New blockchain projects are springing up all over the world at ‘an alarmingly fast pace. So much so that new innovation is occurring by the second daily.
We reached out to Coinbazaar, one of the second-generation blockchain projects to talk about their token Magnetocoin and the projects’ importance to the environment. Co-founders, Shalendra Vermani and Sanket Manocha told everything we needed to know and more! Here is what they had to say.
Shalendra Vermani Co-Founder Coinbazaar
Sanket Manocha Co-Founder Coinbazaar
What is the general idea behind Magnetocoin?
“General Idea behind Magneto coin “an Internet currency” is to create a system where people will have a complete control over their MGT assets/money, transactions are instant, with near-zero cost payments”.
MGT is a peer-to-peer and open-source global payment network that is fully decentralized that enables payments to anyone in the world without the intervention of any third party. Blockchain-backed algorithm secures the network and results in much faster confirmation time and improved storage efficiency than the leading cryptocurrencies.
Magnetocoin tackles the complex difficulties of trust-based commerce systems by providing transactions that are rapid, secure, and irreversible and can be verified by anyone on the network.
Please, can you tell us more about Coinbazaar’s peer-to-peer payments model?
Coinbaazar’s Peer to Peer model works on collaborative efforts of person-to-person contact and advanced Cyber Technology. Vendors/Advertisers create offers for buying or selling bitcoins for more than 300 + payment methods around the globe.
When traders open a trade to buy or sell bitcoins in their selected payment method, there the escrow system comes into play that ensures the safety of funds for both buyers and sellers until the trade is complete.
How did Coinbazaar start? What was the “aha” moment that led to its founding?
The idea of Coinbaazar was conceived by Shailendra and Sanket, In the year 2018 after market research we came to the conclusion that people are generally buying and selling bitcoins on derivative exchanges, and paying huge fees, and because of Govt.
Regulations they are facing trouble in cashing their bitcoins when in need, at that time many countries were skeptical about regulations of exchanges, Take an example of India and Venezuela.
So we thought of creating a platform, where people can buy and sell bitcoins with 100’s of payment methods without being dependent on centralized exchanges, Finally, the development of coinbaazar started, keeping in mind we have to make a platform where the fees on buying and selling could be the lowest in the world.
We can proudly claim we have reached the level of being one of the lowest fee exchanges in the world.
How has the Coinbazaar journey been so far?
It has been nothing short of a roller coaster ride, but in this ride, the lows were more exciting than the peaks. It was because of the lows our adrenaline kept pumping and pushing us to achieve the highs.
The most important aspect of this journey has been that we found the right kind of people and were able to build a formidable team that consists of developers, marketers, and moderators, who worked tirelessly, to make our journey a success.
It was a dream which was dreamt all through the journey and it has magnified to an extent that we are now in a position to deal with any challenges that would come our way.
Please, can you tell us more about green cryptocurrencies?
Green Cryptocurrencies are generally referred to nowadays, that use less computational power for the transaction to be successful. With the fast advancement in technology, many organizations are finding newer ways to go for environment-friendly cryptocurrencies.
Therefore, scrypt mining is used instead of miners such as SHA 256, resulting in the elimination of Bitcoin’s scalability challenge forever. Thereby ending the dependability & monopoly of mining farms.
People won’t need that exorbitantly priced fancy & high-tech. miners/machines. This is when we decided to introduce magnetocoin (MGT). Now people can easily mine MGT using their computers/Graphic card.
Consequently, making MGT one of the most environment-friendly cryptocurrencies, virtually leaving low “CARBON FOOTPRINTS” (Reason why Elon Musk retreated from his earlier stand of backing the bitcoin).
What are the various challenges that you guys met on the ground in the cryptocurrency space, and how did you surmount these problems?
One of the foremost challenges is to understand the know-how about the cryptocurrency’s exchanges, technologies, and regulations for a company to be established.
