Why RaiBlocks’ price is going up right now
RaiBlocks has almost cracked the top 20 cryptocurrency ranking after an enormous month of growth.
Going against the slumps of both Bitcoin and Ethereum, altcoin RaiBlocks is up over 300% in just one week, suddenly making it the 21st biggest cryptocurrency based on market value.
This is despite the fact that it can only be traded on three relatively small exchanges, with neither of them accepting fiat currency to trade.
So what's with the massive rise in value?
1. It's the product the market wants right now
As Bitcoin has become bigger and bigger over the past few months, the inherent flaws in Bitcoin have become exposed - its small 1MB block size and 10 minute wait time between blocks. This has resulted in expensive, lengthy transactions on the Bitcoin network and users are getting sick of it. This particularly came to light with Bitcoin Cash's rise to prominence earlier in this month, both due to some suspicious inside buyers, but also because it offers 8MB blocks, making transactions much faster and cheaper than traditonal BTC.
However RaiBlocks is both faster and cheaper than even Bitcoin Cash, with zero fees and is essentially instantaneous. It does this by being the kind of anti-Bitcoin, with individual blockchains rather than one large blockchain based network.
Bitcoin's transaction problem will only continue to become more apparent as it grows, and the desire for a faster, cheaper currency such as RaiBlocks wil grow.
Investors are hoping that the fact it's only currently available on 3 extremely small exchanges will mean that they're getting in early and can make a large profit when bigger exchanges finally pick it up.
2. Increased public and developer attention
In cryptocurrencies, no matter how amazing your technology is, if the public and developers don't know about it, it isn't going anywhere.
IOTA was one of the highest growing coins of the past few months, and with that, in a similar way to how Bitcoin brought attention to the likes of Ethereum, it bought attention to similar DAG based coins such as RaiBlocks.
DAG-based coins are essentially coins without blocks and references look more like transactions instead.
As it continues to grow, the lead developer has also announced recently that he's working on the currency full time now, inspiring confidence not only from investors but from other developers. He also recently announced that he's approached over 80 new exchanges to list XRB, meaning awareness and access to the market is about to pick up even more.
3. Faucet distribution ended in November
Up until last month, you used to be able to get RaiBlocks XRB by correctly solving captcha puzzles. This was basically its equivalent of bitcoin mining - offering XRB as a reward for the solution. However, this faucet ended in November meaning no more free XRB, and the only way you can now get it is through trading.
How do RaiBlocks work?
In RaiBlocks, each account has its own blockchain, and each block that is sent through that has just the one transaction. When you send XRB, two transactions are required - a send transaction that deducts the balance from the sender and a receive confirmation by the recipient. Think of it like the two ticks you see when you send a WhatsApp - the one tick when you have sent it, and the second tick when your recipient confirms it has received the message.
To avoid needing to use a wider blockchain network to verify transactions, RaiBlocks sends need to reference the previous transaction of the owner's block. Without going through a wider blockchain means that transactions are almost instant.
Due to the fact that it doesn't involve miners, there is much less of an environmental impact as giant server farms aren't needed to keep the network running. It also means that there are no rewards that need to be paid, as a result transactions with XRB are free.
If you're interested in buying RaiBlocks you can check out our guide here.
- Women buy Ripple and NEO, men buy Ethereum Classic, Bitcoin Cash
- Bitcoin and cryptocurrency round-up 22 May 2018
- ULedger blockchain company creates overnight GDPR compliance tool
- Operation Cryptosweep: World’s largest ICO crypto securities sweep announced
- Ethereum price weekly analysis 22 May: The Woz is optimistic but the market isn’t so sure