With two new Euro-Gulden exchanges coming soon, the extensive software updates for Gulden itself and with the new Nocks 2.0 platform around the corner – to just name a few things – it’s not hard to imagine that Gulden is expecting big changes .
But let’s have a look first at where Gulden is now. What is Gulden? And why should I use it? All legitimate questions obviously.
Gulden is technically a crypto coin based on LiteCoin. LiteCoin is in its turn a derivative of Bitcoin. A lot of code that has been developed for Bitcoin can, with some adjustments, also be used for Gulden. This saves time, provides a robust basis and offers the ability to add only functionality that actually adds something. Gulden is by no means a Bitcoin clone, but rather a distant cousin. With its own development, unique code, features and future. For example, Gulden has a number of advantages over Bitcoin, such as very low transaction costs and an eco system in service of both the consumer and the retailer. For more information read this article on the differences between Bitcoin and Gulden.
But why Gulden, we have the euro, right? Yes. And there’s a good deal wrong with that. If the euro had been a crypto coin with all the features it currently has, no one would probably want to be associated with it, let alone use it. I’ll mention a devaluation of eighty billion a month, managed by some unknow gentlemen at high positions. In addition, you’ll need a banking account that costs you around euro 10, – per quarter. And if you want to transfer money over the weekend, you have to wait until the next business day. In addition, a transfer abroad is insanely expensive and lasts a week! etc etc etc .. Furthermore, all kinds of shaky banking constructions are set up, and no one actually knows anymore how much Greece has borrowed or not. In addition, the price fluctuates against the dollar and other ‘coins’. Still, we’re all in this boat, right? Read this article about the differences between the Euro and Gulden.
There are many prejudices against crypto coins. Much heard are the money laundering practices that should make it possible. However, what most people do not realize is that cryptocoins exist mainly because it is impossible to manipulate them. After all, all transactions are stored on the blockchain. This is a ledger that contains all the changes. So you can see exactly how much there is in a certain account. The only thing that’s unknown is the accounts owner. And even that is possible after some research, because the coins are of course bought somewhere or converted again to fiat at some point.
Therefore criminals have to do their best to stay out of sight. Sometimes a transaction is taken through a network of thousands of computers to become “invisible”. In short, cryptomoney is extremely transparent but enjoys some anonymity. At the same time it is decentralized and independent. Something that appeals to a lot of people. Your money is also really yours! Not from a central bank or government.
What is Gulden’s mission?
Gulden wants to be a global means of payment. Easier and cheaper to use than current currency. Where keeping Gulden and the apps are completely free of charge, only a small amount will be deducted from each payment transaction to maintain the Gulden network. This is usually not more than G0,005 so approx. half a euro cent. In addition, you can do more with Gulden than now with ‘normal’ money. Gulden could be programmed so you can e.g. spent them on a particular purpose only. Such as a personal budget or a customer card.
Everyone thinks to get rich with cryptocoins soon. Gulden distances itself from this and follows its own course, away from Bitcoin. It wants to be a real replacement for the current money system, for the ordinary man. Faster, safer, and also easier. In principle you must be able to do with Gulden everything you can with the Euro now, and more!
Currently, Gulden is already very fast, certainly compared to a Bitcoin transaction. But Gulden is getting even faster than it is now. In a few weeks, a payment will take place in seconds, to wherever in the world. In addition, you can earn interest on your Gulden witness account!
Blocks and Miners
The transactions on the Gulden network are processed by so-called miners. In addition to a transaction fee (now not more than 0.1 Gulden per block) they also get a blockreward for this. However, there are only a maximum number of blocks available per day. The miners together mine every 150 seconds a block. For this they are rewarded with 100 Gulden. Thus, 57600 new Guldens are “created” every day. After the introduction of the POW2/Witness update, the 100 Gulden blockreward will be divided into 80 Gulden for the miners and 20 Gulden for the witness program participants. So every 150 seconds, 20 Gulden will be available for paying the interest for the witness accounts.
Interest on your Guldens will work pretty simple. After the updates, you can create a witness/deposit account in the Gulden desktop app. This account then will receive interest.
How much interest or compensation you receive depends a little on how long you deposit your Gulden, ranging from one month to a maximum of three years, and on how many. A small estimate is that it could yield about a percent per month. In fact, it’s not interest but a compensation you get for monitoring the miners. This is a little technical but the depositor will help, automatically, to monitor the network. To do this, the deposit account must be connected to the internet day and night. A small computer like a Rasberry PI is sufficient for the task and an energy-saving solution.
In addition to all the benefits for consumers, the benefits for retailers over the current payment systems are also evident.
Gulden payments are cheaper than a standard PIN/debit card or iDeal transaction, especially for entrepreneurs who do little transactions or small amounts only. You do not need an expensive (pin) debitcardterminal with the corresponding monthly subscription fees. With Gulden you only pay a small fee per transaction. Gulden is very suitable for so-called micro payments because of its low costs. But accepting larger amounts is also possible!
Accepting a Gulden payment costs a retailer using the Nocks Checkout App 0.25% per transaction with a minimum of € 0.05 and a maximum of € 0.25. Where Nocks is the payment provider who builds a whole new ecosystem around Gulden.
€ 3.50 for 2 cups of coffee: 0,25% of € 3,50 = € 0,00875 euro. But the minimum transaction costs are € 0.05 euro, that’s all. For this you get a nice print-out of all transactions for your accountant and a direct pay-out into Euros if you choose so. This can be set in the app at your own discretion or preference.
That’s why more and more retailers switch over and accept Gulden payments. It’s nice to see, as an enthusiastic user, that more and more entrepreneurs are daring to take the step. Of course, as an entrepreneur, you weigh down the risks, like those exchange rate fluctuations. But you do not have any risks at all when using the Nocks Checkout app. E.g.: you want to sell something for 100 Euros, then the customer pays with Guldens but the shopkeeper receives the full 100 Euros via Nocks (less the five cents transaction costs of course).
More and more entrepreneurs join in, and more and more companies know Gulden. For example, Xenosite, a major business internet service provider, with customers like Subway, has been affiliated with Gulden for some time now. In addition, DeOnlineDrogist.nl, a Twinkle top 100 company, has recently offered the opportunity to pay with Gulden to his customers and processes more payments with Gulden then with Bitcoin already.
Soon, Nocks will come up with the new trading platform. Then it will also be possible for third parties to easily develop apps for the Gulden Blockchain. Think about an app for Concert Tickets (never buy any invalid tickets on eBay anymore), or Smart Money, money that knows where it should be spent at.
And of course, Gulden itself. It is now awaiting the roll-out of the witness updates. That will be done in five steps. But after that even more is coming. Shorter synchronization and even the long awkward payment addresses are going to show an evolution.
So keep an eye on GuldenBites.com. We (try to) follow all the news concerning Gulden, these are exciting times!