Gnosis is a platform for a cryptocurrency (GNO), released in 2017. It was developed by Stefan George and Martin Koeppelmann. Their plan was to create a cryptocurrency for virtual market forecasting. This helps users trade in virtual securities. The cryptocurrency of this platform is the Gnosis Token (GNO). It is based on the Ethereum protocol. This is an advantage because Ethereum enables the use of smart contracts and is one of the more prominent players in the cryptocurrency space.
What is it?
The Gnosis Platform comprises three layers which are the Application Layer, the Gnosis Services Layer, and the Genesis Core. Out of these, the Gnosis Core layer does not attract any fees. It is to be used to provide the smart contracts that act as the foundation layer. It is intended to be thus to fulfil the idea that the creation of new markets should approach near zero marginal costs. The next layer, the Gnosis Services Layer is intended to provide services in addition to what the Gnosis Core will offer. The final layer will have a number of prediction market applications. The tokens of the platform will be used in conducting the day-to-day transactions. Token holding might even be an integral and core component of the business model of the prediction market applications that will be making use of the Gnosis Applications layer.
The Gnosis Token or GNO is the cryptocurrency of the Gnosis platform along with another currency, the WIZ Token (Gnosis Wisdom). The total number of GNO is capped at ten million. It is a currency that focused only on open forecasting markets. The GNO Token can be used to generate WIZ Tokens. These WIZ Tokens are the tokens that are used on the Gnosis network to pay the fees for making use of the platform. The WIZ Tokens can also be used speculate on events. In addition, WIZ Token users can create and participate in markets.
Where to buy?
The most common method to acquire Gnosis Tokens is to use a credit or debit card to buy cryptocurrency like Bitcoin or Ether and then exchange those for the Gnosis Token. Sites like Changelly, Indacoin, and Bittrex help in the process of converting one type of cryptocurrency to another. The exchange rate will change each day and is subject to market fluctuations.
Gnosis developed its own wallet, which is a multisig wallet. This means that the wallet requires multiple signatures. The purpose of having this is to increase security. There are multiple parties in a given transaction. The multisig wallet requires them all to agree before a transaction can be processed. The wallet makes use of smart contracts in order to ensure that the multisig function is enabled. Owing to the level of security provided by the Gnosis wallet, it has become a standard for the industry with regard to secure funds management and has been adopted by Golem, Aragon, and Civic among other cryptocurrencies. Additionally, GNO Tokens can be held in almost any Ethereum-compatible wallet.
The Gnosis Token was first released in an Initial Coin Offering (ICO). This was the only way to buy these coins at that point in time. It is not clear if it will be possible to mine the Token. The WIZ Token cannot be mined. It is gained only by holding the Gnosis Token in a wallet.
As of the third week of April 2018, the price of one GNO Token was about $108 (USD). The historical price trend for this token is presented in a table:
Risks associated with GNO Tokens
From the historical price trends, it can be concluded that the prices of the GNO Token have daily fluctuations that seem to follow no set pattern. In addition, the shift in the daily prices, in terms of percentages seems to be very high. The percentages have been very high at times. Thus, it can be seen that there is an extreme volatility in the prices. Therefore, it is probably not a good investment option for investors looking to invest their money safely for a long term. It is strongly recommended that investors take a look at mutual funds which would offer a better or equal rate of return. This is in light of the fact that a number of governments are prohibiting the use of cryptocurrencies or are banning virtual currencies altogether.
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