Electroneum (ETN) is a cryptocurrency that can be mined with a smartphone, requiring almost no technical knowledge or prior experience. This sets it apart from other cryptocurrencies (like Bitcoin) which require expensive hardware and technical know-how to mine.
Electroneum’s unique mobile mining experience allows anyone with a smartphone to earn ETN coins by letting the miner app run in the background.
It was designed specifically with mobile users in mind, thereby appealing to a potential market of 2.2 billion smartphone users around the world. Unlike other cryptocurrencies, Electroneum has a user-friendly, beginner-oriented interface that allows users to seamlessly transfer ETN coins between one another, check their balances, and mine coins.
Being a cryptocurrency, Electroneum is created, held, and spent electronically, and has no physical coins. And since it is guarded by the blockchain, it is not controlled or regulated by any no one person, company, or government.
Instead, transactions are processed and validated by a network of thousands of computers around the world (called miners) that must all agree on the account balances of every user (more on mining below). Mathematical functions safeguard every aspect of the process and make sure that no one can game the system or commit fraud.
The Electroneum blockchain officially launched on 1 November 2017 and the app wallet launched on 13 December 2017. The mobile miner launches on 5 March 2018.
Mining Electroneum With a SmartPhone
Electroneum has a major advantage over other cryptocurrencies in that it can be mined using a smartphone. Traditionally, mining could only be performed on a computer with lots of processing power. However, the Electroneum team has created an algorithm that allows anyone with a mobile phone to mine effectively – thereby making it possible for millions of smartphone users around the world to learn about cryptocurrencies and mine their own coins.
To start mine Electroneum coins, download the app to your phone and create an account. The app will mine in the background while you perform other tasks. You can also play a mining game to earn slightly more coins.
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What Makes Electroneum Different from Regular Money?
Electroneum (and other cryptocurrencies) is decentralized, meaning that it is controlled and regulated by a network of computers all over the world who have no affiliation with one another. Therefore, no person, company, bank, or government can control Electroneum or create more of it.
Because Electroneum is held digitally, you can send money to any person in the world with an Electroneum wallet (more on this later). No bank regulates spending so there are is no long waiting time or high transfer fees required. A typical transaction takes about 10 minutes to spread through the network and to be validated by the mining network – making it much faster than other inter-country money transfer methods.
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Who Created Electroneum?
Electroneum was created and developed in 2017 by a group of developers based in London, UK and led by CEO Richard Ells. In September/October 2017, the company pre-sold ETN coins to investors through an initial coin offering (ICO) in order to raise funds for further development. The Electroneum blockchain (decentralized ledger system) went live on 1 November 2017 and put the coin into circulation. The Electroneum app wallet went live on 13 December 2017 and provides a user-friendly way of sending and receiving ETN.
The company also created the Electroneum app used to mine Electroneum, manage your account, or send/receive Electroneum coins.
How Does an Electroneum Account (Wallet) Work?
Electroneum is held in a so-called cryptocurrency wallet – defined by an account number (called the public wallet address) and two passwords (called the private view key and the private spend key). All three keys are long strings of letters and numbers, typically 64 characters in length.
When you first buy Electroneum coins (say 100 coins), every computer in the mining network agrees that your account number is credited with 100 Electroneum coins, thereby providing a faith-based system for the currency. A wallet consists of the 3 keys above that represents a database entry on every computer in the mining network. A person that can provide all 3 these keys are considered to be the rightful owner of the coins and are allowed to spend it.
To spend Electroneum coins, you can send it to the account number (public wallet address) of the receiving person. The network will then record that coins were debited from your account and credit it to the receiver’s account. To receive coins, the sender must send it to your public wallet address, and the same process is followed.
Who Creates Electroneum Coins?
New ETN coins enter the system as rewards given to miners. Each time a miner checks and verifies a certain amount of transactions, he/she receives a reward in the form of Electroneum coins. After receiving the reward for his work, the miner can then spend those coins or exchange it for other currencies. This process effectively introduces new coins into the system on a regular basis.
Anyone can set up their computer to be a miner.
Is It Safe to Use?
A large amount of cryptography and mathematical safety standards is built into the system to safeguard it against fraudsters. Every computer in the mining network must conform to these standards or risk being rejected by the rest of the network.
It is therefore entirely safe to use, and only the person in possession of both the public key (account number) and private key (password) of an account – i.e. you – can spend the money in that account.
Since Electroneum accounts (wallets) consist of strings of random characters, no personal information is tied to the account. Although every computer in the network will be able to see all transactions from a specific account, they won’t be able to link that account to any specific person. This makes Electroneum transactions virtually anonymous.
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Electroneum is a giant leap forward in the cryptocurrency market, making it possible for anyone with a smartphone to participate. This has the potential to create viral growth and mass adoption.