CafeCoin’s Unique Proof of Work and Incentive Structure

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CafeCoin’s Unique Proof of Work and Incentive Structure


When it comes to introducing a new cryptocurrency to the public, the groups who work on them should first think up of what they are able to provide to their users. Because if they essentially bring nothing new to the table, their cryptocurrency wouldn’t find the success they want, and might possibly even fail altogether. Groups that wish to create new cryptos need to acknowledge that there is already a surplus of altcoins out there, and a vast number of them do the exact same thing. Yes, they have users, but they are usually being used to exchange Bitcoin in the end.  That’s why CafeCoin’s unique proof of work and incentive structure will change everything for its users.

Read More: CafeCoin: Consumer and Merchant Benefits in the Blockchain Architecture

Breaking into the cryptocurrency industry, your coin needs to have something others don’t. You need to analyze what is lacking in the cryptocurrency industry and find ways to supply that. And that is exactly what The CafeCoin Foundation did. They studied why cryptocurrency has yet to achieve any significant wide-scale adoption. After they were able to identify these factors, The Foundation then spared no resource as they came up with ways to address them. They made sure to utilize everything available in order to create the ideal utility token.


What Benefits Does CafeCoin Offer Users?

Another thing that up-and-coming cryptocoins need to acknowledge is the need for a rewards system for the people to validate transactions on their network. These users are the ones who solve complicated algorithms in order to append the information on the blockchain, and then facilitate the consensus that is needed in order to settle transactions. Most other cryptos simply reward them by giving them a certain amount of their coin. This does provide adequate rewards for validating transactions, but that’s it. CafeCoin made sure to implement an innovative rewards mechanism so all of its users will be incentivized to help in the validation activity, even those who don’t know a lot about the technology that goes into crypto.


Traditional proof of work systems, also known as mining, has been utilized to great effect by even the most successful of cryptocurrency projects, namely Ethereum and even Bitcoin. They provide a lot of uses to the cryptocurrency’s system as a whole, but these are their main duties.

Read More: Key Benefits of CafeCoin’s Structure to Both Merchants and Consumers


The blockchain facilitates one of, if not the main, features that cryptocurrency gives users, which is decentralization. This means users no longer need to rely on or trust a centralized, singular entity or authority to validate transactions. The problem with institutions with a centralized authority is that they have complete control over the finances you entrust to them.

This makes it easier for those malicious actors to get into your currency. But with cryptocurrency, you don’t entrust the duty of validation to a single entity, but to all the users on the network. It requires a consensus before a transaction goes through, which amplifies the security multiple times, to the point that it’s more trouble than it’s worth to even attempt getting into a cryptocurrency and gain control.


CafeCoin’s Unique Payment Process and Intuitive Mobile App


As mentioned above, proof of work systems are the ones that do the validation process on the cryptocurrency network. Any time a transaction occurs between two users of the same cryptocurrency, it will be sent for validation to the miners, and the miners will use their powerful hardware to perform the necessary computations in order to record all the necessary information on the blockchain. Once this is done, the transaction will be settled, and the new figures will reflect on the users’ wallets.


This system provides incentives to those who are willing to participate in the validation activity. In most cryptos, groups have even formed called mining pools, where large groups combine their computing power to mine for a certain coin, and they also split the rewards amongst themselves. Although this is quite beneficial for them, other miners who go solo will have a harder time, as the more processes your hardware is able to perform at the same time, the faster you are able to get new coins.

Read More: CafeCoin’s Solution to Today’s Cryptocurrency Industry


This system also allows for a fairly stabilized disbursement of new coins into the economy. This provides a bit of control to the cryptocurrency, but it still does little to stop the volatility that plagues many cryptos available on the market today.

The Foundation innovated a new proof of work system in order to address the prevalent issues of cost and speed regarding transaction validation. This new system incentivizes many users to help in validating these transactions, but it also discourages large entities, i.e. mining pools, from monopolizing the network’s computing power. CafeCoin’s accompanying mobile application is proposed to have the ability to mine for CafeCoin for those smartphones that have the necessary power to do the validation activity. This will allow users to be validators in their own network, so they are able to own their own Cafe.

Cafe is the reward miners will receive whenever they finish validating transactions. It is different from CafeCoin and cannot be converted to CafeCoin either. The only purpose of Cafe is to pay for the transaction fees. In this way, users are incentivized to help in validating transactions so they are able to lessen, or even virtually eliminate, their transaction fees. The CafeCoin mobile app would also be able to run the CafeCoin Hash algorithm, also known as CafeHash. This will also be made available for tablets and personal computers. For now, the CafeHash protocol is modeled to be a variant of the Equihash proof of work paradigm, the difference being the CafeHash protocol requires a smaller memory footprint, but in turn will have more operations.


Important Features, Benefits CafeCoin Users Look Forward To

The ability to mine will be restricted to devices that are registered and linked to a CafeCoin account. The only information about the device that will be stored on the system is a unique fingerprint used to associate the device to the account. Users will have the ability to link several devices to a single account, but it should be noted that mining pools are strictly prohibited from participating. When a transaction is sent for validation, they are assembled into new blocks. These will be formally codified into a block based on the data volume, or time, whichever threshold is exceeded first.

The difficulty of each block is set in a way that makes it easy for the network to validate these transactions, which guarantees quick settlement. The first participant that is able to confirm a transaction will then be rewarded a certain amount of Cafe. With this system, users have the ability to generate their own Cafe, and virtually eliminate transaction fees. They only need to invest their time and effort in validating other people’s transactions, and because of CafeHash’s unique properties, all users of CafeCoin are incentivized to participate in the validation activity, but large groups or entities won’t be able to gain any significant advantage over generated Cafe or CafeCoin.

Read More: Important Features, Benefits CafeCoin Users Look Forward To 

The Foundation will study the optimal balance between the transaction costs and the computational complexity of the validation versus the hardware’s ability to compute the implementations of the CafeHash organisms. As this is being studied and tested, more details will be released, which can be found on their website at

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