Parallax Coin: A merged mining Cryptocurrency

The latest new Cryptocurrency to be released is Parallax Coin. It uses the Scrypt-N algorithm, like Vert Coin, which makes it resistant to ASICs. ASICs are the newest and greatest Cryptocurrency mining machines, they outperform GPUs and CPUs by magnitudes, and are taking over the supply of mined Scrypt coins. This is why some coin developers choose to use an algorithm resistant to ASICs, so the small time GPU and CPU miners can stay in control of the mining network. This move is somewhat controversial. On one hand the GPU and CPU miners support it because it will keep their profits much higher for the coin, but on the other hand ASIC miners will completely ignore the coin, and since ASICs are taking over Cryptocurrency that makes it likely the coin won’t too far in the future. An analogy for this is if a lighting company decided to ignore electricity when it came out, and refuse to make light bulbs, instead opting to continue making oil lamps. This strategy might stay profitable for a few years, but eventually light bulbs would destroy their company.

There are going to be a total of 105.12 million Parallax Coins, with 150 Parallax Coins per block, and a new block every 1.5 minutes. A block halving will occur every year, which is when the block reward drops by 50%.

The thing that makes Parallax Coin unique is that it is a merged mining coin, meaning it is mined in combinations with other Scrypt-N coins. For example, one of the first Parallax Coin pools mines Vert Coin and Parallax Coin at the same time, splitting your hash rate evenly between the 2 coins. The benefit to this is it increases Parallax Coin’s network hash rate magnitudes above what it would be if it was mined alone, which protects the network from 51% attacks, and thus keeps transactions secure. When a network has a small hash rate, 51% attacks are possible, which can cause tens of thousands of dollars of losses. A 51% attack on White Coin occurred earlier this week with devastating results, since their network hash rate was tiny.

There is a small but growing Parallax Coin community, and about 8 pages of discussion on Bitcointalk already: There are many pools where you can mine Parallax Coin, and it appears it will be on some exchanges soon. The developer seems to be staying on top of it, and the launch has been without problems so far.

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