The other one being, to find the right people who can be an asset to the organization. We being cryptocurrency enthusiasts, studied and gathered information from all possible resources, going through hardships and negativities in building a cryptocurrency exchange.
Last but not the least, Security is our prime focus since it involved users’ funds.
We had to go through rigorous testing and security checks, we finally managed and introduced the coinbaazar platform and subsequently other verticals.
What are your thoughts on the explosion of the NFT space?
As to why they’re blowing up right now, I would attribute it to a couple of things: the pandemic that’s forced everyone to have access to a computer or a smartphone, and an easy entry point. It is super easy for anyone to sign up and you don’t need to have a crypto wallet. Just like Nifty Gateway, people can use their credit cards.
For most of the NFT platforms, you need to have an Ethereum wallet. This means collectors need to purchase ETH from an exchange and send it to a non-custodial address that consists of a long string of numbers and letters to get started.
Which is easy to get into, easy to sign up for, and easy to purchase.
NFT is a much more open and a platform easily accessible to all, it helps Artist’s & creative people that type of visibility and empower them to be creative.
I feel creativity is not cheap, it is rich.
What are your thoughts on the regulation of the cryptocurrency space by world governments?
The idea of digital currency is relatively new, and banks around the world are still reeling from the implications of Blockchain/Bitcoin technology. But the newer innovations from the financial Tech sector show that the status quo can be improved, it can only be a strong contender to replace paper money, provided the advancement in the digital currency space is done. Therefore this put the world’s governments in an awkward position.
On one hand, the world’s governments feel the need to create legislation that encourages the adoption of the cutting-edge financial infrastructure that could be a massive boon to economic competitiveness.
On the other hand, giving people too much freedom may risk the integrity of the country’s own paper money. A balance has not yet been reached upon; as a result, the reaction of the world’s governments has been quite different towards cryptos and their technology (when it comes to accepting them in totality).
Reactions range from being fearful, apprehensive to being positive, but either way, no government can take it lightly.
Please, can you tell us more about your escrow process?
The escrow system plays an important role in the whole process of buying and selling bitcoins on coinbaazar. Anyone who wants to sell or buy bitcoins will feel secure as the moment any trade will be initiated the bitcoins will be automatically deducted and transferred to coinbaazar escrow wallet.
Let’s just understand this with an example, Suppose John wants to sell a bitcoin in the USA, he creates an offer, and Steve who wants to buy one, will open the trade where they can chat, where John will share his bank details so Steve can transfer money and can buy bitcoins from John,
The moment the trade is opened, The Bitcoins from John’s wallet, will be deducted automatically and will be transferred to Coinbaazar’s escrow wallet, So once Steve Transfers money In Johns Bank Account, John can Click on the Release button and the bitcoins will be instantly transferred to Steve’s wallet.
If in case the trade terms of both parties don’t match, Steve can easily cancel the trade even after opening it, and the BTC will be returned to John’s wallet. But in a rare scenario, in case John doesn’t receive the payment but Steve claims to have paid, in such a situation anyone of them can raise a dispute and our professional moderators intervene, establish the authenticity of either one, thus release the BTC to the genuine vendor. Thereby ensuring & securing the interest of all.
How do you think cryptocurrencies and their allied technologies have changed the world?
The core basis of the cryptocurrency industry is based on Blockchain Technology. It was innovated to make it possible for two individuals to send payment over a secure platform without having to reveal their identities.
Since it came into existence, Blockchain has been evolving into something big, which is now becoming uncontrollable to individuals and countries.
We are still in the initial stages of advancements and developments and much more is coming our way.
But for sure, blockchain and cryptocurrencies are a revolution that is innovated in the last decade, specifically for the benefit of all, not just specific to a person or country.
What are your thoughts on the recent cryptocurrency price pullback? Do you think this is the beginning of the end for space? Please, can you tell us the reasons for your answer?
Cryptocurrencies are here to stay…since their inception has been quite volatile from time to time. People are now starting to realize the price pullback depends on various factors.
