Review of BlockNet - 10/10/2018
Before I get started, I want to remind everyone that this is not financial advice. I am not a financial advisor. If you take anything that I say to you as truth, you may get #rekt. Do Your Own Research #dyor
Blocknet $BLOCK is self-titled as “The Internet of Blockchains”. It’s a protocol, or set of rules for governance, designed to allow interoperability between multiple blockchains. These protocols will allow one to both interact with and trade between any other supported blockchain using atomic swaps. In existence since 2014, Blocknet has been feverishly working toward creating powerful API’s to link disparate blockchains on their own decentralized exchange, BlockDX.
BlockDX is a decentralized exchange, or DEX, that utilizes $BLOCK as its native token. Unlike most ERC20 based DEX’s, BlockDX is downloaded and installed on your PC; like Bisq. From there, one can safely trade crypto assets in a P2P environment. The GUI is slick and offers a great view of balances, charts by Trading View, trade history, the open order book, and a depth chart. Clearly, the Blocknet team went all out to develop this exchange application. One of the coolest features of the platform is that you can list assets free of charge. This is a great feature and a real departure from the norms of centralized exchanges.
The Blocknet network is powered by a series of service and staking nodes. The staking nodes secure the network. Unlike many Proof of Stake projects, there is no minimum balance needed for staking $BLOCK. As a reward for this service, stakers receive a portion of the 30% block reward. Service nodes provide the computational power for the network and keep Blocknet up and running. To own a service node, one must #hodl 5000 $BLOCK tokens, run a Blocknet node and run full nodes of all blockchains that Blocknet supports. For this, Service node owners receive a portion of the 70% block reward. This system of service and staking nodes makes Blocknet different from its competitors and creates value for the $BLOCK token.
Fundamental Analysis:
Cross chain interoperability is the “holy grail” of Blockchain 3.0. My research indicates there are roughly 11 projects like Blocknet. Some of them are well known, like Icon $ICX, Metronome $MET, WanChain $WAN and Ark $ARK. Some of them are lesser known like Quant $QNT, Lamden $TAU and Polkadot. The one major component that the differentiates Blocknet from its competitors is that they have integrated this cross-chain interoperability into an exchange; their exchange. This is probably the reason why $BLOCK trades for 4x higher than the other tokens listed.
Cross chain interoperability is the “holy grail” of Blockchain 3.0. My research indicates there are roughly 11 projects like Blocknet. Some of them are well known, like Icon $ICX, Metronome $MET, WanChain $WAN and Ark $ARK. Some of them are lesser known like Quant $QNT, Lamden $TAU and Polkadot. The one major component that the differentiates Blocknet from its competitors is that they have integrated this cross-chain interoperability into an exchange; their exchange. This is probably the reason why $BLOCK trades for 4x higher than the other tokens listed.
As it pertains to exchanges, I was rather surprised to see $BLOCK currently trading on only 4 exchanges. At the time of writing, $BLOCK is traded on Upbit CryptoBridge, Cryptopia, and Bittrex. (If you read Cointradernik's book you know this is significant) With an all-time high of $59.66 on January 06, 2018, this token has plenty of room to run. It’s down 92.4% from its all-time high. With a block time of 1 minute, there can be a nice profit made from staking. But I am a little concerned with the fact that I couldn’t find a max supply number for this token in the cryptoverse. Normally, that would be a giant red flag for me. The last thing I’ll add for FA is this; if you are like me and check GitHub for project progress, don’t waste your time. I found a Trello site that Blocknet uses to monitor and log their application development sprints. Go here if you really want to see how the project is progressing.
Technical Analysis:
***MY TA IS BASIC AND SOMETIMES FLAWED. DON’T TAKE THIS AS LAW. I’M STILL LEARNING AS WELL.***
As shown above, this chart is based on SMA50, EMA50, BB20, and Stochastics. There was a crossing of the EMA and SMA in September. Based on low volume at the time, we saw a drop in the price. Currently, SMA and EMA are trending in parallel with each other. Widening of the Bollinger Bands doesn’t indicate any real price movement anytime soon. With Stochastics in oversold territory, I plan to keep an eye on volume. I plan on looking closely for reversal trends in candlesticks before making my entry. Because I’m an investor and not a trader, I plan on entering the market now in small increments and hodl till the cows come home.
Conclusion:
Blocknet is a great company and has an even better project. I found the exchange a little difficult to install but the wallet was pretty simple. If you want more information on Blocknet, visit their website:
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