What is Electra?
Electra is a novel cryptocurrency that combines multiple security mechanisms into its blockchain. It aims to make improvements on the original bitcoin blockchain architecture by offering more scalability, lower fees and faster transaction times. It combines both “Proof of Work” (PoW) and “Proof of Stake” (PoS) data processes to provide advanced transaction security, using a unique algorithm called “NIST5.”
History of Electra
Electra was founded in March 2017 by an anonymous developer known as “Electra01.” Its Proof of Work coin generation process lasted for a brief period of time after the coin launch, with the majority of coins mined in a 24 time window labeled as a “Super Rewards Bonanza.” During this period, between blocks 11522 and 11810, 95% of all PoW segment coins were mined, with the remainder being mined previously during a “beta test phase.” Their premine, or coins mined before release to the public, consisted of a little over 1 billion coins, all contained in the ECA “genesis” block (block #1). Electra was one of the few comparatively successful coins in recent years to be launched without an official ICO process, though they do have an Announcement [ANN] page on bitcointalk.org.
How Electra Works
Using a hybrid blockchain algorithm combining PoW (bitcoin) and PoS (NXT) mechanisms, Electra generated its first round of coins via traditional mining methods (PoW) and adds new coins based on coin ownership per address (PoS). The algorithm was created for a SHA-3 (security hashing algorithm) competition hosted by the National Institute of Standards and Technology (NIST), of which it entered the final round of candidates. The algorithm, aptly named NIST5, promises enhanced security of transactions while also providing faster transactions with lower fees.
Although the PoW period for the coin is now over, users can still create new coins via their staking mechanism which is designed to return 50% of coins held in each address per annum. The staking reward will always remain proportional to the amount of coins held and will continue until the maximum circulation of 30 billion coins is reached.
Why Use Electra?
From the coin website’s FAQ:
“Our biggest aim is to make it decentralized. Anyone who contributes to Electra Project is the owner of it as well. We welcome everyone to Electra community. We don’t want Electra to be only traded on exchanges. Rather, we work on adopting Electra by various online merchants as their optional payment system. A digital currency, backed by its community, will always have a better future.”