The beginning of 2018 had seen a sudden downfall in the world of cryptocurrencies. The most popular of them all, Bitcoin, has seen an enormous fluctuation since the start of the year. Nevertheless, many crypto enthusiasts, as well as commoners, are not holding themselves back from investing in cryptocurrencies amidst sudden downfall in the market. And now, the announcement of investment on yet another cryptocurrency ‘Eco’ from one of the biggest tech moguls has proved it all.
Uber co-founder Garrett Camp recently announced that he would be investing in a new cryptocurrency called Eco. Although economists are stating that cryptocurrencies have no future, people are still investing in them and the market is seeing the emergence of new currencies one after another. So, what led Camp to invest on yet another cryptocurrency? What made him motivated enough to invest in Eco? Let’s have a closer look in this article.
Mission: A Rival Project
Camp aims to challenge the rivals such as Bitcoin and Ethereum with the introduction of Eco. The billionaire tech mogul is hoping that this new cryptocurrency will be able to challenge Bitcoin. This new project aims to fix technical as well as other functional problems which are prevalent in other cryptocurrencies. Analyzing the flaws in the existing virtual currencies, the project aims at bringing revolution in the world of virtual currencies.
Eco Tokens Are Available to All
A single institution or an individual will not control the currency but instead, it will be distributed to the mass. Garrett Camp announced that one trillion tokens would be issued, of which half of the tokens would be distributed to general people. Of the remaining half, twenty percent will go to universities, and thirty percent will be in control of the company; divided between partners, advisors and management team, that is responsible for monitoring and maintaining the network.
The company also announced that it would not raise any money in developing the project. As most of the current virtual currencies are dealing with legal issues regarding ICO, this project aims to remain away from that mess.
Improved Transaction and Security
Only verified network nodes will be used in transaction confirmation and network support. So, you can’t become anonymous while trading or doing transactions in Eco’s network. This can help in detecting frauds.
The verified network nodes will be in direct contact with different universities and research centers. Hence, the problem of server attacks – as these are largely prevalent in other cryptocurrencies like Bitcoin – can get drastically reduced.
However, using the verified nodes for all the transactions, the system will not be completely decentralized like Bitcoin. The system will lie somewhere between centralized and decentralized system. Neither, it will be fully centralized nor fully decentralized.
Low Energy Consumption in Mining
As we have seen in certain cryptocurrencies like Bitcoin, there are a group of miners in the network using huge amount of electricity to mine Bitcoin. The consumption of energy is so high that the costs can rise from thousands of dollars to millions.
Camp decided to solve the problem of high energy consumption and came up with the new idea. Camp does not want to form a network of miners using huge power. Hence, in this system, there will not be any network of miners using large amount of electricity.
Birth of Eco Foundation
To make the project successful, Camp has announced that a new non- profit organization in the name of Eco Foundation will be formed. He has also declared that he is investing $10 million of his own and some amount from a company named Expa. This organization will be solely focused at spreading the virtual currency around the globe and overcoming the different challenges that might be faced from rivals.
Although the position of members hasn’t been filled yet, the organization has announced that a total of nine people will be in the board. The members will be from different geographical locations with vast intellectual diversity.
This new type of crypto currency is expected to bring a revolution in the world of virtual currencies. The new currency is at its infant state now but has so much potential in it. The company recently said that it is open to get any sort of feedback and suggestion regarding the growth of it. The founder is so optimistic about its growth and is hoping that one day it will rule the market.
If you are just starting in the world of virtual currencies, Eco could be a good choice for you. If you are not a beginner in this field, still, it might be a good choice for you. Eco seems to be the bridge between the centralized systems like banking system and decentralized systems like Bitcoin. However, as with any cryptocurrency, we can only speculate and its future potential should be taken with a grain of salt.