There are over 160 places to pay with Bitcoin in Prague including cafes, restaurants, and shops. Prague is also one of the top crypto cities according to Forbes. (https://www.forbes.com/sites/alexandratalty/2018/07/31/the-top-10-bitcoin-cities-in-the-world/#3b783cac4565)
No wonder, Czech Republic might seem like a tiny country in the middle of Europe, but the community around crypto is huge and active there.
Plus this country was one of the first countries in the world to take steps in regulating cryptocurrencies. And did you know that famous Trezor wallet comes from Czech?
We 've decided to take step towards our Czech users and from now on, you can deposit or cash out Bitcoin in Czech Koruna. Coingi now belong to a few exchanges which supports Czech Koruna.
Bitcoin has been dealing with its high fees and delays in transactions for quite a time now. In this article, we would like to introduce you Lightning network, as a new solution for those problems.
Here in Coingi, we welcome each new attempt to bring Bitcoin into everyday life. Since Lightning Network is getting more and more popular, we've decided to implement it into our exchange in future too.
Soon you 'll have the ability to deposit Bitcoin on Coingi exchange faster and cheaper.
Why the Lightning Network is needed?
Lightning network is basically a solution to Bitcoin’s inability to scale. Bitcoin was designed as a network which would work across countries without relying on traditional financial systems and has been around for 10 years already. Its first layer was developed in 2008.
But as its popularity grew, Bitcoin began to face some practical issues regarding payments.
To take an example: paying by card in a grocery store takes a few seconds. While with the Bitcoin it could take minutes, even hours, to finish the payment.
To have an even more accurate overview, Bitcoin is able to proceed around 7 payments per second and VISA is able to process up to 45,000 transactions per second. And then there is Lighting Network promising millions of transactions per second (https://lightning.network/).
That is why a few years ago a discussion began, on scaling Bitcoin for fast payments. News about Lightning Network may seem new, but implementing the fastest financial process in the world, has been under development for some time now.
Lightning Network is not a new coin or ICO! It is the second layer of Bitcoin, that helps with micropayments. Think of it more like a Bitcoin extension.
How does it work?
The Bitcoin payment process was meant to be slow due to security reasons. However, currents users who are going to use Bitcoin rather than just keep in wallet, are not very eager about this important feature. That is why plenty of alternative solutions started to pop up.
So far the best one seems to be Bitcoin's Lightning network.
When we pay with Bitcoin, every tiny payment is written into a blockchain and stored forever. That is causing a slow process.
THe idea of Lightning Network, on the other hand is, not write all the transaction into blockchain immediately, but rather do several of them ''off the chain'' and write on the blockchain only the final amount (settlement layer). So when two parties decide to transit money, they open payment channels between each other with deposit made upfront. As long as they are exchanging funds, the whole action happens off the chain.
Channel can be open through Lightning Network wallet with two signatures - ours and partners. Funds insert there can only be accessed and closed by both of those signatures. If one of the participants would try to close the transit alone, there is then a danger of money lost.
To simplify it, let's think of that as an agreement between two friends. Both bring the funds (Bitcoin) and store them at the bank. Then open a paper notebook together (Lightning Network channel) and start to write down all transactions made between each other. Without touching the real money stored in a bank. This paper would be the payment relationship between them and the bank (blockchain) is not present during those micro transits. Once transfers are done and both parties agreed what the payment balance is, the money from a bank is taken and use to finish that operation.
Blockchain does not need to know about 100 little payments, enough to put there the final one.
A different point of view brings Andreas Antonopoulos. His explanation of ‘’streaming money’’ worth listen:
Who is using it now? Almost ... everyone!
What is the situation right now? There is already a number of businesses, that accepts payments by Lighting. Currently, Lightning Network has already a total of $2 million worth of Bitcoin. And the whole network has increased by 167%in November 2018!
Every revolutionary tool we use nowadays, made it through history only thanks to adaptive companies and customers eager for change.
And it is the same case with Lightning Network now.
Because as you can see, it is not only ''geek'' companies anymore, who allowed their clients to pay by Lightning:
1) First of all, there is Bitcoin Lightning Wallet available on Google Play, with plenty of positive reviews already, making it easier for a broad audience to get along with Lightning payments.
2) Three months ago, a Lightning Network payment option was added for Woocommerce users. Those can now simply add a new payment gateway and accept Bitcoin through Lightning Network.
3) Another service provider, who decides that accepting Lightning payments would be a great idea is VPN company TorGUard.
