Eureka Coin (ERK) is a native cryptocurrency of the Eureka blockchain. As its website mentions, the Eureka blockchain combines the features of multiple blockchains into a single decentralized ledger. The state-of-the-art blockchain seeks to support advanced blockchain technology to be widely used in decentralized applications (DApps) of various industries.
Blockchains utilize smart contracts to facilitate and validate credible transactions without a 3rd party. However, blockchains like Bitcoin and Ethereum mostly rely on Proof-of-Work (PoW) to verify transactions. The process is expensive, but it also limits the scalability potential of networks. An inefficient validation system also restricts mass adoption of the blockchain network. Eureka aims to maximize this adoption of decentralized ledger technology and facilitate the quick transfer of information across organizations at lower costs.
According to its whitepaper, Eureka envisions providing DeFi (decentralized finance) solutions in industries like gaming, finance, social media, information technology, etc. Eureka runs on a UTXO model, giving the network an advantage while validating on-chain transactions. UTXO stands for ‘Unspent Transaction Output,’ referring to the amount of digital currency remaining or unspent post a cryptocurrency transaction. The consensus mechanism of the Eureka coin ensures that the value is not distributed among external entities. Instead, only users holding the native tokens can mine new blocks and receive rewards.
Eureka combines Bitcoin and the Ethereum ecosystem to expand network adoption among a more extensive user base. The network employs a user-friendly infrastructure, allowing developers to create, store, and trade the tokens. Eureka features self-governing sidechains or additional blockchains that enable quicker and cheaper transactions.
Eureka supports humanitarian foundations like ‘The Eureka Tree of Life Foundation’ and ‘The Eureka Development Foundation.’ The former encourages independent charities. The development foundation wishes to reward developers and users for upgrading and increasing the use of the Eureka blockchain among communities.
The native Eureka coin or ERK powers the protocol supporting the Eureka blockchain. The network encourages developers to purchase ERK to conduct transactions successfully. Users require ERK tokens to use the applications, smart contracts, and additional sidechains on a decentralized ledger. As per its whitepaper, Polaris Universal, a development company with multiple businesses, including a cryptocurrency mining farm, utilizes the company’s profits to burn ERK. Burning of the Eureka coin implies that the coins are removed from circulation and sent to anonymous wallet addresses. The process ensures that retrieving ERK coins is impossible. Eureka burns 10 percent of the transaction fees to stabilize the value of ERK. Users who stake the Eureka coin can earn staking rewards in ERK tokens.
