Place/Date: Manchester, UK - September 7th, 2015 at 9:20 pm UTC · 3 min read
Source: Bitcoin PR Buzz
The digital currency industry – while met with controversy in both the governmental and financial sector – has grown rapidly since Bitcoin was first created by Satoshi Nakamoto. Unlike fiat money cryptocurrency is not produced by banks and controlled by governments. It is cheap to transfer and can be protected against inflation. Cryptocurrencies may invoke a paradigm shift to the people’s advantage, especially in countries with restricted finances, as well as to aid the millions of unbanked worldwide.
Cryptocurrencies have two ways of controlling how many coins should exist; ‘Proof-of-Work’, and Proof-of-Stake’, also known as ‘minting’. Mining is the process of adding transaction records to the public ledger through computers solving algorithms. This is the method used when producing Bitcoins. Mining requires a steep learning curve and an initial investment that ranges from a few dollars in a mining pool to several thousand dollars for a physical miner. Mining also requires continuous reinvestment in computer hardware and electricity; which for many poses a significant entry barrier. Proof-of-Stake, on the other hand, is a virtualization of the above process which achieves the same result but is more cost- and energy efficient and requires less expertise from the individual. DMD Diamond combines the strengths of both to create a hybrid system that is not only very effective at securing the network but also highly rewarding for DMD users.
Minting through Proof-of-Stake delivers interest like a bank, however due to the fact that it is not establishment centric, but user oriented, the amount of interest the individual receives is incomparably higher. DMD Diamond’s network algorithms guarantee DMD adopter’s 50% interest annually which in real terms means that a deposited 1000 DMD will yield an additional 500 DMD hands-free. To use a DMD Diamond wallet is as simple as opening the wallet and keeping it running in the background on a PC. This makes DMD an optimal choice for novice and tech-savvy users alike. Diamond´s system is programmed to function automatically and maximize profits for DMD adopters, and not to make profit from users as in traditional banking.
In order to increase the DMD adopters wealth with 50% annually without causing hyperinflation and loss of value Diamond´s system is governed by a predefined and carefully designed issuance model. The model takes into account all possible outcomes and any increase of coin count – created by any number of participants – so that a collapse of DMD Diamond monetary system is at all time prevented. DMD Diamond takes a constantly decreasing inflation approach with the ultimate aim of achieving inflation at par with yearly world gold excavation.
In a time where the banking sector has proven to be unstable and world governments constantly change interest rates, DMD Diamond brings stability with predefined cryptographic algorithms. Modern businesses in any country, with any regime are able to plan not only months but decades ahead when implementing DMD Diamond to their business.