4) One of the biggest players seems to be a company called Bitrefill. On their website are available prepaid vouchers of companies like Amazon, Hotels, Uber or Viber. Most welcomed by their current customers are prepaid phone vouchers:
''Bitrefill lets you refill your prepaid phone, pay bills, and buy vouchers with Bitcoin and Litecoin. We support prepaid SIM cards from over 600 operators in over 160 countries, and vouchers and bills across 30 services.''
What's so great about all that? Even though Amazon itself does not accept payments by Lightning, Bitrefill sells vouchers which can be used there.
This is a great opportunity not just for B2C customers, but for smaller business who wants to reach a new type of clients too!
5) If you ever research any pieces of information related to Lightning Network, then you have stumbled to all the ''coffee shops'' examples. Well, good news, there is actually a place similar to this popular example: Energy Kitchen, located in Bern, Switzerland decided to accept LN payments from now on.
At the beginning of the year 2018, no one would expect such a growth within several months, and here we are, almost ready to pay for our daily coffee with crypto.
How to start using Lightning Network
As you know, Lightning Network works by creating channels: two participants create a Lightning payment channel that contains a particular amount of Bitcoin which is locked up on the network. The only way to spend is to confirm it by your and second sides signature. What could sound complicated in theory is actually very simple to do in reality.
More technical tutorials are available online, but when using the app, the set up fits into two steps:
1) Download a and install wallet supporting the Lightning Network.
2) Choose prefered action (screenshots taken from Bitcoin Lightning Wallet)
Bitcoin Lightning wallet: Be sure to save a mnemonic phrase once a new wallet is created. Having a mnemonic phrase is the only way to recover your balance in case of any bugs or phone loss. You will be asked to do so, once the app is installed.
Is Lightning Network growing anyhow?
Its popularity went up mainly during 2018. See this picture of Lightning Network in January 2018 vs October 2018:
What about the fees and speed of the payment?
Even though that fee is not required while sending a Bitcoin, it can definitely help to speed up the process. Sending payment this way could be costly then. On the other hand, Lighting has almost zero fees. What does that ''almost'' stand for? Unfortunately, we do not have a proper answer in terms of % from a transaction yet. There is no withdrawing fee, but you are paying for a closing the channel. Not miner fee though.
Are my money locked at some point?
You can always access your money and move them wherever you need. So the answer is yes and no. Yes, you choose a particular amount of Bitcoin to ''put'' onto Lighting, this amount will just be there ready to spend. But once you decide to take it back, you just do by closing the channel. The Bitcoin used through Lighting is also not signed off the blockchain in any time during the process.
Is the Lightning Network open source?
Yes, it is.
Is there some protection about double spending?
The Lightning Network actually has a cheater protection built it. One of the biggest concern about safety is, that while you are broadcasting the money, you are still basically keeping them with you and actually send them once the channel gets closed. So why not to broadcast the money to more people and just take your bitcoin and back off? Well if you would try this little trick, the fraud protection in Lightning Network would send your money over to the party you were streaming to. Not just the amount you were about to pay, but the whole bulk of money you have put into Lightning Network. Sounds harsh but works as a good prevention.
Can I invest in it, or make money somehow?
Unfortunately not, maybe with a lots of effort, you would be able to earn few cents, but it's not worth the time.
Who are the creators?
Joseph Poon and Tadge Dryja created the idea in 2016. Currently developing with help of Lightning beta, Acinq, Lightning Labs and Blockstream and several independent developers.
Has a Lightning Network its own blockchain?
No, Lightning is dependent on the Bitcoin blockchain.
How is practical for exchanges?
Here in Coingi we are going to implement Lightning Network in order to provide our users faster and cheaper deposits of Bitcoin.
Is the Lightning Network only open to Bitcoin?
There are currently attempts of Litecoin, Monero or Vertcoin to participate on Lightning Network. Also Etherium designs its own off-chain solution called Plasma.
There are threats associated with every growth, and security is discussed while the popularity of Lightning payments grows. To protect users against potential double-spending or theft, fraud protection is built into the network already (see FAQ). But then it is the responsibility of users to protect their money.
Just as we take care of our passwords and data on our cards and bank apps, we should do the same for Lightning Network payments:
1) One of the recommended precautions is to always have Lightning Network on. If a user goes offline for a few days, there is a possibility that their funds could be stolen. This already happened to one unattentive user.
