The diversity of cryptocurrencies and their ability to create value and facilitate more efficient means of exchange for individuals and businesses continues to grow. One of the primary distinctions of Bitcoin and Ethereum in its current state is that they are proof-of-work coins, which require mining. While Bitcoin is expected to only ever be proof-of-work, Ethereum developers have been working on a transition to POS.
Proof-of-work is often cited as a downfall of the currencies, because of the energy use required by mining, and that the expensive equipment excludes some people from being involved. One solution is proof-of-stake, where simply holding a given amount of the currency qualifies the individual to earn rewards. Dash is an early example of this, along with QTUM, Stratis. Yet for these networks, it is still exclusive for those who have enough wealth to hold as the given coin.
The Flexa network takes another stride ahead from where Ethereum left off. The network will launch May 13th, and is not explicitly a blockchain network, and just completed a funding round of $14 million from investors such as Pantera Capital, 1kx, Nima Capital, Access Ventures. The founders allude that their service was designed to be more like a Stripe payment processor, but for cryptocurrencies. The services they will offer will be someone like other cryptocurrency payment processors such as BitPay, CoinGate and SpectroCoin.
“Flexa plays a critical role in blockchain adoption at-large because it is bridging this digital payments landscape into a brick-and-mortar setting. It’s opening up the idea of spending cryptocurrency to a much broader audience.” - Access Ventures partner TJ Abood
However, Flexa includes a native cryptocurrency. Businesses can stake Flexacoin to the network and earn token rewards in a model comparable to proof-of-stake systems, somewhat similar to Cosmos or Tezos. Flexa will also include custodial wallet app for its network, were users can spend cryptocurrencies at point-of-sale systems with a type of QR code scan, similar to Apple Pay.
“We wanted the total Flexacoin supply to represent how much money can flow through the system right now. All the participants earn money.” - Flexa co-founder Tyler Spalding
By: BGN Editorial Staff