BlogNov, 2018

choosen

An Overview of Our First 5 listed Coins

The first five coins we chose to list were chosen so intentionally since they are five reputable and trusted coins, each with their own unique aspects. Whether you're a newbie to the crypto trading game or a seasoned vet, we hope this quick overview of our first five listed coins will help you learn how you can use them on our platform!

Ethereum

Ethereum is the second largest cryptocurrency by market capitalization. Unlike Bitcoin, which is primarily a peer-to-peer digital currency, Ethereum is both a cryptocurrency and a blockchain platform for developers. The platform allows developers to build and deploy decentralized applications on top of the Ethereum blockchain. It's native digital currency is Ether (ETH). It was launched in 2015 by Vitalik Buterin.

The Ethereum platform provides developers with the code and technical tools needed to build decentralized applications. On the platform, Smart Contracts are used to build and run Decentralized Applications (DApps).

One of the salient features of Ethereum is the Ethereum Virtual Machine, a Turing complete software that runs smart contracts. The EVM allows developers to easily and efficiently build DApps without having to create a new code from scratch. Using the ERC20 and the eRC721 standard, developers can also launch their own crypto coins on the Ethereum blockchain. Since its launch, the platform has hosted hundreds of ICO projects. Some ERC20 standard projects have gone ahead to become high-value tokens with practical use cases, like EOS.

Consensus mechanism

Like Bitcoin, Ethereum uses the puzzle-solving Proof of Work algorithm. Known as Ethash, this algorithm safeguards the network from centralized mining, essentially locking out expensive, specialized mining rigs from the mining process. Miners compete with each other to confirm and verify transactions. They are rewarded with 5 Ether every time they generate a block. Mining is important as it fights fraud in the Ethereum blockchain.  Although the Proof of Work consensus seems to work for Ethereum, it has its own flaws, including excessive use of electricity. Ethereum developers are keen on adopting other consensus mechanisms like Proof of Stake, to overcome the challenges of the current consensus mechanism.

How the wallet works

If you’ve mined some Ether, you’ll need a secure place to store them and that’s where a wallet comes in. Ether can be stored in a number of wallets, although the most popular one is MyEtherWallet. The wallet doesn’t store data or private keys on its servers but on your computer. It’s popular because of its enhanced security features and ease of use. Other wallet options for Ether include hardware wallets like Trezor and Ledger Nano S. One thing that is of great appeal about Ethereum wallets is that you can store as much ERC20 coins as you wish as these wallets support those. Whichever wallet you chose to store Ether, you’ll quickly notice that they work in a similar way. Despite their different features, their main mission is to secure your coins.

Deposit/withdraw process

When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select Ethereum. If you’re sending Ether from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your Ether is locked up in an exchange, log in into the exchange, and paste the address as the withdrawal address. The transaction shouldn’t take long before it’s completed. The withdrawal process is similar, only that you’ll need to input your destination wallet address. Once you’ve withdrawn ether from ATAIX, you will be sent a confirmation email with a link on the email address that you used to register on the website. You will need to open this email and click on the link to confirm that the withdrawal process was indeed initiated by yourself. Once this is done, the ether will be sent to your destination wallet.

Bitcoin

As the oldest and first cryptocurrency to emerge, Bitcoin is the most popular blockchain project. It was introduced as an alternative to fiat currencies by an anonymous inventor, Satoshi Nakamoto.

Since its launch in 2009, it has evolved to become the financial behemoth that it is today. At its peak in December 2017, a unit of Bitcoin (BTC) was trading at a historic price of $20,000. Because of its high value, Bitcoin is known more as a store of value than as a means of payment.

Bitcoin’s main goal was to decentralize the global financial sector. The underlying technology is the blockchain. Blockchain keeps a digital ledger of all transactions and is distributed to many computers, meaning that it cannot be altered by anyone and is not controlled by any central authority, like a central bank. Bitcoin’s white paper promises to deliver fast, low-cost, global payments that are safe and secure.

Consensus mechanism

Bitcoin uses a consensus mechanism known as Proof of Work algorithm. In its basic form, this mechanism enables users to verify and confirm all transactions on the blockchain to prevent double spending of coins.