One of the major factors is the regulatory concerns and weakness in more speculative areas of financial markets. The other factor could be negative comments by Top Crypto Investors or Financial Institutions without even realizing the overall market impact for the cryptocurrency price falls.
But this has now become a usual trend and people are more aware while investing and holding, and a lot more people are rather filling their buckets with cryptocurrencies, leaving aside the negativities and evolving into big-time players.
Between SHA-256 and Scrypt which of these two cryptographic processes do you think work better for the implementation of distributed ledgers?
In more technical terms, SHA256 is a rather simple procedure from an architecture standpoint. Consider data “streaming down” between various “steps” (correct terminology is “round”).
The numerous “streams” of data are scrambled every time you move from one stage to the next. When you reach a “step,” the multiple “streams” are blended. It is worth mentioning that SHA-256 is a component of the NSA-designed SHA-2 cryptographic hash function. In the early days of bitcoin mining, it was possible to employ a powerful CPU.
GPUs became the new preferred form of mining gear after the mining program was changed to enable them. Eventually, FPGAs and ASICs took over. Mining bitcoin has become an extremely expensive process due to the employment of these application-specific integrated circuits.
This equipment demands a large amount of electricity. Scrypt is GPU friendly for miners, and the vast majority of Scrypt miners are GPU miners.
Scrypt requires more memory than SHA-256, but this is countered by the fact that Scrypt mining consumes less energy than SHA-256 mining. With less electricity comes less heat production and less noise from your miners.
This makes scrypt the preferred algorithm for distributed ledgers as there is no way that an attacker will be able to introduce false hashes into the system which won’t be rejected by every other node on the system.
Are there any limits of the total number of Magnetocoins to be produced? What are the dynamics of the Magnetocoin economic cycle?
Yes, the total number of magnetocoin that can ever be produced is 35 Million; Magnetocoins are introduced in the system through the process of mining.
Mining is essentially like a big tournament of Crossword Puzzle, where each computer that is node can be called a participant.
The goal of this competition is simple, to solve the crossword puzzle, but the catch is there’s only one puzzle. And every time it gets solved by a participant. The puzzle resets for everyone, and for solving these puzzles the participants are given mining rewards or block rewards.
These block rewards are made to incentivize the miners and introduce the new Magnetocoins into the ecosystem. Currently, the block reward is 90 Magnetocoins and will halve every 4 years.
What are the steps, members of the cryptocurrency space have to take to become miners for Magnetocoin?
Magnetocoin is a decentralized cryptocurrency which anyone can mine with their regular computers and graphic cards.
One just needs to download the mining client from the magnetocoin website and run the client to install it. Once the client is installed it takes about 15-20 minutes to sync with the magnetocoin network.
On the right-hand bottom corner, the user will see a green tick mark and connection to the network. Once the miner is connected just click help>debug window>console and type “setgenerate true”. The mining will start thereafter.
This information is also available on the website. For any other assistance, users can also join our social networks like discord channel and ask their questions.
What are your thoughts on the proliferation of new cryptocurrency tokens?
With the volume of smart contract tokens entering the market, I believe this is overwhelming. There is a prevalent misconception that tokens and coins are identical. However, this could not be further from the truth.
Tokens are essentially smart contracts that operate on currently existent blockchains such as Ethereum, Binance, or any other comparable chain.
The tokens have a predetermined quantity available with the owner from the outset, and the general public holders are subject to the intentions of the token’s owners.
Every day, a new token is added to the market, but coins work differently; a whole cryptocurrency with its blockchain provides genuine decentralization.
Transactions on this form of cryptocurrency are final and cannot be reversed. With Magnetocoin, we attempted to incorporate the basics of cryptocurrency that even the most publicized crypto tokens today fail to achieve.
It is difficult to obtain, restricted in supply, and simple to verify.
Do you have any other projects you’re interested in besides Magnetocoin?
