Since the creation of the first digital currency (Bitcoin) by the enigmatic Satoshi Nakamoto, we’ve witnessed several industries adopting blockchain tech in a bid to improve business workflows and transform their operations.
Bitcoin overcame many challenges plaguing the financial services industry. In the process of changing a stagnant and problematic economic structure worldwide, Bitcoin had its fair share of drawbacks.
Numerous blockchain-based projects were created to solve these inherent problems, but they’ve either had half-success or failed to make any mark.
SBR Blockchain, a new project with a double-pronged token system, aims to solve the many problems plaguing the blockchain and crypto space as a whole.
Some of these key problems include:
- Mining profitability: We can all agree that cryptocurrency mining operations deserve a better reward mechanism. Cryptocurrency mining is no longer as profitable as it was. A drop in the price of cryptocurrencies like bitcoin (which uses a PoW mining algorithm) will hugely affect miners earnings.
Constant competition prompts miners to upgrade their mining hardware even without significant increase in their earnings.
- Energy consumption: Inefficient power usage has always been a long-standing issue with cryptocurrency mining. The carbon footprint created by mining farms and datacenters is a cause for concern.
Surely, there’s an urgent need for a solution to this major energy problem plaguing the cryptocurrency mining sector?
- Centralized mining: The problem with mining (proof-of-work) is the possibility that a blockchain network can be hijacked by a coalition of miners. In what is known as a 51% attack, a group of miners making up more than half of the total mining nodes can seize control of the network.
- Volatility: Price volatility is a problem for virtual currencies. Fiat money is more stable, and if crypto wants to be taken more seriously as a store of value, the problem of huge price volatility needs to be addressed.
- Security: Blockchain is secure, however, cryptocurrencies in wallet or exchanges are at risk of loss or theft. The unregulated nature of crypto makes it even more prone to attacks from malicious actors. SBR platform hopes to solve the inadequate crypto security problems.
How SBR Seeks to Solve These Problems
SBR is not your everyday cryptocurrency project. While this might sound cliché, the project is poised to revolutionize the cryptocurrency and finance industry combined.
Some even say SBR is what regulators, banks and even the government have been waiting for to finally propel the cryptocurrency industry into mainstream acceptance.
Now, you might wonder, what are the features of this blockchain platform and why is it being touted as the next big thing in the cryptocurrency industry. Here’s exactly why.
Highly Secure and Efficient
SBR Blockchain sets a limit on the hash speed cap to help minimize the power needed to mine coins. This also reduces the need to purchase better mining equipment and increases the profit miners can make. The hash speed is determined before miners launch a new operation.
By capping the hash speed, SBR Blockchain will help prevent 51% attacks, thereby maintaining the integrity of the network.
Innovative Tokenomics
The most innovative feature of the SBR Blockchain platform is the two-coin strategy for reducing price volatility.
We already know stable and profitable mining activities help to reduce cryptocurrency price volatility. However, SBR goes one step further to make the dream of many cryptocurrency lovers a reality.
SBR Blockchain has introduced an innovative two-coin system: a regular coin with a limited supply (like Bitcoin) that will be mined, and a token that’s backed by 200% reserves aimed to attract banks and governments.
The SBR coin will catch the eye of the wider crypto community while the token is designed to appeal to financial institutions and government agencies.
Conclusion
The objectives of the SBR blockchain platform are divided into 5 main parts: improved security, mainstream adoption for cryptocurrencies, reduced price volatility, and better incentives for miners.
With the features listed above, the platform has all it takes to make a name for itself in the cryptocurrency community when it finally launches in 2021.
Writing Credits:
Oluwatobi Oluyede
https://github.com/VHWWP-International/SBR-Whitepaper
SilverBitcoinReserve platform developed by VHWWP a International non-profit based out of the USA info@vhwwp.com
