Pakcoin Local Banking Redefined

Pakcoin

Interviewing the first vision of Pakcoin was where NewsBTC Pakistan came into existence. Pakcoin is a bitcoin like currency that is forked from litecoin source, hence its based on scrypt algorithm. The idea presented at the time was that there was transparency required in the current money printing/distribution system by the Central Bank.  Printing of money usually causes elevation of poverty. The developer behind pakcoin known as Abu Shaheer envisions replacing the current mobile banking sector with a decentralised blockchain scrypt based protocol under pakcoin. Currently 4% of Pakistanis have mobile banking access according to recent survey by State Bank of Pakistan. This means most of the transactions take place peer to peer via cash or via mobile banking type shops such as easypaisa, mobicash, upaisa or ubl omni and done CNIC to CNIC. These shops are expensive to use as the charges on transfers are quite high. The system currently in place is an outdated system and is often a problem for networks being down. The blockchain is redefining fintech and Pakistan should not be left behind. While pakcoin still has a long way to go they have accomplished alot since it came into being.

Going from having close to 0 (in August 2015) value per 1 pak it is now at = Rs. 0.5+ (as of this writing) and rising on a daily basis(latest rates can be checked at  http://pakcoin.info/). The network is still very small and not lots of mining going on. However with due time the network should become more secure. The few features introduced recently to bring acceptance to this in Pakistan, is the start of pakcoin tellers (think of these as easypaisa shops where you can buy or sell pakcoins easily for cash). While the idea of pakcoin is local we have seen expats throughout different countries become offering this service, this can inturn target remittance market where people can buy aboard and send them to their loved ones directly over the pakcoin blockhain. The system has a map and anyone can become a teller by simply listing themselves on the global map. The coins can be attained, bought or sold via btc or bitcoin also at exchanges such as novaexchangecrypotpia and yobit(Warning:Do not trade at yobit until wallets are updated). Additionally the coin now offers an online wallet system, mobile wallet (android smartphone) through uberpay wallet app in Google Play Store, a mobile topup service was also recently introduced so you can now use your pakcoins to do mobile topups within Pakistan. Adding these services has also seen pakcoin acceptance increase through Pakistanis, as they can buy or sell them through the exchanges, above mentioned tellers or even through pakcoins own website with jazz cash (formally mobicash).

For pakcoin to grow in Pakistan it is very important for people to understand that it is not just scheme but a truly decentralised way of doing payments or transferring funds which is backed by opensource and supported by dedicated developer who is working hard to bring features built to increase feasibility over time. It can be viewed as a technology that will help shape the future of banking at a local level over blockchain. To general public who are just getting in bitcoin, it is imperative to understand that what bitcoin did for cross board payments, pakcoin is trying to do to local micro finance banks.

Pakcoin is very active on social channels at Facebook  and twitter


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The world of bitcoin has often be subject to links to the underground world. The heart of this has been the SilkRoad saga. While bitcoin had been used on the blackmarkets such as now defunct silkroad, a bigger bigger menace to the reputation has been scams in the crypto community dragging it down.

Multi Level Marketing / Pyramid Schemes:

Mostly these schemes are seen as dubious and sooner or later either they scam or only the higher ups make money while rest of the investors end up losing. This has been a growing trend in the crypto community with targets being 3rd world countries especially the South Asia. We really have to understand bitcoin to realize its potential. Getting into details of if other cryptos that I will mention here are scams or not are totally upto the readers. What I believe is that we must really understand what bitcoin has presented to understand what these other coins offer.

What is money (fiat) as the fintech or crypto community now refers to it:

Its very important right now to understand how fiat works and the current banking system works. I would highly recommend watching the movie Bitcoin: The End Of Money. It gives more insight on how the current banking system and money system works. To summarize it here it for us to understand that the current fiat system works on loans and interest. Money is printed as per requirement of the state,(Pakistan or any other) by central banks against re payments by the govt to banks or bonds owners from the taxes recovered in the future. Once the government is unable to make repayments they simply print more money or fiat. This inturn devalues the currency of that country. The current system is all based on dollars which only the FED can print at its free will and loan out to countries through IMF, Worldbank etc. The reason I wanted to cover this is so that you may understand the the technical details and concept of bitcoin.

Open Source Software:

What we need to understand here is that opensource software simply means that the software is openly available, the code is modifiable and usable for your own use. A few example are linux, open office, liber office and our main topic of interest bitcoin, litecoin, dash etc. To the general public what this means it that the code is read by millions daily and they can easily detected if there are some fishy things going on. Coins such as Ripple (which are trying to replace the current swift system used by banks), leocoin and one coin come under closed source as their code is not available by general public to read and verify that nothing wrong is being done or nothing extra is being mined in this case at will by the owners of the coin.

How Bitcoin Works:

Saying the onecoin or leocoin or xrp is a scam is just jumping to conclusions. Every closed source coin is not a bad coin but thats just my opinion. However we must realize that bitcoin was created as a software that would be open to all, decentralized (meaning no individual or entity can control it. The problem with onecoin and leocoin is that they make it difficult for you to trade unless you become a member by buying from them first. Then there is no way to actually check how many coins were pre mined and if they are changing the code to mine blocks with extra coins hence making mining unfair. This is why these coins get flak. They also work on principle of MLM where you have to buy and sell to others and make a network. Bitcoin is not without problems but to say that onecoin and leocoin or even gcc ( as shown in their video the bitcoin dream) will rise and takeover bitcoin eventually is like selling dreams. The acceptance of bitcoin is in decentralization and verification not just that it was the first. It cannot be changed unless consensus is reached on new code, where as other coins as mentioned above are in control of the creator. Getting into the details that the owners of these coins are also linked to running pyramid schemes before and have been bared by SECP in Pakistan have been covered one too many times.

Why I would not invest:

I personally would not invest in these coins as they make it difficult for you to start trading since you don’t become a member first. Then there is the issue of unverifiable code, which is added to the fact that its closed source and in control of the company who actually wrote the code.

 

Update:

I was just informed that leocoin while being mlm coin is an opensource coin run on scrypt-jane algorithm. While this coin has been per-mined to sell to its users. I havent checked its block explorer. But wanted this to be updated so that people know about it.