Been seeing this project pop up here and there.
Some say it has potential, and some say it is just another shitcoin destined for failure.
Ultimately, that is for you to decide after we drop dat knawledge.
Today’s review is LuxCoin.
Let’s dig in…
LUXCoin (ticker: LUX)
Wtf is this shit?
Luxcoin, sitting at #438 on CoinMarketCap at the time of this writing, has been gaining some attention. Whenever we see a coin starting to gain attention, and it’s sitting balls deep in shitcoin territory, it’s time to get educated.
LUXCoin (not sure why it is spelled this way formally) is the currency behind the LuxCore project. LuxCore is a smart contract enabled blockchain, with hybrid PoW/PoS, and ‘parallel’ masternodes. RELAX, we’ll explain per usual.
PoW/PoS - They utilize PHI1612 as their consensus algorithm which is a hybrid PoW/PoS algo. It is known to be ASIC-resistant and promotes individual GPU's by allowing a higher hashing rate with less electrical power (and a lower electrical bill). In the end, they hope that that will not only incentivize more people to mine but also decentralize the network more by promoting individual mining rather than pools or institutional mining.
While their PoW algo is dynamic (naturally) with its rewards, the PoS algo offers static rewards (kind of). Basically, all stakers recieve the same size rewards regardless of how many coins are being staked, BUT if you hold more coins in your wallet, then you can receive rewards more frequently….so….kind of static.
Now, they have masternodes, which require 16,120 LUX and just like any other masternode, it is a dedicated server (usually a VPS) connected to the blockchain, gaining more rewards in return for work. Masternodes receive 40% of the PoS block (while everyone else gets the remaining 60%). The 40% is paid randomly to masternode owners on the network.
Now, there are parallel masternodes, which is for vetted governments and businesses who need private blockchains, but want to take advantage of the public, decentralized LuxCore ledger. A bank would be a good example of who would want to implement a parallel masternode (basically a private entity that can interact with the public chain) - ‘parallel masternode’ is just fancy jargon.
One thing that masternodes (not parallel ones) do is assist with the LuxSend feature...when you hear “coinSend” think Dash...hence, mixing. LuxSend is the coin-mixing feature for added anonymity.
Speaking of anonymity, they also implemented SegWit...basically stripping the signature from the input and putting it at the end of the transaction. This effectively prevents the receiver from modifying the sender's transaction ID, which can allow the receiver to mess with the transaction and receive more coins...detaching the data from the transaction. SegWit good. lol
Lastly, nothing groundbreaking, but they allow for multi-sig wallets (this is nothing new, been around for a while)...basic m-of-n, so you need 2 out of 3, or 3 out of 5 signatures to gain access to a wallet’s funds.
All in all, we see how they have some cool tech (kind of) with parallel masternodes...but nothing too crazy providing logic for the hype. They emphasize GPU mining, but meh, sometimes it is good to rely on a balance of institutions and individuals miners. Also, while they have a commercial whitepaper, would love to see the technical one.
Who tf is behind this shit?
John McAfee is the CEO of Lux (lmao) and the co-founder is 216K155...yes, he goes by his damn online username. “He” has 7 years dev experience in blockchain, allegedly, would be nice to see his real name. He is based in Australia with a degree in computer science and multimedia design. But yeah...John McAfee...a questionable character to say the least.
All in all, low-tier shitcoin primarily due to market metrics and an overall meh idea. They have decent marketing (despite the marketcap ranking), so let’s see how they do. We don’t see the real upside to them over say..Ethereum and others.
Hope you learned some shit and make sure to follow us on Twitter.
- Mike and Aaron