Yes, we are planning to expand our horizon in the crypto space, we have few projects in mind. One of them being a Derivative Exchange and the other being creating our own smart chain contracts using MGT blockchain which can further be used for technological advancements.
Besides, we already have 2 more verticals
a global news channel, fair and objective portal, where readers can find the best information and latest cryptocurrency news.
As the name suggests talkoncrypto.com is a public domain cryptocurrency forum platform where people can chat, share & discuss a variety of topics related to the world of cryptocurrency starting from announcements, industry’s developments, new launches of Apps to latest topics, and much more.
Do you intend to add network bridges to other ledgers? Please, can you tell us the reasons for your answer?
Yes. We have such plans ahead in the future. Magnetocoin Blockchain is digital ledgers visible to all. However, while all on-chain data is transparent, the technology of a blockchain serves a self-contained ecosystem.
To preserve the consensus that supports the security and accuracy of a shared ledger, only miners who rigorously follow the rules of each network are authorized to validate and write transactions to the blockchain.
The technology is extremely effective, but the walled structure of blockchains may be stifling Defi’s advancement by tying Defi users to a single network when the blockchain landscape as a whole provides a world of functionality and opportunity.
At a time when the Lego-like composability of decentralized finance applications (dapps) is changing the face of financial services, autonomous blockchains must “communicate” with one another more than ever.
Bridging magnetocoin blockchain will allow users to reap the benefits of various blockchain technologies without having to switch platforms. This not only relieves strain on Magnetocoin but also encourages innovation in other ecosystems without requiring a winner-take-all mindset.
Do you intend to make your blockchain EVM compatible? Please can you tell us the reasons for your answer?
There is always a scope for Advancements and Developing New Technologies. Yes, we may plan to convert our chain to proof of stake in the future and also make it evm compatible.
Our goal is to make sure existing solidity developers will be able to make and execute smart contracts on Magnetocoin blockchain.
It means that the code, which developers write, will be compiled into EVM byte code, and the blockchain then executes EVM code when smart contracts are executed.
EVM is the industry standard for developing smart contracts. With EVM compatibility, developers can build in the same way they would on Ethereum, using the same tools and applications. We will also be working to make our Blockchain Web3 Client.
Please can you give us full details on the technical capabilities of the ledger behind the Magnetocoin blockchain?
Cannot be tampered with
The digital ledger is replicated in every node on the network. To add a transaction, each node must verify that it is valid. After that, it’s entered into the ledger. This increases transparency and makes it impenetrable to corruption.
The network is decentralized, which means there is no governing authority or one individual in charge of the infrastructure. Instead, the network is maintained by a set of nodes, making it decentralized.
A higher level of security
Because it did away with the need for centralized authority no one can easily change the network’s characteristics to their advantage. Encryption adds a layer of protection to the system.
A ledger on the network is maintained by all other users on the system. This distributes the computational power across the computers to ensure a better outcome.
Consensus algorithms are at the heart of any blockchain which is smartly built. Every blockchain features a consensus mechanism to assist the network in making choices. Magnetocoin works on a proof of work consensus.
No one on the network is entitled to receive preferential treatment. Everyone must first go through the standard channels before adding their blocks. It’s not like you’ll earn more perks just because you have more power.
Blockchain offers a faster settlement compared to traditional banking systems. This way a user can transfer money relatively faster, which saves a lot of time in the long run.
If you had three wishes and a genie that could make them come true, what would they be for Magnetocoin and other members of the cryptocurrency space?
Wish #1: Answer to these question now three wishes would be to see magnetocoin as the most sought-after cryptocurrency.
Wish #2: Wish two is that the magnetocoin has to an absolute robust performer.
Wish #3: Wish three is that we should be commanding a position where people would think of our name as a synonym with magnetocoin.
Do you have any secrets you want to tell us? Care to spill the beans?
To call secrets as secrets won’t be right, but yes there definitely are some trade secrets that should be known when our platform is well accepted and counts among the top five exchanges. The reason for the same is that once you are popular even initial slippages are termed as a success story.