On social media, there is a busy chat about a variety of crypto coins. Bitcoin usually plays the main role in this. Whether some new cryptocurrency with this hopeful ‘killer’ application makes people’s emotions revive. After all, every possible new hype can yield money, a lot of money! The facts then do not matter. That is a concern for tomorrow, and by that time the ‘bags’ have usually been disposed of for a long time. It is a fast and relentless world, in which fake news is elevated to the standard. That this also attracts many scammers may be clear. So it is, especially if you are not completely at home in this world, you have to read in and if possible check the facts of all oh-so-beautiful claims. Despite the hypes, there are few projects that have actually built a properly functioning system that satisfies and is truly usable.
What is a Gulden Coin
Gulden (NLG) is one of them. The Gulden cryptocurrency has been around since 2014 and therefore falls outside the daily list of new hype coins. Often, however, newcomers and self-appointed crypto experts ask the question of what is so unique about Gulden. The latter also sometimes have no idea, perhaps because Gulden is not seen as a hype currency, so not as potentially ‘fast money’, and in that capacity there is also little on the retina of fake news minded traders. And that could just be a ‘unique selling point’ for Gulden. Entry to the business that prefers a stable environment that one can build on with peace of mind. Now and in the future.
That is what Gulden apparently also recognized and they are now heading for the new website, which has gone live since January 1, 2019, clearly more towards social agencies and companies. After all, the Gulden blockchain can be used and deployed for so many more applications than just crypto money. The time is also ripe for it. The blockchain technology is still developing, but with Gulden’s second generation blockchain, there is a solid basis for building on.
We usually generalize about the crypto-coin Gulden. But to clarify it. You have the Gulden blockchain, that is the rails, and the wallets or the trains. It is clear that there are several trains, so applications on that Gulden blockchain rails can drive. The situation is currently such that Gulden.com BV develops the wallets. These are therefore also owned by Gulden BV. In addition, they also work on the blockchain. However, this has been placed under a public license, which means that every authority or company can get started.
Let’s take a look at six specific claims on the new website of Gulden.com to see why Gulden is really that good:
Presented fact 1: One of the safest blockchains
In the crypto world, this claim means whether money, assets or data that is entrusted to the blockchain can be stored and stored there in a safe and unchangeable way. In theory, every system can, of course, be cracked, but “safe” in blockchain technology means that it is very difficult or very expensive to change or corrupt the blockchain data, let alone profitable to do so.
The best-known form of a blockchain attack is the so-called “double spend a> 50% attack”. A malicious person or group of people will attempt to obtain more than 50% of transaction approval capacity (ie with PoW, ie mining capacity), with a 1 in 2 chance that the attackers will be able to issue crypto twice without the other transaction approvers being there. what can do or even notice something?
Proof of Work (PoW)
The transactions of the blockchain can be approved in different ways. The best-known method is PoW such as Bitcoin. used. The miners are charged with approving the transactions and the safety is based on a large amount of hardware and costs required to own> 50% of the mining power. This, of course, only applies to the large coins. Here you will find an overview of how much it takes to carry out a> 50% attack for one hour via mining powering. For Bitcoin costs that according to that site more than $ 300,000 but additional problem is that it is almost impossible to purchase/rent so much mining hardware. Although there is a lot of miniature equipment available due to the current price drop, it seems physically impossible. So for that matter bitcoin is very safe.
A reasonably large currency such as Bitcoin Gold is much worse against the file. Only $ 780 costs it to carry out a> 50% attack there. And there are hundreds of coins that can be attacked for a decade.
Proof of Stake (PoS)
PoS is another method to approve the transactions in a blockchain network. It is not miners but the owners of the coins that approve transactions. If you, as the owner of the coin, “lock” your coins and leave the wallet open, you participate in the so-called “Stakes” and the number of coins and how long the coins are already steady weighs in how important you are in that process. Here too, a> 50% attack is possible if you hold> 50% of the number of coins that are currently participating in the “stake process”. You can also try to make a double spend. The advantage of this method is that it is actually more difficult to set up the attack because you have to have a fair amount of coins.
You can simply say that with PoS coins with a high market cap the system functions safely, but with coins, with a lower market cap it is possible to carry out a double spend via a> 50% attack but at considerable costs.
In general, we can say that a PoS blockchain is more resistant to a> 50% attack than a PoW blockchain but both systems are not strong when the coin is small to very small.
And then Gulden uses PoW2, a self-developed transaction approval mechanism that uses a combination of PoW and the so-called “Witness” system. Transactions must be approved by the PoW miners and by
Witness accounts are accounts in which Guilders are held for a shorter or longer period. The time span is at least 1 month to a maximum of 3 years. These Guilders can no longer be moved by the owner during that period and have in fact been put out of circulation. The more Gulden are placed in the witness account and the longer the duration of the lockout period the heavier the account.