The process of verifying and confirming transactions is commonly known as mining. Basically, miners solve hard mathematical puzzles to create blocks of transactions which they attach to the blockchain. They get rewarded with Bitcoins every time they generate a block. Usually, the reward is given to the miner who runs the longest chain in the blockchain.

How the wallet works

Cryptocurrencies like Bitcoin are digital assets and are stored in digital wallets. To store Bitcoin, you’ll need to install a digital wallet that’s compatible with BTC. The default wallet for BTC is Bitcoin Core. Digital wallets come in different kinds but serve the same purpose. Some are physical devices, while others are paper, software, mobile or online wallets. The wallets keep your private key that enables you to use the BTC address of your coins in the Bitcoin blockchain. The private key essentially allows you to sign off your transactions, or, to spend your coins.

Deposit/Withdrawal Process

When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select Bitcoin. If you’re sending BTC from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your BTC is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The transaction should take about an hour to confirm on the blockchain. Once it is confirm, the funds will appear on your ATAIX wallet. The withdrawal process is similar, only that you’ll need to input your destination wallet address. Once you’ve withdrawn BTC from ATAIX, you will be sent a confirmation email with a link on the email address that you used to register on the website. You will need to open this email and click on the link to confirm that the withdrawal process was indeed initiated by yourself. Once this is done, the BTC will be sent to your destination wallet.

Stellar

Stellar is a cryptocurrency that allows anyone to make cross-border payments using any pair of currencies.  The platform forked from Ripple and kick started its blockchain journey with a $3 million loan from Stripe. Stellar’s native cryptocurrency token is Stellar Lumens (XLM). The cryptocurrency is known for fast transaction speeds of between two to five seconds. It uses distributed ledgers to connect banks, people, and payment systems. Launched in 2014 by Jed McCaleb and Joyce Kim, the project is backed by Stellar.org, a nonprofit.

The Stellar cryptocurrency is based on an open source, distributed ledger system that’s maintained by the Stellar Consensus Protocol (SCP). The consensus mechanism allows for flexible trust, decentralized control and enhanced security. The SCP is built around a unique Federated Byzantine Agreement model that allows it to support over a billion accounts and 1000 transactions per second. Stellar’s consensus model differs from other Byzantine models because it allows for open network participation to drive the growth of the network. One thing about Stellar Lumens is that they are not mined like Bitcoins. Instead, all Lumens were pre-mined in a genesis block, and a total of 100 billion XLM exist.

How the wallet works

Stellar Lumens are stored in digital wallets that are compatible with the Stellar blockchain. A wide range of wallets, including desktop, mobile, hardware and web-based wallets support Stellar Lumens. Unlike most other wallets that are free to use, Stellar wallets need every user to have at least 20 Lumens before they can be allowed to create a wallet. They say this safeguards the platform from spammers. You cannot use fiat currencies to buy Stellar Lumens so you’ll need to first buy BTC or ETH and exchange it later with XLM at an exchange. There are many services that allow you to directly buy BTC or ETH using Fiat currencies, Coinbase is a prime example of those.

Deposit/Withdrawal Process

When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select XLM (Stellar). If you’re sending XLM from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your XLM is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The next step is inputting the destination tag. XLM has a little nuance in that for this cryptocurrency, rather than having a wallet for each user registered on ATAIX, we have one wallet for our entire user-base. The destination tag serves to differentiate transactions done by each user and that the XLM held in the shared wallet is properly assigned to its rightful owners. Hence, the next step in the deposit process is to copy the destination tag from ATAIX and paste it in your wallet, in the Destination Tag section. Once this is done, you can hit send from your wallet and the XLM should appear in your ATAIX account in absolutely no time.

Withdrawing XLM to your own XLM wallet from ATAIX is very similar, except you don’t have to worry about Destination Tags. You can leave that field empty, or put any random number. You’ll get your XLM anyways, as long as the withdrawal address is entered correctly.

Cardano

Like Ethereum, Cardano is a smart contract-based blockchain platform. Based on peer-reviewed research and scientific philosophy, the platform allows developers to build secure decentralized applications. Looking at the enhanced security and privacy features that Cardano brings to the table, it’s easy to see that the platform was built with the end-user in mind.  The Cardano blockchain runs the ADA cryptocurrency. Cardano’s vision is to take banking systems to the developing world, where majority of people lack a basic bank account. This explains why its developers are keen on building a project that adheres to global financial regulations as they seek to reach the unbanked in all corners of the world. The Cardano project was created by Charles Hoskinson and Jeremy Wood in 2015.

