WTF is Energi (NRG)?
With the significant increase in varied projects in the cryptocurrency space, you may become confused about how projects distinguish themselves. Whether a project is a token or a coin, some users might not even realize that there exists a difference between these two.
A coin is basically a digital equivalent to money, and coins may be used to keep value and pay for different services just like with physical money. Although some coins are a Bitcoin’s fork and are created with Bitcoin’s open-source protocol, others are developed and operated on its blockchain.
On the other hand, a token may be represented as a utility or asset and resides on top of a different blockchain. A token is a much easier process compared to creating a coin since it does not require building a blockchain from scratch or even any code modification. Tokens typically follow a standard template when it comes to the blockchain - e.g., on the Ethereum platform - that enables you to create your own token.
Read this article and find out what distinguishes Energi as a cryptocurrency, the team behind it, the funding, and how to participate in the network.
Let’s dive in...
What Is Energi?
Energi is blockchain-based and decentralized just like many other cryptocurrencies. It primarily focuses on smart contracts and decentralized applications. It also has an excellent method of governance as well as a self-funding treasury model that’s made to help to make it the largest and most recognized blockchain platform throughout the world.
This Energi project started as a fork of the Dash source code back in the summer of 2017. Initially, it adopted a Proof-of-Work consensus mechanism and an ASIC resistant algorithm known as Energi hash that is quite the same as Ethereum’s Ethash.
It later transitioned to a two-tier consensus model running Proof-of-Stake as the first tier of consensus and a masternode network as the second tier. Interestingly, NRG is Ethereum compatible, but does not run on Ethereum itself. Not only do these masternodes offer usability, but they also provide some of Energi’s notable features.
Energi’s on-chain governance system and self-funding treasury system were passed to guarantee the long-term development of the project. It also acts as a means to attract developers and contributors.
What Makes Energi Exciting?
Energi consists of the same basic features that you’ll find with almost any blockchain project. These might include decentralization, trustless transactions, its HD wallet, and an on-chain governance model.
Additionally, it has put a spin on several common features that make them more exciting. These include:
Just like most of the other newly introduced blockchain projects, this network consists of a community-based governance model. When it comes to the Energi model, all stakeholders may submit a proposal for the community’s open consideration.
The masternode owners will then vote on those proposals to establish if they’ll be implemented or not. Apart from encouraging implementation by offering users a voice, this governance model was also chosen because it helps with scalability and enhances the network’s stability.
The Energi network is a fork of Ethereum. However, the masternodes of Energi enable this with relatively lower fees and improved transaction speed thanks to upgrades in their smart contract platform.
Since Energi consists of a 2 Mb block size and 60 seconds block time, users gain with fast transactions and minuscule fees. Scalability is also enhanced by utilizing masternodes, while the scalability of the network grows with the increase in the number of active masternodes.
DApps & Smart Contracts
With the network of dApps, the Energi network enjoys usability that can help it to achieve its objective of global adoption. The addition of smart contracts enhances the transparency, efficiency, speed, security, and trustlessness for the entire Energi ecosystem.
What’s more, smart contracts will help promote development. As a result, this will attract new investors and users to enhance the overall value of NRG as it gets significantly valuable as a currency for creating and powering dApps, and the base currency when it comes to the planned Energi X exchange.
The Energi Protocol Token & Governance Model
NRG basically started as a Proof-of-Work without ICO and without pre-mine. Besides, the mainnet launch was later announced and mining started fairly.
NRG’s first listing on CoinMarketCap was on August 24, 2018, and had an opening price of $0.264592. Afterward, the price jumped a bit higher by approximately $0.1 instantly, and spent a few months trading between $0.244958 and approximately $0.40.
The coin started trending higher in October 2018 after masternode payments started, and reached levels $1+ as November started. This rally is much earlier compared to the Bitcoin rally and marks the end of the crypto bear market when it comes to the broader cryptocurrency space.
Although the price dipped between January and February 2019, it was never below $0.54 and NRG was trading $1+ again by March. It remained between $1 to $2 in April, and then later moved to a range of $2-$3 in May 2019. The actual rally started in June 2019, and NRG reached an all-time high of $9.90 by June 25, 2019.
Who Is On the Energi Team?
Generally speaking, the Energi team comprises 60 committed and knowledgeable individuals. All these people dedicate themselves to blockchain technology, as well as the development of a decentralized network that’s community governed and self-funding. They also come from a wide range of disciplines, such as entrepreneurship, marketing, operations, and even development.
The founder and CEO of Energi is Tommy, a.k.a. TommyWorldPower from his YouTube and Twitter accounts. Apart from being a blockchain evangelist, he is also an educator in the blockchain space. His deep insight into how blockchain works and its potential applications were the foundation and inspiration of the Energi platform.
Ryan Lucchese acts as the president of Energi and oversees the day-to-day operations. Since he has a great background in software development, this is undoubtedly an asset for the Energi project. Ryan brings extensive background in physics before joining the blockchain revolution in 2011. He is deeply knowledgable and passionate about mathematics, data science, cryptography
What Funds Energi?
A self-funding treasury is another common feature when it comes to a masternode blockchain. However, Energi possesses one of the biggest percentage allocations to any masternode blockchain’s treasury. A whole 40% of the released NRG is directed to the treasury.
There are 1M NRG released monthly, and there is no cap on the overall coin supply. As a result, this provides the treasury with 400,000 NRG monthly to be applied for the development and marketing of the project. It is meant to guarantee longevity for the project, offering funds to enhance technology, compensate developers, and grow the community.
Since there is no limit in supply, Energi has allocated this huge portion to the treasury to enhance the decentralization of the blockchain, as well as to maintain the network’s performance.
How To Participate in the Energi Network
Are you interested in buying or trading your NRG? If so, there are just a few exchanges that you could apply. These include the likes of Uniswap, Kucoin, and Digifinex.
Digifinex consists of the bulk of the volume and turnover rates tend to be on the lower end for a coin containing such a big market cap. That means that liquidity might be rather challenging for those traders who are looking to implement large block orders.
After you have achieved your NRG tokens, you’ll need to move them off of those exchanges. And you must already have an idea of the risks that are accompanied by large centralized exchange hacks.
And if you just want to send or receive the coins and then “hodl” them for cost appreciation, then you could use the Coinomi wallet. It’s a third-party wallet that comprises support for an extra 500+ cryptocurrencies. You can find it on desktop and mobile across multiple operating systems.
Energi is not just a cryptocurrency project. Apart from being the evolution of cryptocurrency, it’s thoughtfully made to troubleshoot issues in existing blockchain implementations.