What is LUXCoin (LUX)? | Beginner’s Guide
What is LUXCoin (LUX)? | Beginner’s Guide
LUXCoin (LUX) is a coin that is implementing Parallel Masternodes, the PHI1612 hybrid PoW-PoS algorithm, and a “Static” model for staking. The variety of innovative features LUXCoin and Luxcore have to offer have put LUXCoin on the radar for many people in the cryptocurrency world.
Luxcore, the blockchain solutions and services ecosystem behind LUXCoin (LUX), focuses on building a bridge between high-grade security and privacy blockchain products, the massive enterprise-level market, and average consumers. Luxcore consists of LUXCoin, which is meant to be the open source blockchain-based token of value, and the more enterprise-consumer focused closed source products like Parallel Masternodes and LuxGate.
Essentially, Luxcore is offering a platform that will allow users to create products around different use cases in a variety of dynamic ways few other tokens (if any) are capable of.
Luxcore also plans to release future updates such as Segwit, smart contracts, and LuxGate through the Parallel Masternode (PMN) system.
Editor’s note: As the LUXCoin and Luxcore team is rapidly releasing new developments and updates, this article will be updated several times in the following weeks to reflect the new changes. The current state of the article reflects the current functionality and plans of the Luxcore platform.
What is the PHI1612 Hybrid PoW/PoS Algorithm?
The Luxcore platform hails its PHI1612 algorithm as being the “most efficient GPU mining algorithm.” It’s GPU friendly and shoots for higher hash rates without increasing power consumption. The algorithm ultimately seeks to make the mining process more efficient, which will help to make mining more profitable by reducing electricity bills.
The algorithm prevents large mining firms from dominating and centralizing the control over the token. Since LUXCoin is GPU-friendly, it’s much more democratized and decentralized. Lux is also ASIC-resistant.
Luxcore also blends properties from the Proof-of-Work and Proof-of-Stake algorithms. Referred to as “Proof-of-Stake 2”, this protocol allows for the distribution of staked rewards regardless of how much a user is staking.
What Are Parallel Masternodes (PMN)?
Parallel Masternodes (PMN) can be pretty complicated, but the technology focuses on addressing the reliability and security needs of enterprises and institutions.
The Parallel Masternodes feature is built on i2pd Technology and SAM Protocol, which gives Lux’s security a substantial boost.
This private network essentially allows users to create third-party applications on top of the blockchain in a way few other tokens are capable of. The parallel masternodes are only going to be available to vetted and verified government institutions and businesses in order to reduce the potential for any malicious players. All wallets and transactions on the Parallel Masternodes are encrypted.
What is LuxGate?
LuxCore considers LuxGate a “technological marvel in the blockchain space.”
This technology will allow validated blockchains to communicate with each other, creating a constructive bridge for various blockchains (such as Bitcoin and Ethereum) to engage with each other in a variety of ways.
LuxGate enables the interaction with centralized organizations such as banking institutions with the Parallel Masternodes private network. Since LuxGate and PMN can work across-algorithm and are system agnostic, Luxcore has a strong chance to shake up traditional banking transaction systems.
A sample use case for this project is as follows (from the Luxcore product information page):
“if an institution has two layers of firewall security A & B, with each layer of different security strength, with A at 300 points and B at 200 points (a total of 500), with LuxGate enabled, each level will have a combined strength of 500, bringing the total difficulty to 1000 points.”
Luxcore plans to work with private institutions to help them set up Parallel Masternodes and grow the network while maintaining high-security standards.
Taking a look at the LUXCoin Github and Discord, you’ll see a rapid progression in development and updates. The team plans to launch their Parallel Masternodes (PMN) in Q1 of this year and will start integrating enterprise-level businesses in Q2.
LUXCoin Trading Information
Instead of an ICO, LUXCoin did a “pre-mine” where they mined 5% of the total supply.
Currently, LUXCoin can only be traded on Cryptopia.
LUXCoin seems to be a very ambitious project that could significantly shake up the world of traditional banking services. Its Parallel Masternodes (PMN), PHI1612 algorithm,
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ABOUT THE AUTHOR
ABOUT THE AUTHOR
Alex Moskov is the Founder and Editor-in-Chief of CoinCentral. Alex leans on his formal educational background (BSBA with a Major in Finance from the University of Florida) and his on-the-ground experiences with cryptocurrency starting in 2012. Alex works with cryptocurrency and blockchain-based companies on content strategy and business development. He privately consults entrepreneurs and venture capitalists on movements within the cryptocurrency industry.
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