The Cardano team minted 45 Billion ADA when the project kicked off. Unlike Bitcoin or Ethreum which use the Proof of Work protocol to add new coins into the ecosystem, Cardano uses a unique consensus algorithm known as Ouroboros, a Proof-of-Stake mechanism. Their consensus model revolves around nodes which have to confirm transactions to generate new blocks. In a proof of stake protocol, coin holders set aside coins which they “stake” to be allowed to confirm transactions. Cardano miners earn ADA for their work in the blockchain.

How the wallet works

Daedalus is the official and the only wallet for ADA coins. It’s an open source multi-currency digital wallet that was created by the Cardano team. Available for both MacOs and Windows operating systems, this wallet allows users to freely exchange between different currencies that the wallet supports. With the Daedulus wallet, you won’t need to worry about the security of your ADA coins. The Cardano team is also expanding the wallet to support Bitcoin and Ethereum Classic.

Storing your coins in this wallet is easy and straightforward. You only need to download and install it in your PC. Mobile users will have to wait longer as there’s currently no mobile wallet for ADA. One of the key benefits of the Daedulus wallet is that you get access to tons of applications that have been built by the Daedulus community. Like with most altcoins, there’s no way to directly buy ADA using fiat currencies. You’ll need to first buy BTC or ETH and exchange them for ADA.

Deposit/Withdrawal Process

When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select ADA (Cardano). If you’re sending ADA from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your ADA is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The transaction shouldn’t take long before it’s completed. The withdrawal process is similar, only that you’ll need to input your destination wallet address. Once you’ve withdrawn ADA from ATAIX, you will be sent a confirmation email with a link on the email address that you used to register on the website. You will need to open this email and click on the link to confirm that the withdrawal process was indeed initiated by yourself. Once this is done, the ether will be sent to your destination wallet.

Ripple

Ripple presents itself as both a cryptocurrency and a platform. The Ripple platform is an open source software that allows for fast and low cost transactions. Ripple runs a network of financial institutions like banks and payment service providers that use the Ripple network to offer frictionless payment solutions. XRP is Ripple’s native cryptocurrency. Ripple was first released in 2012 by Jed McCaleb.

Most cryptocurrencies tend to use the two most popular consensus algorithms; Proof of Work or Proof of Stake. But ripple uses none of these. Instead, it uses its own unique algorithm known as Ripple Protocol Consensus Algorithm. It’s a technically different protocol compared to that of Bitcoin or Ethereum. Essentially, there’s no mining involved as all the 100 billion XRP coins were mined at the launch of the project.  Ripple validates transactions and recommends to its users a list of trusted nodes that can validate their transactions.

How the wallet works

From software, hardware to paper, mobile and web-based wallets; you’ll be spoilt for choice when it comes to storing your XRP coins. There are many wallets out there that support XRP. Unlike Bitcoin wallets which are free to use, XRP wallets aren’t. Ripple requires all users to have a minimum of 20XRP to book their wallet. It’s a security feature that they say prevents spam. The XRP wallet functions about the same way as any other cryptocurrency wallet. They secure your private key, allowing you to use the public key, or address of your coins on the Ripple blockchain.

Deposit/withdrawal process

When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select XRP (Ripple). If you’re sending XRP from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your XRP is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The next step is inputting the destination tag. XRP has a little nuance in that for this cryptocurrency, rather than having a wallet for each user registered on ATAIX, we have one wallet for our entire user-base. The destination tag serves to differentiate transactions done by each user and that the XRP held in the shared wallet is properly assigned to its rightful owners. Hence, the next step in the deposit process is to copy the destination tag from ATAIX and paste it in your wallet, in the Destination Tag section. Once this is done, you can hit send from your wallet and the ripple should appear in your ATAIX account in absolutely no time.

Withdrawing XRP to your own XRP wallet from ATAIX is very similar, except you don’t have to worry about Destination Tags. You can leave that field empty, or put any random number. You’ll get your XRP anyways, as long as the withdrawal address is entered correctly