What is Electroneum & How Does it Work? - ETN for Beginners
Electroneum, also known as ETN, is a user-friendly and mobile-oriented cryptocurrency, which allows for instant transactions through its native system and has many users.
The project was launched in September 2017 and has a reputation for being the first cryptocurrency based in the UK after it accumulated $40 million for its ICO funding.
The cryptocurrency is a payment and exchange token that has a total circulation of 21 billion that will never be increased — the current circulating supply stands at 17.84 billion. ETN is used to send or receive payments, which can be done in person or through remote means.
When we contrast this with fiat currency transactions that can take up to several days to complete, ETN can be transferred to just about anyone in the world instantaneously and best of all, at virtually no cost at all, which is one of the main benefits of Electroneum.
ETN can also be stored in several ways, and these are a digital wallet also known as a hot wallet, or a paper wallet known as cold storage.
Why Was Electroneum Invented?
This project was created to provide quick and safe crypto transactions with low fees for the unbanked population that makes up billions of people in the world’s population.
Aside from providing people with cheap and easy ways to spend money across the entire world just with the usage of their smartphones, Electroneum even has its wallet manager that was launched in December of 2017.
The CEO, Richard Ells, first took an active interest in cryptocurrencies in 2015, knowing that blockchain technology could change the world for the better. As such, he sought the technical abilities of the team known as Retortal to develop their own cryptocurrency.
The main reason Electroneum was invented was to make it easier for people to use cryptocurrencies and the technology behind them and benefit from the transformational nature of blockchain technology. He knew that mobile payments could be instantaneous, and before Electroneum, there were not many options that provided this service.
How Does Electroneum Work and What Technology Is Behind It?
When we discuss the Eletroneum blockchain and the technology behind it, it essentially takes advantage of a unique algorithm known as Proof of Responsibility (PoR). Built upon the Monero codebase, PoR allows for transactions on a decentralised blockchain to be made.
Featuring built-in privacy features, Electroneum uses what is known as a “stealth address” — a one-time public key that can prevent recipient funds from being linked with their wallet. This address also has the possibility of being audited by a third party to prove the transaction actually occurred.
Transactions on Electroneum are also very fast, with dynamic fees based on the level of traffic on the network.
Is Electroneum Real Money?
Electroneum is the name of both the company that has developed the cryptocurrency and the actual currency itself. The symbol for this currency is known as ETN. The cryptocurrency itself reached an ICO of $40 million.
Fees and Expenses of Electroneum
Each transfer of ETN is subject to a TX fee of, at the time of writing, 0.1 ETN which is known as the minimum TX Fee. This fee is based on a multitude of factors, and these include the number of blockchain inputs, the speed of desired TX on the Electroneum’s blockchain as well as the number of splits required to create a TX of the required size.
To cover the TX Fee, you are also deducted an Automatic Handling Fee as a sender when you initiate a transfer. You will then be refunded any unused amount of the Automatic Handling Fee once the TX Fee has been calculated. This Automating Handling Fee is 5 ETN.
Moving forward, the minimum withdrawal limit is at 0.01 ETN for any transaction.
What Are the Benefits of Electroneum?
ETN aims to be used in everyday transactions for buying ordinary goods and services and can also be used on specialised marketplaces such as Anytask.com.
AnyTask is Electroneum's global freelance platform, and for the first time ever enables the unbanked to earn crypto by completing online digital tasks. Unlike other leading online platforms such as Fiverr, which charges freelancers up to 20% fees, sellers pay zero fees for using AnyTask.
AnyTask is unique in that buyers pay with a credit or debit card and freelancers receive their payment in ETN. The objective with AnyTask is to provide online freelancers — a sector that is expected to grow fourfold to $2.7tn by 2025 — with a full crypto ecosystem where users can earn crypto and use it as easily as any other medium of exchange.
Additionally, ETN holders can receive mobile airtime, data top-ups, prepaid electricity meter pop-ups, and everyday essentials such as food and water, taxi rides and more.
The Electroneum app enables this by allowing the purchase of products or services through the use of ETN in more than 140 countries worldwide.
Businesses can also make use of the platform to increase customer acquisition and retention, as well as ARPU, reduce vendor-to-operator costs, improve their net promoter score, drive vertical sales, and generate new revenue streams.