The approval of a transaction is thus determined by two mechanisms, both PoW and Witness. In order to be able to carry out a> 50% attack on the Gulden blockchain, it is necessary to attack both systems. And to get as much chance of success for a double spend as with the PoW or PoS systems it is, therefore, necessary to not control> 50% of the mining power (PoW system) or> 50% of the number of Stake coins (PoS). system) but of both systems more than 71%. (0.71 * 0.71 = 0.5 so 50% chance).
At Gulden, the PoW mining capacity is not very large at the moment. With a low amount, sufficient mining capacity can be rented to achieve more than 71% of the mining capacity for one hour or longer. But the witness system is a different story. Approximately 72 million guilders were put into witness at the time of this writing in 694 different accounts with a total face weight of 576,000,000.
In order to get a 71% majority in witness weight, you will thus have to achieve at least a witness weight of (1 / 0.71) * 576.000.000 = 812.000.000 and spread this over (1 / 0.71) * 694 = 977 accounts. This can be done, for example, by creating 1000 accounts in which 230,000 guilders are secured for 1 month. That is half of all Gulden that is in circulation. It can also be done with fewer Guilders, but then the attacker must lock the Guilds longer in witness. For example, secure 1,000 accounts with 100,000 Guilders for 3 years. That gives the same total network weight.
From the above, it appears that it is an impossible task and certainly not attractive financially. It is similar to robbing the bank of which you yourself are the largest shareholder. More about that in our article about safety.
The fact presented: one of the safest blockchains is correct.
Presented fact 2: 0.01% of the energy consumption of Bitcoin.
Pay attention! All numbers listed here are or fall in numbers of hash rates/type miners etc. and that can change. Figures are based on the dates of 6 January 2019
The PoW system of bitcoin still has one major disadvantage and that is that it uses a lot of energy for all mining activities. At the time of writing, this is about 46TWh per year according to this site that does thorough research. Gulden now has a hash rate of 300GH / s. If we count with the modern Antminers L3 + (800Watt for 500MH / s) that electricity uses approximately 480 kW. That is about 4.2 GWh per year. This 4.2GWh is 0.0091% of the energy consumption of Bitcoin.
We already placed a nice comparison with Tesla before. For more information about energy consumption and Gulden read this article.
The presented fact: 0.01% of the energy consumption of Bitcoin, is correct.
Presented fact 3: More than 100 affiliated companies.
Gulden asserts that there are at least 100 places where you can pay with Gulden. Companies sign up themselves or are approached by community members with the question of whether they want to accept Gulden as a payment method. The registered companies are kept on Guldenmap. 169 companies are being raised here. It is not possible for the writer to check all the companies, but visits from the websites have shown that at least half of the mentioned number is in one way or another on the website that they accept Gulden. Some of the webshops only with the payment options. There will also be a number of companies that accept Gulden but do not specifically mention this on their website. There will undoubtedly be companies that have withdrawn the acceptance of Gulden due to lack of patronage, but it is quite plausible that the mentioned 100 companies are indeed present.
The fact presented: More than 100 affiliated companies, is correct.
Presented fact 4: More than 100,000 users.
This is also a figure that can not easily be verified. Gulden is simply a decentralized project and nowhere is it recorded who uses Gulden.
Users are actually a mistaken word because users mean that people “use” the product. But in the crypto world, there is virtually no question of that. At the most, they buy and sell the coins and possibly keep them, the so-called “Holden”. But usage is therefore rarely mentioned. Who has bought or paid for something with a crypto coin? Crypto-owner would be a better name but we will use the word “Users” in the rest of the story. Yet there is quite a bit to say about the numbers of users. Thanks to a study by Kantar TNS (the former NIPO) among 35,040 consumers, we know that in August-September 2018, approximately 100,000 Dutch households owned Guilders. This number, therefore, does not include foreign users because the survey covered only the Dutch territory. From the download data of the wallet software, we know that there have been more than 175,000 unique downloads of the Gulden wallets. The number of downloads obviously exceeds the number of users from the above survey, but that is not surprising. Probably there are many users who run a mobile wallet and a desktop wallet. Many people also download but decide to invest nothing. We also know that about 30% of downloads come from abroad and 70% from the Netherlands. All in all, it is quite plausible that there are more than 100,000 Gulden users.
The fact presented: More than 100,000 users, is correct.
Presented fact 5: 420 million Gulden in circulation.
This is easy to check fact via the actual explorer’s API. Dactual is an independent explorer. It is a bit like what you meant by “in circulation”. There is also a remnant premise and if you calculate that you will get 482 million.
The presented fact: 420 million Gulden in circulation, is correct.
Presented fact 6: 72 million (17%) Gulden in Witness.
This is easy to check fact via the independent explorer Dactual.com. The 17% mentioned is then calculated from the 420 million Gulden in circulation.
The presented fact: 72 million (17%) Gulden in Witness, is correct.
To sum up, we can say that the Gulden blockchain offers a solution, with unprecedented safety against very low energy consumption. The Gulden, as currency, knows a large number of fans, users and shopkeepers behind them. The basis for further growth is there. It is, therefore, a matter of time that agencies or companies also start using this technology and develop new applications.