What is Cryptonite (XCN) Crypto Beginner’s Guide
Cryptonite is a blockchain-based, decentralized payment network that utilizes computing power to mint new coins. Cryptonite can be used to send cryptocurrency, or digital money, all around the world at any time over the Internet. The network is based on the popular coin Bitcoin, and overall is very much like Bitcoin except that is has a different mechanism for maintaining address balances, and it has innovative new features.
These new features include the account tree, the mini-blockchain scheme, and next generation scalability. Cryptonite boasts the first ever implementation of the light-weight mini-blockchain, and has a new system for the mining of its coin using the account tree and coinbase accounts. It is also the first network to implement withdrawal limits, allowing users to set a limit on the amount of coins they can send from a single address. With these features, Cryptonite stands out among the ever-growing selection of crypto coins.
The Account Tree
Cryptonite uses a self-contained balance sheet called “the account tree” in order to maintain address balances, instead of relying on transactions. On Cryptonite, the final balance can be easily checked without a lot of computational effort, because the final balance of every address is stored in the account tree, and every node within the network has an exact copy of the account tree. The account tree is encrypted, which lends to additional security on the Cryptonite network. Through this revolutionary balance sheet, Cryptonite not only ensures that information is secure, but also ensures that final balance is transparent and open to all users.
The account tree is also an important aspect to the mining that takes place along Cryptonite’s network. Mining is the process used to control coins, and miners are rewarded for solving computationally difficult problems. Mining also confirms transactions. In Cryptonite, all block rewards for miners are subtracted from the balance of the coinbase account, a special address that exists in the account tree, which controls the block rewards that are paid out to miners.
Cryptonite and the Mini-blockchain Scheme
Another new feature provided by Cryptonite that is revolutionary is the mini-blockchain scheme. Cryptonite is the first blockchain network that has implemented this scheme. With a decentralized balance sheet approach, nodes within the network never have to spend days and days synchronizing. The scheme is designed for the maximum possible scalability, which is achieved by allowing all transactions to be forgotten by the network after they are old enough; Cryptonite’s blockchain won’t be bloated with transactions that took place years and years ago, which clears up room to focus on new transactions and which deletes unnecessary information. Most crypto networks hold on to all transactions no matter how long it’s been.
With the mini-blockchain scheme, new nodes are enabled to synchronize with the network extremely quickly and efficiently, and deleting old transactions frees up disk space that could be utilized. In this way, Cryptonite becomes even more decentralized, as the scheme erases the need for nodes that are only capable of handling the full blockchain.
With the account tree and the mini-blockchain scheme, Cryptonite is a viable alternative to many other cryptocurrencies, and represents a new coin with revolutionary protocols that are implemented within its network. Although there are many alternatives to Bitcoin, Cryptonite truly stands out as a decentralized and efficient coin.