How to earn crypto with a smartphone?

by Patrick Gon

Historically, Satoshi Nakamoto proposed Bitcoin as a decentralized payment system. During the early stages, the operation of the system was as expected. However, Bitcoin began to face problems of scalability and decentralization with the increase in the number of users. Today, the community is actively seeking solutions and trying to avoid mistakes through new ways to solve these problems.

In 2017, the Enecuum project announced its own solution: a blockchain with master mobile nodes and support for several parallel blockchains. After two years of development and active tests, the project plans to launch the main network in December 2019.

In recent days, we analyzed the technical documentation of Enecuum, received comments from the developers and ended up focusing on the main mobile node of the project.

Consensus algorithm

Enecuum uses the custom Trinity hybrid protocol based on the Bitcoin-NG consensus and the Activity Test (PoA) .

A distinguishing feature of Bitcoin-NG is the separation of proof of work (PoW) mining and the publication of the transaction.

Bitcoin-NG has two types of blocks:

  • The key blocks are based on the PoW, a link to the previous block, a reward for mining and the public key of the miner.
  • The micro blocks store only transaction data. The key block miner is responsible for confirming the transactions during the time until a new key block is calculated.

PoA (Activity Test) is a hybrid consensus algorithm that combines the elements of PoW and Participation Test (PoS). PoW miners solve a cryptographic task and create empty blocks. These “blanks” will become full blocks after being signed by several randomly selected PoS miners.

Enecuum developers have significantly modified these algorithms: they added the concept of macroblock and PoA mining. In the Trinity protocol, transactions are not published immediately, but instead accumulate in a macroblock. Simultaneously, three types of nodes are responsible for creating blockchains: PoW (personal computers), PoS (currencies) and PoA (mobile phones).

 

The basis of the Trinity algorithm is a combination of three different concepts.

The Enecuum blockchain is formed as follows:

  1. PoW miners find and publish an empty macroblock, that is, a key block.
  2. Among the PoS miners, a PoS leader is randomly selected as LPoS. LPoS will act as the administration instance for the time until the next key block is launched.
  3. The leader receives the full version of the secret key from other PoS miners. A secret key is a session key needed to sign micro blocks, which is distributed among the PoS miners. Only PoS miners selected with the full version of the secret key can accept and sign PoA miner blocks.
  4. PoA miners sign micro blocks with transactions and send them to LPoS. Enecuum uses ID-based cryptography and that is why PoA miners do not need to download and recalculate the entire blockchain. The PoA group verifies the authenticity of the PoS leader after verifying his signature. The leader can sign it only if there is a full version of the secret key.
  5. LPoS signs the micro blocks and publishes them in the block chain with a transmission request.
  6. PoW miners collect and combine the key block and micro blocks signed in a macroblock and publish it in the blockchain.
Creating macroblocks in the Enecuum blockchain.

HyperDAG Technology

Enecuum supports the creation of blockchains that run simultaneously as part of a main blockchain by HyperDAG media.

Note that the number of transactions increases with an increase in the number of blockchain branches. During the tests, Enecuum was able to reach a speed of 18,000 transactions per second.

SHARNELL Smart Contracts

Shared Noncommutative Linear Exponential Logic (SHARNELL) is a smart contract based on linear logic and a set of simple operations (hash, signature verification).

By applying linear logic and the operations listed above, a smart contract could be described as the result of an arbitrary function. In this way, errors can be found and the execution time of a smart contract can be estimated at the compilation stage.

ENQ Token

Enecuum has its ENQ utility token. Is used for

  • reward the miners;
  • payment of transaction fees;
  • issue new tokens within the network;
  • smart contracts

Native ENQ tokens can be purchased in the SUEX exchange  . KuCoin , CREX24 and GRAVIEX exchange commercial tokens of the ERC-20 standard.

In the first quarter of 2020, Enecuum will launch the migration of ERC-20 tokens to the main network.

Mining

Enecuum has three types of mining: PoW, PoS and PoA. PoW mining is designed for personal computers. PoA mining can be done on the smartphone. The operation of PoS requires a server.

