journey. But finally, it feels like Laxmicoin is ready to roll out soon. As we covered earlier, Laxmicoin team held a seminar on 7th February. The main goal of this seminar was to create awareness among the citizens about cryptocurrencies. The Laxmicoin team also revealed their much-awaited roadmap in this event.
Just a couple of weeks back Laxmicoin also uploaded their project whitepaper to the website. And this article will aim to break down the whitepaper and summarize the contents for you. So without any further ado, let’s get on with it!
INTRODUCTION TO INDIA’S FIRST CRYPTOCURRENCY
The Laxmicoin whitepaper starts with explaining how the traditional financial system is not user-friendly at all. It also claims that although we have cryptocurrencies, market leaders also suffer from a lot of demerits. For example, it points out that popular cryptocurrencies like Bitcoin and Ethereum have really low transaction throughputs.
The whitepaper also mentions that the mining scene is also unjust, fees are high, privacy is non-existent and everything is traceable. Plus it argues that we, Indians, didn’t get proper chance to be a part of these cryptocurrencies during their inception.
Laxmicoin briefly talks about their goal of creating a user-friendly cryptocurrency. And then moves on to overviewing the cryptocurrency industry. The next few pages of the whitepaper briefly go over why India as an economy is extremely important for the cryptocurrency industry. And it also talks about how Laxmicoin can disrupt the Indian economy and make it better. The whitepaper also introduces us to the core Laxmicoin team.
1. THE USE OF CRYPTONOTE PROTOCOL
After the introductory pages come the real technical details about Laxmicoin. First of which is the use of Cryptonote hashing protocol.
The Cryptonote protocol is not an unknown protocol to us cryptocurrency enthusiasts. Over the years we have seen a lot of cryptocurrencies using this protocol. The main reason is undoubtedly its advanced features and user-friendliness.
The Cryptonote protocol also manages a distributed public ledger or blockchain to keep track of the transactions. But the blockchain is slightly different than say the blockchain of Bitcoin or Ethereum. Because the Cryptonote protocol has privacy features that can obscure information such as sender, receiver and exact transaction amount.
Not only this, using Cryptonote also solves the issue with Bitcoin mining. The Bitcoin mining scene is heavily dominated by ASIC mining rigs. So only a wealthy few have the resources to mine Bitcoin these days. But Cryptonote is a memory heavy hashing algorithm. It incentivizes CPU miners over GPU and ASIC miners.
2. TOTAL NUMBER OF COINS
As we all know a cryptocurrency usually has a limited supply of cryptocurrency units, unlike a fiat currency. But for Bitcoin, this limit is too low. The limit for Bitcoin is 21 million BTC units. Out of which 16.9 million are already circulating in the market.
This makes it very hard to define small amounts with BTC. For example, currently, $1 USD is about 0.000087 BTC. Bitcoin actually supports up to 8 decimal places.
To make the cryptocurrency more traditional currency like Laxmicoin will have a greater number of units. There will be 150 billion Laxmicoin in total! The developers have also designed Laxmicoin to support up to 2 decimal places only.
So Laxmicoin will have a more “human” feel than Bitcoin in terms of value representation.
3. TRANSACTION REWARDS
Laxmicoin will actually reward users for using the service and doing transactions. This feature is simply there to gain the confidence of users and encourage more people to adopt it.
This rewards mechanism comes with a catch. A Laxmicoin user can only perform 20 free transactions per month. This has been implemented to stop spamming. Laxmicoin network will also halve the reward amount every year.
Until Laxmicoin completes 5 years of operation. When the development team has decided to scrap the reward mechanism. We are yet to receive more details about this reward method. So right now I cannot tell you how it will work and what the reward amount is.
To supply the required Laxmicoin units for transaction rewards, Laxmicoin will be keeping a 5% reserve of the total volume of coins. That means Laxmicoin team will have a reserve of 7.5 billion Laxmicoins.
4. MOBILE MINING
One of the main goals of the Laxmicoin team is to make their cryptocurrency extremely user-friendly. And also make the mining experience better than the peer. For that, they need to make the process of mining Laxmicoin easier, cost-effective and accessible by anyone.
And that is why Laxmicoin is targeting the mobile devices. According to the whitepaper, there will be 2.5 billion smartphone users worldwide by 2019. And out of that, around 425 million users will be Indian.
By making Laxmicoin mining mobile friendly they will be able to successfully tap into this huge and evergrowing market. And this is one of the reasons why they have chosen Cryptonote protocol as the base of their project.
As I mentioned above, the Cryptonote protocol heavily incentivizes CPU mining over GPU mining. And completely blocks ASIC mining. The Laxmicoin team is making further changes to the code to make the CPU and GPU mining almost equal.
This way they will be able to provide a mining experience better than most other cryptocurrencies. Cryptocurrencies like Electroneum is already experimenting with this feature and beta testing. Laxmicoin also states that the block generation time will be only 2 minutes. So in a single day, there will be 720 blocks in total.
5. MICROTRANSACTIONS SUPPORTED
As Laxmicoin will have so many units, the transaction charges will be comparably low. And due to their transaction reward program, it will be technically free. So microtransactions will be another feature on Laxmicoin.
With their goal of tapping into the mobile industry, Laxmicoin may be used for in-game and in-app purchases. And the transactions will be feeless, at least for the five years (as far as I understand the whitepaper).
6. BONUS OF P2P TRANSACTIONS
As I have mentioned above Laxmicoin will have mobile support. So without a mobile wallet app, it will not be possible. According to the whitepaper, this mobile wallet application will be feature heavy yet user-friendly and lightweight.
And with a mobile wallet app, they will also provide the functionality of P2P transactions. Peer-to-peer or P2P, in short, are seamless transactions that happen between two parties. Usually with the help of an intermediary node.
