Stratis is one of the younger cryptocurrencies on the market. This digital token is somewhat unique in that its founders have become heavily invested in helping developers learn about how digital coins are produced and managed. It is a coin that was envisioned as a resource for corporations in the financial sector who wish to take advantage of blockchain technology. As such, it is not as easily traded in a peer-to-peer fashion as some other altcoins.
The History of Stratis
Stratis emerged with an Initial Coin Offering (ICO) on June 21, 2016. This ICO lasted until July 26, 2016. 915 Bitcoin were raised during the ICO and since the token was offered it has risen in value more than 705%. Clearly, Stratis is following in the footsteps of other Altcoins that have exploded in value in the months following their initial release. 98 million coins were issued following the ICO. About 14% of these coins were retained by the development team.
The purpose of Stratis was to allow corporate financial entities the ability to set up and manage their own blockchains. These blockchains would be private but their security would be guaranteed by the primary Stratis blockchain. This is financially advantageous for many companies who do not want the expense of setting up their own architecture.
Stratis is built on the C# Stratis Bitcoin Full Node platform. It functions as a near-complete port of the Bitcoin Core. Nicolas Dorier, a noted blockchain developer, wrote the source code for the Stratis platform. The company behind Stratis is based in London but has plans to expand internationally if demand for the token continues to rise.
The Strat is the native token of the Stratis platform. The coin gained legitimacy very fast because it was recognized by leading cryptocurrency exchanges and compatible with various wallets including Poloniex, Jaxx, and the Ledger hardware wallets. The team that works to develop the platform is filled with luminaries of the cryptocurrency world. These individuals include Chris Trew and Dan Gershony. Both men have more than a decade of experience in blockchain development.
Another core principle of the Stratis cryptocurrency is that it is a staked platform. This means that holders of the coin receive something similar to interest on their holdings. A staking wallet is required to take advantage of this feature. The official wallet of the platform is the StratisX Wallet which can be downloaded in a desktop version from Github.
Stratis is not a mined coin. It does not operate on a Proof of Work platform. Proof of Work cryptocurrencies allow individuals to participate in securing the blockchain and reward them with coins for resolving complex equations. Stratis instead is a Proof of Stake platform. Staking is when the coin is purchased and sent to a staking wallet which remains connected to the Internet duration of the staking period. The concept is somewhat complex to understand but the relevant premise is that staking allows owners of the coin to increase their holdings.
Both staking and mining cryptocurrencies can often be beyond the means of the cryptocurrency hobbyist. Specialized computer equipment is required and the resources consumed can be considerable. In many cases the cost of setting up a mining platform does not justify the potential reward. As an alternative, those who are interested in mining would be wise to consider a mining pool.
Genesis Mining offers one such mining pool. Individuals purchase hash power in the form of contracts. The mining is carried out on one of the secure mining farms owned by Genesis Mining in undisclosed locations around the world. The company is responsible for all the expenses that come from maintaining the equipment. Those who participate in the pool only have to pay the fee for their contract and reap the rewards of the mining process.
Stratis Use and Acceptance
The Stratis platform was not specifically idealized as a means of exchange. Rather it is envisioned as a means for corporate financial entities to set up their own blockchains for the purpose of processing transactions. Even so, because the token exist it can be used as medium of peer-to-peer exchange.
Stratis has partnered with the following companies in the months since its debut: Ledger, Microsoft Azure, Poloniex, Bittrex, Changelly, and Anycoin Direct. It is also available for purchase on a wide variety of cryptocurrency exchanges.
The most popular use of the coin thus far has been as an investment vehicle. Individuals purchase the coin with other digital assets or with fiat currency on an exchange. They can then hold the coin or trade it against other currencies.