Categories: EducationFAQ

What Is Binary-Chain?

There are plenty of reasons to keep a close eye on altcoins these days. That isn’t only because these new coins may actually be a decent store of value, but it’s also due to their underlying developments. Binary-Chain, for example, is a pretty unique blockchain protocol. It will be interesting to see how this new protocol plays out in the long run. The technology is currently utilized by VeriCoin and Verium, although it is possible we may see other altcoins embrace something similar in the future.

Binary-Chain can be a Game Changer

There are many different types of blockchain technologies in the world already. Up to this point, they have all more or less revolved around the same ideas. It is evident right off the bat that Binary-Chain is something different, although it remains to be seen if this venture can be a success. More specifically, a dual blockchain protocol pairing a digital currency with a digital reserve is something the world hasn’t seen before.

Users of this hybrid solution will benefit from faster transactions, additional security, and fewer scaling issues. This latter point is of significant interest, as scalability remains a major problem in the world of cryptocurrency these days. In a way, it makes sense to pair digital currencies with digital reserves, even though it is far easier said than done. Not every digital reserve can be trusted by default either, no matter what it is linked to.

One limitation of most cryptocurrencies today is that they can’t be a fast currency and a decent store of value at the same time. Cryptocurrencies are inherently volatile, and those that aren’t suffer from incredibly long transaction delays. While most currencies are working on solutions to address these issues once and for all, it is anything but easy. Until solutions such as Bitcoin’s Lightning Network become the new norm, the potential for long delays will always be present, unfortunately.

Whether or not Binary-Chain is the answer to these problems remains to be determined. A dual blockchain system makes a lot of sense in this regard. Leveraging complementary technologies to accelerate transactions is a worthwhile venture to explore. Interestingly enough, this protocol uses Proof-of-Stake-Time and Proof-of-Work-Time to create a more secure and convenient blockchain protocol. With transaction times reduced to 30 seconds for VeriCoin and one to three minutes for Verium, the benefits are clearly visible to everyone.

At the same time, using two different blockchains linked together would seem to improve overall decentralization as well. Although it remains to be seen how it will play out when it’s put through the paces, this idea certainly opens up a lot of new opportunities. Plus, having two blockchains powering the new protocol will improve immutability beyond anything the world has seen to date. That aspect is becoming all the more important in the world of digital money, to say the very least.

Finally, Binary-Chain is also beneficial to miners. Everyone who mines VeriCoin will earn Verium and subsequently benefit from higher fees. Verium itself can also be mined directly using one’s CPU, which makes it highly appealing to novice cryptocurrency enthusiasts. Plus, it seems atomic swaps between both blockchains will be introduced later on. It is a concept worth keeping an eye on, even though neither of these currencies is among the “big guns” right now.  

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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