Electroneum – or ETN – is a digital smartphone cryptocurrency. The team created ETN to provide quick and safe crypto transactions with low fees. Like Telcoin, Electroneum was designed for the unbanked population that currently makes up billions of people across the globe.
Launched in September 2017, ETN quickly rose to fame as one of the first cryptos based in the UK. Because Electroneum is smartphone-based, it presents several new opportunities that make it unique in the crypto space.
That’s why this article will deep dive into ETN, discuss how it differentiates itself, and finally, answer the question is ETN a good investment? Find out below!
How does ETN Work?
The Electroneum blockchain utilizes a unique algorithm known as Proof-of-Responsibility (PoR). Built using the Monero codebase, this PoR allows ETN users to make decentralized blockchain transactions.
Additionally, Electroneum features unique, built-in privacy features. The protocol accomplishes this added security by using a “stealth address.” A stealth address is a one-time public key that prevents recipient funds from linking to their wallet. Plus, this address carries the possibility of an audit by a third party to prove the transaction occurred.
Mobile App
As mentioned above, one of Electroneum’s most significant differentiators is its mobile usability. ETN’s mobile app allows Android and iOS users to access their digital wallet, send and receive ETN, and even create an offline wallet.
Additionally, through this app, ETN users can perform mobile mining. The app allows you to use your phone’s CPU to engage in simulated mining. This mining doesn’t cause your phone to overheat or drain your battery. Plus, the mining also uses a negligible amount of data.
Still, note that this mobile mining is simulated mining. Being simulated means, you won’t actually confirm new blocks on the blockchain. But mobile miners will still receive rewards for their participation.
Differentiators of Electroneum?
The primary differentiators for Electroneum are its ease of use and the speed and price of its transactions. As mobile-based crypto, ETN is extremely easy to access and use. You don’t need any fancy hardware or servers. If you have a mobile phone, you can earn, buy/sell, and trade ETN.
ETN’s instant payment system also sets it apart from other cryptocurrencies. Electroneum can process your payment in as little as two seconds, whether it’s a local or global transaction. These rapid transactions also help the adoption of ETN because businesses don’t need a blockchain engineer to remit ETN.
The final differentiator of Electroneum is its minimal fees. Each transfer of ETN is subject to a TX fee. The TX fee – currently 0.1 ETN – is the minimum TX Fee. This fee is based on several factors, including the number of blockchain inputs, the speed of desired TX, and the number of splits required to create a TX of the required size.
Electroneum deducts an Automatic Handling Fee (AHF) as a sender when you initiate a transfer to cover these TX fees. Once the protocol calculates your exact TX Fee, you’re refunded any unused amount of the Automatic Handling Fee. As of now, this AHF is 5 ETN. But the vast majority of transactions carry less than 0.2 ETN in total fees.
ETN Tokenomics
Currently, ETN’s circulating supply is around 10 billion ETN. This total will eventually reach a maximum supply of 21 billion ENT through rewards to miners. Plus, this total will never increase. But even when the total supply is eventually mined, miners can still profit by collecting transaction fees.
In 2021, ETN experienced moderate price gains, increasing by 63.5 percent over the year.
Is ETN a Good Investment?
Is ETN a good investment? Only you can decide what is or isn’t a good investment at the end of the day. Because, as with any investment, it depends entirely on you and your financial goals. If you want a safe investment with a solid return, any cryptocurrency isn’t your answer as all cryptos carry significant volatility.
Still, if you want to engage in the crypto space, and believe in the project and the team behind it, you can invest in ETN without a significant amount of capital. Due to its real-world implementations and high level of convenience, ETN seems set up for continued growth into the future.
