Will ARK be the next global currency?
Some cryptocurrencies aim to become valuable through rarity and limited supply. ARK aims to become valuable by being extraordinarily useful and widely available.
It’s a complete system rather than just a token. It has a lot of defining features, but the main one is probably its bridging chains. These let the ARK system connect with existing blockchains such as Ethereum and endless others that have yet to be created.
These bridging chains let ARK adapt to include new features over time, and bring the most useful elements of other blockchains into its own ecosystem.
It’s also characterized by a very speedy 8-second block time, making for noticeably more responsive transactions than other blockchains can offer.
Where to buy ARK
You can also get ARK on Bittrex, Bit-Z, COSS, UPbit, LiteBit, CoinSwitch and Cryptomate
What are the unique features of ARK and how does it work?
There are a lot of unique features. The most important thing to remember is probably that ARK isn’t just a token. It’s an entire system, designed to be able to function as the last cryptocurrency the world needs, based on the following:
- ARK SmartBridge: ARK is built to integrate features from other blockchains and to work across multiple chains. The most immediate application is to bring in essential features like smart contracts, but as blockchains proliferate and become a standard business solution, users may decide to use ARK to integrate multiple, application-specific business chains into a single framework.
- Offchain solutions: ARK aims to release its own credit and debit cards, letting people use major-brand credit and debit cards backed by ARK.
ARK fees, inflation and earnings
A range of usage fees apply, which may be subject to change based on the value of the coin.
- Transaction fee: 0.1Ѧ
- Voting fee: 1Ѧ (51 votes per transaction)
- Multi Signature: 1Ѧ per signature + 1Ѧ per signing account
- Registering a delegate: 25Ѧ.
All fees are paid to the forging node which processes the block containing those fees.
For this to make sense, it’s worth knowing how ARK “forging” and “delegates” work.
ARK forging and delegates
Forging on ARK is equivalent to mining on other blockchains. ARK uses a delegated proof of stake (DPoS) mining algorithm to reward stakeholders semi-randomly for their contributions to the network.
These contributors are known as forgers or delegates. There are up to 51 at a time, and they’re democratically elected by other stakeholders. Their job is to maintain and run the network. In return, they get any of the set fees that they happen to process, as well as a flat 2Ѧ per block reward.
There’s no set ARK coin supply limit, or built-in deflation the way there is with other systems. Instead, having a set eight-second block time and a flat 2Ѧ mining reward results in reducing inflation year-on-year.
In the first year ARK inflation was 6.31%, while the second year was 5.93%. In year ten, it’s set to be 4.02%.
At its current prices, the rewards of being an ARK delegate are considerable. The 51 delegates forge a total of 10,800 blocks per day, earning a total of 422Ѧ. At US$5 per Ѧ, each delegate is earning over US$2,000 per day by being a forger, even before counting any transaction and other fees they earn in the process.
How voting works
Users can put an upvote next to their delegate of choice, at the cost of 1Ѧ. To change it they can pay a further 1Ѧ.
During December, 2017, the 51 delegates were forging a total of 10,800 blocks per day, earning a total of 422Ѧ. At US$5 per Ѧ, each delegate was earning over US$2,000 per day by being a forger, even before counting any transaction and other fees they earn in the process.