Einsteinium the Cryptocurrency for Philanthropy
Einsteinium (EMC2) is a cryptocurrency they designed for philanthropy. In addition, Einsteinium could provide a blueprint for cryptocurrency taxation.
The Einsteinium Foundation, the organization behind Einsteinium, raises funds for scientific research through a mining tax on the creation of new EMC2 tokens. In addition, they intend Einsteinium to make charitable donations and political fund raising faster, more efficient, more transparent, and less corrupt.
Interestingly, the Einsteinium Foundation is issuing MIL Coin, a new coin for philanthropic spending. The MIL Coin is apparently a 1.3 fork from Einsteinium, the MIL Coin Blue Paper claims. A fork is a new version of an existing cryptocurrency. Hence a good way to think of the MIL Coin is as Einsteinium 2.0.
Einsteinium’s Proposed AI could be worth a lot of Money
Notably, the Einsteinium Foundation hopes to build an artificial intelligence (AI) into the MIL Coin. The Mil Coin Blue Paper claims the AI could award the Einsteinium Foundation’s science grants. In fact, the Blue Paper claims the AI could verify the grant applicants and their projects.*
I think this AI could make a lot of money if it works. To explain, an AI that can verify grant applicants could also verify loan applicants. In addition, such an AI could verify the identities of financial services customers.
Plus, the MIL Coin AI could enforce Know Your Customer (KYC) and Anti-Mining Laundering (AML) regulations by verifying customers and transactions. Hence, big banks and credit companies could pay a lot of money for such an AI.
Potential Commercial Applications for Einsteinium
In fact, financial institutions can lose their license or face government seizure if they violate AML and KYC regulations.
Another use for Einsteinium’s technology could be to collect and pay a tax as a financial institution creates a cryptocurrency or stablecoin. Instead of paying a foundation the AI could pay the tax to the government.
Other uses for the MIL Coin AI could pay gambling winnings and dispersing welfare or basic income payments. Another potential use for the MIL Coin technology is to verify and pay insurance claims.
Theoretically you could create investment products like bonds, annuities, exchange-traded funds, or stocks that use the MIL Coin AI. To explain, the AI could verify the ownership of the investment and pay interest or dividends.
Hence, there could be several potentially huge markets for the technology the Einsteinium Foundation claims to be developing. However, there is no evidence the MIL Coin AI works or exists yet.
What Value Does Einsteinium Have?
Einsteinium (EMC2) was the 301st most valuable cryptocurrency tracked by CoinMarketCap on 21 October 2019.
CoinMarketCap estimates EMC2 had a $10.068 million Market Capitalization and a $41,070 24-Hour Trading Volume on 21 October 2019. They based those numbers on a 4.6₵ Coin Price and a 218.964 million EMC2 Circulating Supply.
Mr. Market could limit Einsteinium’s value because it is not an ERC20 (Ethereum Request for Comment) token. Hence, you cannot easily convert EMC2 to Ethereum. Thus Einsteinium may not work on platforms they build from the Ethereum blockchain.
However, Einsteinium is compatible with the Lightning Network a blockchain platform they design to speed up Bitcoin (BTC) based cryptocurrencies like Einsteinium. Unfortunately, they reveal no exact speed for Einsteinium transactions on the Lightning Network.
Is Einsteinium Scalable and Fast?
Instead, EMC2 claims to offer a one minute block time on Lightning Network through SegWit 2.
The Lightning Network speeds up cryptocurrency transactions by adding smart contract programming language to tokens. A smart contract is a digital robot that can quickly verify and conduct transactions.
The Lightning Network’s purpose is to make Bitcoin and similar cryptocurrencies faster and more scalable. However, Blockchain.com estimated Bitcoin was processing just 4.2 transactions a second on 21 October 2019.
Bitcoin and EMC2 can be slow because of all the encryption and security protocols limit the size of its blockchain. For instance, they build a Komodo delayed Proof-of-Work (dPoW) protocol into Einsteinium. Essentially, the dPoW verifies additional data in the token to add an extra label of security.
Solutions like the Lightning Network are faster shortcuts around the blockchain. Hence, the Lightning Network sacrifices some security for speed.
I like Einsteinium (EMC2) because it is not an initial coin offering (ICO) token. That means its creators hope to make money through their blockchain rather than by issuing tokens.
However, Einsteinium’s blockchains appear to be theoretical right now. Hence, I judge Einsteinium as a cryptocurrency to watch rather than speculate in.
- Mil Coin Blue Paper downloaded from https://download.emc2.foundation/docs/MIL-Coin-Blue-Paper.pdf