Accepting a new form of digital currency could increase a business’ footfall by attracting a wider range of customers who use ETN.
Can Electroneum Be Used Anonymously?
Electroneum was originally based on the Monero blockchain, carrying over features such as its stealth mode for public transactions to keep users’ balance anonymous. Now, the platform has developed in a different direction to its Monero roots. By visiting the ETN blockchain explorer, users can select transactions, as well as a list of addresses that are not real wallet addresses to protect identities. The stealth address essentially uses a one-time public key to protect the recipient’s privacy.
How Safe Is Electroneum?
Electroneum wallets feature different levels of security. If you are looking for the most secure option, their paper wallets offer the highest level of security. On the other hand, the in-built app wallet offers a higher level of convenience, but at a cost to security, as this essentially turns it into a hot wallet which means hackers could attempt to steal funds.
Hot wallets can be exposed to malware, phishing attacks and hacking, however, you can stay secure by taking precautions, such as regularly changing your password and keeping your software up to date.
What Teams Are Working on Electroneum Development?
The merits of a cryptocurrency project can often be put into context with an analysis of its development team. Electroneum has a well-established team with strong experience in the sector.
Richard Ells is the Founder & CEO, with Nick Cook as Head of Operations, Barry Last as Head of Development, and Chris Harrison as Head of Blockchain.
There’s also a team of Advisors and Advocates, a Development Team, a Marketing Team, and a team for Admin and Operations. At the time of writing, there are around 50 people dedicated to working on Electroneum’s development.
Which Financial Institutions Are Invested in Electroneum?
One of the main ways Electroneum generates value is through its AnyTask.com platform, which features freelancers that are paid in ETN.
On 1 October 2020, Blockchain for Europe accepted Electroneum as its 10th member - Electroneum joins established firms in the crypto space, such as Binance, Fetch.ai and Blockseed.
In October of 2020, Locktrip, an online travel reservation site, added ETN to the list of payment options. Locktrip subsequently now offers a 20% discount for any bookings paid for using ETN.
On 5 November 2020, Host Havoc also added Electroneum to its list of payment options.
On 25 November 2020, Electroneum became the number one crypto provider for mobile airtime and data globally, serving a total of 163 countries, and as such, a few days later, MeconCash added Electroneum to its wallet application.
The Electroneum Wallet manager is the official way to store Electroneum. Users can access this mobile wallet through the Electroneum App.
This is what is known as a hot wallet, or in other words, a wallet that is connected to the internet and has a higher risk of getting compromised than a cold wallet.
Electroneum also offers this for more security-savvy users with an offline wallet generator, for saving wallets as PDFs. Simply open the PDF, print the key sets, and use that paper wallet in the future.
Is Electroneum Worth the Investment?
The answer to this question will depend on you, and what your investment goals are. If you want a solid return, this is difficult to answer, as all cryptocurrencies are volatile and unpredictable.
If you want to engage in the world of cryptocurrency investing, you should always invest with the amount of money that will not ruin you financially or set you back a lot even if you end up losing it.
There are many experts online that have speculated and concluded that Electroneum is a worthy contender to this market and will be here for a long time. Due to its development and real-world implementations, as well as its high level of convenience, it could increase in value over the next few years. Keep in mind that there are no certainties or guarantees in the world of investing. Get the app here on the Google play store and here on the iOS App store.
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Frequently Asked Questions
There will be a total of 21 billion ETN coins, currently almost 18 billion, which leaves another 4 billion that has been yet to be mined.
Once you invest, your coins will be allocated to your wallet and on my.electroneum.com within a few minutes of the transfer being confirmed.
The offline wallet is very safe and is unlikely to be hacked or compromised in any way.
Proof of Responsibility, or PoR, is a new mining paradigm that tasks miners with two primary responsibilities; maintaining the integrity of the payment network and spending assisting in Electroneum’s humanitarian agenda for reducing inequality.
A 51% attack is an attack where someone takes over 50% control of the hashing power of a cryptocurrency.
Hashing power is the rate at which the mining rigs can solve mathematical problems.
You can restart your device, reinstall the application, and re-log into your account. If this does not work, contact Electroneum for customer support.