2) Another issue to be aware of is that uninstalling the app may also result in lost money, because an updated balance of funds history must be stored somewhere. Backup solutions are currently being developed, although none have been completed at the time of writing.
A different possible threat is to other coins. Those could lose their market share, because they might not be needed anymore. For example, Litecoin, which is designed for faster transactions, will not be needed much if Bitcoin can complete microtransactions faster ''itself''.
This will lead to a clearance of the crypto market as we know it, and increase the value of Bitcoin. FInally.
To sum it up
Lighting Network is going to bring faster and more effective use for Bitcoins micro payments. Future plans are, to add ability swap coins, once more cryptos than Bitcoin will get on. Lighting Network is already working and has growing user base so if you are up to try something new, enjoy.
There were several changes made in the background, for easier navigation on a site. Our main priority has been a better layout for a mobile version of Coingi website. That was achieved by implementing PWA technology, which basically makes the website behave like an app, when accessing through mobile devices
What does it mean to you?
The web is now loading instantly on phones and never shows ''downasaur'', even in uncertain network conditions.
The site is responding quicker to users.
No more slow scrolling.
Completely native app experience without the need of installing one.
Next thing on the background, is newly remade API connection with servers of Coingi.
We present you with the affiliate system that rewards our customers for bringing their friends and new clients to our website. Thanks to this referral system you get 50% commision out of the fees paid by each new customer invited in this manner. Go to your administration page and look for Affiliate tab. There you can find your unique code with which you can invite new members to join our community. If the receiver of the code uses it to sign up to the page within 30 days from receiving it, you will be getting 50% commision out of the receiver's supplements.
For better individual tracking, we are taking advantage of Advanced tracking using tags. You can track the visits and signups that you are getting from multiple traffic sources by adding the tag parameter (&tag) to your referral URL.
For example, to track the visits and signups from Source 1, add &tag=source1 to your referral URL and then promote that URL (https://coingi.com/?r=XTPLJ7&tag=source1) and you will be able to see the signups and visits from that source.
You can create as many tags as you want on the fly and they can be a string of upto 150 characters comprising of small and large case letters and numbers.
You can track individual users' profits for the last 30 days or for the whole period.
We are delighted with the increasing rate of visits and trades. Of course, this influx results in additional strain on our servers, affecting performance.
However, thanks to the design of Coingi’s infrastructure and scaling, a new instance of Coingi could be established, decreasing the loading time of the website. In response to the requirement of increased performance, Coingi is simply going to start another instance of itself. In the event of an imminent system overload, main servers can alleviate some stress to this instance. An infinite number of these parallel instances are able to be created, thus, enabling system performance to accomodate the changing needs of the Exchange market.
We have another great news! On Coingi, we have started to support the USD and EUR fiat currency. We are glad to announce this brand new feature of our Cryptocurrency market which will allow you to trade crypto currencies for USD and EUR. Until now our customers have only been enabled to trade in different pairs of currencies. We are delighted to bring this feature to you as we now offer service comparable with other stock market competitors.
For deposits and withdrawals, we are first to support FIO banka, which is under jurisdiction of EU. That means you can take advantage of the service supported by this institution – namely SEPA payments – these allow you to send EUR within the boundaries of EU. Payment of this sort usually takes 1-3 workdays to proceed.
We also support international Wire transfer payment. With this method a client is able to pay in EUR as well as in USD and the process usually takes 2-4 workdays. In order to execute an international payment, however, it is obligatory to fulfill the following requirements: Minimum international deposit amount is 50 USD/EUR, International bank transfer deposits carry 0.05% deposit fee on our side (minimum fee = 7.5 USD/EUR).
We are aiming to expand our partnership among new institutions so we can ensure the steadily improving quality of our service – this way we can provide the best service to those who matter the most – our clients.
With the support of FIAT currencies, we are tied with several rules which we as a Cryptocurrency market, have to obey. Probably the most important one is the Verification of User which is required by AML/CFT policy – this policy is a countermeasure to money laundering and terrorism financing.
If you want to deposit or withdraw FIAT currency you need to verify your account first. After the verification, staff will ask you for an ID card and a document which proves the authenticity of the address that you gave to the company. At the same time, your photograph is required to verify that it is really you on the ID card which you will provide the staff with. More information about the Verification process is to be found after logging-in in the Verification tab.
By no means your photographs will be provided to third-party companies. This is a standard procedure when verifying your identification, which is used by most of the crypto-stock markets.
