The CLAMS (CLAM) proof-of-chain cryptocurrency solves an interesting problem–determining if altcoins really operate on blockchain.
To explain, there are allegations that some popular cryptocurrencies including EOS (EOS) and Ripple (XRP) are not blockchains. Instead, critics allege digital currencies like EOS are really sidechains. To explain, a sidechain is a bigger and less-encrypted pathway through the cloud than a blockchain.
They use sidechains, because sidechains are faster and capable of processing far more transactions than blockchain. However, sidechains contain far less encryption, and sometimes lack security measures like proof-of-stake. Thus, a sidechain could be more vulnerable to hacking, crime, and cyberattack than a blockchain.
Unfortunately, skeptics allege some cryptocurrency promoters advertise sidechains as blockchains. Notably, critics are directing such allegations at Facebook’s (NASDAQ: FB) Libra Project digital currency scheme.
What is Proof-of-Chain?
In proof-of-chain altcoins, every user receives a sample of the blockchain. For instance, the CLAMS team sent 4.6 CLAM tokens to millionsof Litecoin (LTC), Dogecoin (DOGE), and Bitcoin (BTC) owners.
The idea behind this distribution was to provide proof-of-stake or ownership of CLAMS to as many people as possible. Ideally, proof-of-stake creates a network of hundreds of thousands or millions of people with the ability to verify the authenticity of CLAMS tokens.
The CLAMS Network; a global peer-to-peer system of computers running the CLAM software, verifies CLAM proof-of-stake. The idea behind the CLAMS Network is that a widely dispersed and decentralized network is hard to track and crack.
Why Governments Probably Know how to Crack CLAMS
Strangely, the CLAMS Network mimics The Onion Router; or TOR, a browser that routes internet traffic through third-party computers. The idea behind TOR is to make it impossible to track computer users by routing their internet traffic through dozens or hundreds of relays around the globe.
Interestingly, the Defense Advanced Research Projects Agency (DARPA); an entity that researches and develops new technologies for the US military, created TOR in 1997. DARPA created TOR to provide a communications network for American spies in the field.
Thus, the intelligence community knows all about proof-of-stake and proof-of-chain. Moreover, I imagine organizations like the US National Security Agency (NSA) and the British Government Communications Headquarters (GCHQ) know how to track and crack both TOR and CLAMS.
What Value Does CLAMS have?
Consequently, the whole premise behind CLAMS (CLAM) is questionable. However, CLAMS has some value and a few merchants appear to accept it.
Poloniex and Shapeshift trade CLAMS at their exchanges, for instance. In addition, CLAMS claims some gaming sites accept CLAMS (CLAM).
However, CLAMS is not convertible to Ethereum (ETH) or EOS (EOS). Thus it could be hard to exchange Ethereum Request for Comment (ERC20) platform tokens for CLAMS. In addition, CLAMS does not participate in Bancor’s Liquity Network; which guarantees buying power for cryptocurrency.
Does CLAMS (CLAM) Have Any Value?
On the other hand, you can convert CLAMS (CLAM) through CoinSwitch. To explain, CoinSwitch offers fast conversion of 594 altcoins and several fiat currencies.
CoinSwitch gave CLAMS a Coin Price of $3.17, a Market capitalization of $11.591 million and a 24-Hour Market Volume of $36,937 on 27 June 2019. Additionally, CoinSwitch estimates there was a supply of 3.65 million CLAMS on the same day.
In contrast, CoinMarketCap gave CLAMS a $3.35 Coin Price, a Market Cap of $12.263 million, and 24-Hour Market Volume of $38,479 on 27 June 2019. Plus CoinMarketCap estimates there was a Circulating Supply of 3.666 million CLAMS and a Total Supply of $17.285 million CLAMS on the same day. CLAMS (CLAM) was the 287th most valuable cryptocurrency in CoinMarketCap’s estimate.
What Future Does CLAMS have?
In my opinion, CLAMS is an interesting curiosity and a relic of cryptocurrency’s past. To explain, CLAMS is an altcoin, built by cryptocurrency hobbyists for crytpocurrency hobbyists.
In addition, I think CLAMS opensourced architecture and total decentralization creates a huge security risk. To explain, CLAMS could create massive privacy and security risks because no central organization is administering its blockchain. Any criminal can get in and pillage the CLAMS Network if he can crack its encryption.
Thus, CLAMS is like a bank with a great vault and excellent alarm system but no security guard. Criminals will have a hard time getting in, but if crooks can get in they can pillage at will. Thus, your cash will be safer in a bank with a lousy vault that has a guard on duty.
Why Centralized Blockchains could be more secure
Hence, I think blockchains like Libra, Ripple (XRP), Ethereum (ETH), and EOS (EOS) are the future of cryptocurrency. To explain, in Ripple, EOS, and Libra, a central authority will administer and secure the blockchain. Thus, there could be some sort of security guard on patrol.
Moreover, at Libra, Ripple, Ethereum, and EOS there is somebody to hold accountable if something goes wrong. For instance, they could sue or arrest Mark Zuckerberg or Vitalik Buterin Libra or Ethereum gets hacked or crashes. In addition, authorities can raid Block.One if something goes wrong at EOS.
Oddly, centralized blockchains could offer more transparency because we know where to find the people behind them. One problem I see with crytpcourrencies like Bitcoin (BTC) and CLAMS (CLAM) is that there appears to be nobody responsible for maintaining the system.
Thus, either nobody is in charge, or worse some shadowy secret entity is maintaining the system. I think dealing with a mysterious organization with an unknown agenda is stupid.
Stay Away from CLAMS (CLAMS)
Smart speculators will stay away from CLAMS (CLAM) because it is a relic with little chance of growth. To explain, I see chance of cryptocurrencies like CLAMS gaining acceptance by the public or finding widespread commercial use.
Banks, governments, corporations, and most consumers will not entrust their money and security to a shadowy do-it-yourself network. Epic Games, for instance, will not entrust the security of its 250 million Fortnite players; and their money, to something like CLAMS.
However, Epic is working with the Ethereum payment solution The Abyss (ABYSS). Moreover, I predict companies like Epic Games will accept Libra when it becomes available. I predict, Epic will work with Libra, because Libra is already working with fintech giants like PayPal (NASDAQ: PYPL), Visa (NYSE: V), and MasterCard (MA).
Smart speculators will ignore museum pieces like CLAM and concentrate on up-to-date cryptocurrencies like EOS (EOS) and proven value generators like Bitcoin (BTC). The value of solutions like CLAMS is low because cryptocurrency is finally growing up and moving towards a mass market.