The reward for the mined blocks is distributed among the miners. PoW nodes receive 10%, PoSs – 30%, PoAs – 60%.

Enecuum has a two-level referral program for PoA miners integrated into the protocol. Both the referent and the referral receive an additional 10% mining reward.

Mobile miners need to have at least 25 and a maximum of 25,000 ENQ. The owners of the 100 largest network wallets can become PoS miners.

Only PoS miners receive transaction fees in Enecuum. At this time there are no network commissions. The transaction fee will be 0.001 ENQ after the launch of the main network.

Mining Tokens

Mining tokens are tokens published by the user for PoA mining on the Enecuum network. They can be used to expand the community and crowdfunding.

The project plans to create a market where users will choose tokens for mining based on the price, the return coefficient of the investment and the current trading volume.

No special hardware or software is required for the creation of mining tokens. Token parameters: your name, issuance period and total supply, are set out on the Enecuum website.

Smart backup

Smart staking is an opportunity to back up with small wallets. Thanks to intelligent support, PoS miners can earn more and coin holders can receive part of the reward for making transactions.

The smart backup initiator publishes an online business plan. This plan indicates how many tokens the initiator plans to collect, how much he will earn as a PoS miner and what percentage of tokens the token holders will receive.

The initiator takes risks. A smart contract freezes its tokens in the amount of payments to the participants in the contract. Users will receive these tokens for any result.

Smart backup allows users to gain transactions that cannot become PoS miners. In addition, it encourages PoS miners to work for the benefit of the network.

Mobile apps

Enecuum has developed two mobile applications used to wallet and run a node.

The wallet is available on Google Play and AppStore . Currently, you can only get the node application from the Enecuum website on an Android device. Minimum requirements: Android 4.4, 1 GHz processor, 1.5 GB of RAM.

Applications have a similar interface. Once you become familiar with one application, it will be easy to deal with another. To begin, you must create or import public / private keys that are paired. After that, you can mine tokens and access your wallet.

The mining application runs in the background. To be reliable, it must allow automatic execution and background activity. The node hardly affects the battery. The application consumes approximately 1–1.5% of the load. By way of comparison, Telegram consumes 4.5%.

Profitability of mobile mining

The reward for PoA mining depends on three parameters: the number of backup tokens, the computing power of the phone and the quality of the connection (the most important).

The computing power of an average smartphone is sufficient to sign micro blocks, but the phone will not receive a reward if it does not send the signed micro blocks before the publication of a new key block. The main rule of PoA mining is to always be online, that is, active.

During ten days of mining in Xiaomi Mi5, we obtained 22 ENQ. After the first week, we obtained 16 ENQ, a little more than the Enecuum provided in the ROI calculator. Although the node was not online for several hours, the weekly mining yield was 1.8%.

The profitability of mining depends on the total number of tokens backed up. At the time of writing, the ROI for the maximum stake of 25,000 ENQ (US $ 545) was 71% (US $ 390). The profitability of the referrals was higher: 79% per year (US $ 430).

Equipment

Enecuum is an international project based in Hong Kong. Among the developers of Enecuum are:

  • Prof. Sergey Bezzateev – head of the research department, professor at the Faculty of Information Technology Security SUAI, author of more than 50 publications in the field of cryptography and information security.
  • Mikhail Sayfullin – Project CEO, in business since 2002, in IT since 2014.
  • Konstantin Zhidanov – CTO of the project, developer with programming skills in low-level languages, SUAI professor.

Conclusions

Enecuum is a project with an interesting hybrid consensus algorithm and a low entry threshold for users.

Mining in mobile phones requires virtually no investment: it only needs one application and 25 ENQ (US $ 0.5). The Enecuum test network has more than 1,200 mobile nodes from 50 countries.

The location of Master nodes can be seen in the Enecuum blockchain explorer.

The combination of three test algorithms is expected to avoid problems with the centralization of the network: the concentration of computing power in regions with cheap electricity and the taking of power by “rich wallets.”

Now we are waiting for the launch of the main network to see if Enecuum is successful.

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