On August 1st, 2017 there is a proposal to make changes to the bitcoin software. This proposal, known as Bitcoin Cash, is likely to create a fork in the Bitcoin network. This means that after August 1st, 2017 there are likely to be two versions of the Bitcoin blockchain and two separate digital currencies.
In the event of two separate blockchains after August 1, 2017 we will only support one version. We have no plans to support the Bitcoin Cash fork.
This means if there are two separate digital currencies - bitcoin (BTC) and bitcoin cash (BCC) - customers with Bitcoin stored on Coingi will only have access to the current version of bitcoin we support (BTC). Customers will not have access to, or be able to withdraw, bitcoin cash (BCC).
Customers who wish to access both bitcoin (BTC) and bitcoin cash (BCC) need to withdraw bitcoin stored on Coingi before 11.59 pm PT July 31, 2017. If you do not wish to access bitcoin cash (BCC) then no action is required.
As always, the safety of your funds remains our number one priority. To this end, as a security precaution, we will be disabling bitcoin deposits and withdrawals on 31 July 2017 at 23:00 hrs UTC to ensure that all BTC funds stored at Coingi remain secure. Trading will remain unaffected throughout. Deposits and withdrawals will be resumed only when we deem it safe and prudent to do so.
We will keep you updated on this event through Twitter.
As a result of our continuous strive to improve our services, we’ve created a new, special API function for external websites. By doing so, we would like to meet the needs of those developers who try to make their own contribution to the bitcoin community - be it creating and improving applications or creating various graphs and price comparison websites. Thanks to these efforts the life within the bitcoin community becomes easier and also, at the same time, probably easier to grasp for those who are still bitcoin novices.
Our newly introduced API function will allow the developers to get all the necessary information they need in one simple call. We hope that you, developers, see this new function as an interesting opportunity, so we can therefore contribute together to the development of the bitcoin community, helping to raise awareness not just of bitcoin, but altcoins as well.
What information can be obtained using this application?
In one, single API call the developer can mainly obtain information on which currency pairs we’ve supported in the last 24 hours, their turnover and the turnover denominated in bitcoins.
We hope that his function finds its use especially on websites that compare particular currencies or exchanges against each other.
You are just looking at the result of 20 months’ constant hard work. At the beginning we set ourselves a daring goal: to build a decentralized, scalable, and of course stable exchange where everyone is able to buy and sell Bitcoin and other cryptocurrencies according to their own consideration.
We will not conceal the fact that we had to overcome a range of problems and ponder the tiniest details in order to succeed in our mission. The original launch plan had to be postponed by several months in order to accomplish more detailed tuning and testing. However, the exchange system now reflects all the invested effort and the delay has been worth it absolutely. The result of our hard work is a bullet-proof exchange with automated processes which can be envied by even the classic online exchanges.
In projects of this type and focus, one can’t afford to make even the tiniest mistake, that is why we have invested most of our time to testing against all security risks and to simulations of various attacks by hackers and other varieties of cybercrime. Thanks to that we have managed to build a robust information system which is not only safe, but also excellently scalable.
The Coingi cryptoexchange system runs on approximately 30 servers which communicate together via an encrypted VPN network. All communication is signed in a way that these processes cannot be interrupted in any way. The aforementioned scalability enables us to keep increasing the number of servers indefinitely. We aren’t even limited by the location of the servers, frankly we can be everywhere.
Only the best for our customers
Users have a very clearly organized and intuitive web interface which communicates with the system exclusively via API. It is for reasons of speed and the aforementioned scalability. Thanks to that we are able to provide a full API interface to everything we offer our users.
We are also preparing a wide localization for our program. Coingi has been translated into more than 10 languages and we would be very thankful if you helped us extend these translations much more. It is a smooth process thanks to a service called Crowdin. Please find more information on translations and how you can contribute in the footer of the website.
We would be delighted if you tried our system out and eventually even sent us your tips and notes on the site’s possible improvements regarding its functionality. We will definitely address them in detail, because Coingi is here primarily for You!
The launch date of the service is closer than you think!
After several months of development we would like to announce the launch date of COINGI.
At the moment, we finished the process of development and we started testing the beta version of COINGI system. Which means that all parts of the system are programmed, API is ready, user interface is complete, data synchronization and data migration are set and servers of individual subsystems are connected. All operational processes are defined, so it is time to start testing in full operation.
The benefits of the testing operation
Speed and stability
We will work on every detail of the stability of trading before we launch the full operation. During the beta version testing, we will focus mainly on the ability to process a big amount of users‘ commands. The stability of the system will be guaranteed even during 100 000 transaction per second and even during the shutdown of some servers.