The whitepaper adds that “For security and validity reasons we are making it mandatory for the wallet app to connect to two or more nodes”. The mobile wallet will actually act as a proxy node. While the randomly selected nodes will broadcast the transaction throughout the network.
7. LAXMICOIN “M2K”
Another promised really revolutionary feature of Laxmicoin is the M2K service. I believe M2K stands for mobile to (public) key. With this feature, a Laxmicoin user will be able to link his mobile number to his wallet. Specifically to the public-key of his wallet.
This way one can easily send or receive funds with just their mobile number. This reduces a lot of hassle and makes the cryptocurrency more user-friendly. Because cryptocurrency wallet ids can be very difficult to remember. It becomes when you just need the phone number with the other party.
This type of mobile payment feature is actually not foreign to the Indians. As the NPCI has already launched UPI and Aadhar based payment system. Using which anyone, regardless of what type of cell phones they use will be able to make payments easily.
8. WHAT IS THE ROVER NETWORK?
Laxmicoin is introducing what they call “Rover Network”. They haven’t yet disclosed the nitty gritty of this feature. But you can easily guess that the Rover Network is a smart network of nodes synchronized with Laxmicoin blockchain.
Laxmicoin claims that Rover Network will be the future of internet by providing multi-blockchain Proof of Stake support. Along with Rover Network comes Rover Consensus. The Rover Consensus ensures that the data is synchronized on all active nodes. Thus there will only be a single global ledger.
So the Rover Network will enable the Laxmicoin blockchain to handle smart contracts. Which means one can deploy distributed applications on the Laxmicoin platform.
9. LIGHTNING NETWORK
Another feature of the Rover Network is its support for the lightning network. Cryptocurrency enthusiasts already know what lightning network really is. Originally proposed by Joseph Poon and Thaddeus Dryja, the lightning network is aiming to solve some critical issues with blockchain.
You can see it as a second layer payment protocol that operates on top of an existing blockchain. The lightning network enables a blockchain to process transactions almost instantly. So the payment speed comes down to milliseconds rather than seconds.
The lightning network is also the solution to most cryptocurrencies scalability problems. It can also reduce fees and make microtransactions a thing. The lightning network also supports cross-blockchain atomic swaps as long as both the chains use the same hashing algorithm.
10. USE CASES OF THE ROVER NETWORK
The Laxmicoin whitepaper states a handful of use cases for their Rover smart Network. Let’s briefly discuss them below.
- Record Storing: One can easily use the Rover Network as a system of record or database. Laxmicoin states that the Rover Network can be used for digital identity purposes. You can also create a synchronized main database rather than having database management between organizations. Financial institutions can also benefit from Rover Network. The Rover Network can help them in reporting, clearance, settlements, accounting, auditing etc.
- As a platform: Like other distributed smart networks, the Rover Network can be used as a platform too. One can create smart contracts on the Rover Network. Right now the whitepaper doesn’t state how you can create and deploy the smart contracts. But if they want to stay in the game then they will have to make the process of creating and deploying smart contracts very user-friendly and easy. With the help of smart contracts, the Rover Network can perform automated governance tasks and also automate regulatory compliances.
- Cross-currency transactions: As discussed above another use case of the Rover Network is cross-chain as well as cross-currency transactions.
- RVPN: Laxmicoin claims that using the huge number of participating nodes, the Rover Network can be used as a VPN. As the Rover Network is inherently decentralized, the VPN will also be truly decentralized. So no one will be able to track back a connection to a specific user.
- RDNS: Using smart contracts to facilitate domain name resolution is also not something new. Laxmicoin is also looking forward to implementing this feature on their platform. They have named this RDNS.
11. WHY DOES LAXMICOIN LOOK PROMISING?
The whitepaper states that the project looks promising because of its goal to be as user-friendly as possible. Plus the huge number of Laxmicoins will make it easier for the average Joes to get in.
Along with these, they are making the whole platform very easy to use. So even the most non-technical person can easily transact Laxmicoin. They have also promised to make the app very lightweight. Both in terms of memory it takes up and data it consumes.
Plus with the successful implementation of the Rover Network will make Laxmicoin a smart cryptocurrency for the future.
12. GOALS OF LAXMICOIN
The whitepaper comes to an end by mentioning their long-term goals and the whole project roadmap. Laxmicoin wants to gather as much fund as possible to support their project. Having a respectable budget will positively help the project. As it will allow Laxmicoin to hire more developers and make the core team stronger.
According to the roadmap, Laxmicoin is set to launch in the second quarter of 2018. Additional features like mobile mining, P2P transaction, Rover Network etc will happen one by one after the launch.
FINAL WORDS ON LAXMICOIN
This brings us to the end of this article. I have tried my best to summarize the entire Laxmicoin whitepaper. I hope I was able to convey the important information from the whitepaper to you.
In my opinion, Laxmicoin is a promising project. It has the potential to shape the future economy of India if everything happens as planned. Indians are already heavily relying on digital banking and payment systems. So adopting a new digital payment standard won’t be an issue.
Some points to consider about the Laxmicoin event:
- The project doesn’t have any relationship with RBI or any government bodies. Currently, it doesn’t even have approval by RBI, SEBI or financial bodies of the Government of India.
- The Laxmicoin team doesn’t promise or comment anything on the coin value. The whitepaper has not even listed any exchanges they are targeting. It just mentions that they will be reaching out to popular exchanges.
- It’s like any other crypto project like Ethereum, Ripple, Litecoin or Stellar. But it has a few revolutionary goals.
But for everything to happen Laxmicoin need to have proper support from the government too. Time and time again the Indian government has exclaimed its distaste towards cryptocurrencies. So I am not really sure whether they will give green signal to the Laxmicoin project.