We focus on a detailed examination of all potential threads that could compromise the security of the system. We want to guarantee 100% security of the service in full operation. That is why we devote enormous efforts to security testing and why the realization of these tests takes the majority of testing time. We employ security experts and we also hired an independent external audit to implement and verificate the results of the tests.
The majority of virtual currencies are saved in offline mode, which prevents online thefts. Online wallets use ony certain amount of money, that is sufficent for the operation of the platform at the moment. In case of large transactions, the funds are saved of withdrawn from offline wallets through controlled process, that guarantees full protection. The whole platform is protected by the system of internal control of account balances and currency movements.
Online wallets are fully protected! They work completely separately and they try to operate “intelligently“. It means that they connect to the platform by themselves, they determine the requests for payment and they control if the requests correspond to reality. They check the collected data about transactions by using checksums and procedures, so the number of bitcoins at the website corresponds to the number of bitcoins recorded in the database.
You can trade virtual currencies at many websites, but not every site can provide fast and secure transactions together with the advanced functions of the platform. This is the main reason why we created COINGI service!
The development of the main part of the system is complete, but we are still working on new improvements, that will be implemented step by step. We are working on new functions that will be interesting for the users. We are permanently developing the system, so COINGI can keep on top of virtual currency websites.
Segmentation in order to improve performance
The system was designed to be able to process worldwide transactions of tens of thousands of users per second quickly and seamlessly. That is why the system is divided into several parts, which communicate quickly with each other and which are able to duplicate themselves in order to increase their throughput. Each component of the system can work in parallel (even the kernel can) in an unlimited number of copies in order to increase the throughput and the security of the platform. During the last testing, we achieved the throughput of 100 000 complete transactions per second. It allows us to stop any server or to add any server at any time.
Coingi will run on servers on different continents simultaneously!
We solved the exchange of data among distant locations, so Coingi will run on several data centers on different continents simultaneously! The system will connect you automatically to the nearest location in order to achieve high speed. The unauthorised disconnections of any location will not threaten the system, the swich between servers will be made immediately. Therefore the system cannot be switched off – the speed and the instant availability is guaranteed worldwide.
Thanks to this extreme performance, COINGI is able to process a huge amount of users‘ commands at the same time, without any problems with completing the transactions. So you can always get real time information about trading and react immediately to supply and demand.
One step further thanks to API
We achieved all above-described advantages thanks to API, that helps the web interface to control the service. Everything is programmed so the website stays stably loaded in browser after the first user’s page view, the website communicates with the service only through API, so we achieve the high speed and minimal server load.
During the fall of 2016, we are planning to launch our new website COINGI, that allows our clients to trade virtual currencies. This service reacts to current needs of the bitcoin scene, our aim is to provide safe, independent and trustworthy virtual currency service, which will fully satisfy the needs of buyers and sellers worldwide.
This service is not an online currency exchange, it is a robust and sophisticated service, that allows its clients to buy and sell virtual currency for USD or EUR. Our intention was to create a fully stable and fast platform for virtual currency trading and first of all, to avoid jeopardizing the service by cyber thieves or hackers and to make the platform independent of national governments.
Modern service with solid foundations
We want the website COINGI to become a globally known synonym for virtual currency trade. During the creation of the service, we learned from the mistakes of other virtual currency platforms. At the beginning of our project, we defined a sophisticated model to eliminate technical, security and political influences and we worked on every detail of COINGI project based on this model.
All in one system
We will not hide the fact that we studied in detail the advantages of competing platforms. Especially some concrete functionalities and methods of maintaining the security of trading. We also added our ideas and specific improvements, that you cannot find on other platforms, to this knowledge. The result of our work is this highly stable and secure online service with a user friendly interface and other improvements, that will be appreciated by buyers and sellers. A lot of them are running in the background, but you can use for example API interface allowing almost 100% control without the use of the web.
The advantages of COINGI
COINGI has a unique security system preventing virtual currency thefts. All virtual currencies are saved in offline wallets, which eliminates the possibility of online theft! The offline wallet regularly releases only the required amount of money used for completing ongoing transactions. Everything is constantly controlled by security precautions, controlling account balances, that must correspond to the real state!
What currency does COINGI offer?
COINGI will mainly focus on bitcoin trading, but it does not neglect other currencies such as litecoin etc. The website will allow you to trade with these currencies very soon: