When you read about most new cryptocurrencies and ICOs, you see phrases like “a fork of” or “an ERC20 token”. These new currencies tweak a feature or two from an existing currency to solve a known problem or target a certain niche but they stick to the same script and way of doing things as every other currency and coin out there.
Jewelz is not one of those currencies.
Jewelz is working to return to the defining principles of blockchains and cryptocurrencies.
Jewelz is working to return to the defining principles of blockchains and cryptocurrencies. Bitcoin, the original cryptocurrency, was founded on the principles of decentralization and moving control of currency from the hands of the few into the hands of the many. However, about 40% of Bitcoin is owned by less than 1,000  of an estimated 20 million Bitcoin users . Further, the top three Bitcoin mining pools (BTC.com, AntPool, and ViaBTC) control over half of the processing power of the Bitcoin network . While Bitcoin is many things, it certainly is not a currency removed from the control of a privileged few.
Jewelz is designed as a cryptocurrency that anyone can mine. Its novel serial proof of work algorithm and limitation of miners to a single mining address are designed to prevent the average miner from being squeezed out by giants with deep enough pockets to build specialized mining farms. In this article, we’ll describe the features that make Jewelz an unique cryptocurrency that is true to the ideals of blockchain and aims to create a positive, real-world impact.
Inside Jewelz: How it Works
Most existing cryptocurrencies are designed to be mined by parallel processors. This has led to an artificial inflation of the retail price of top-of-the-line GPUs developed by Nvidia and AMD and the creation of specialized ASICs designed for mining certain cryptocurrencies. These developments, which disproportionately favor miners with the ability to invest in specialized equipment, contribute to the growing stratification of the cryptocurrency market.
Some cryptocurrencies, like Monero, have been designed to use memory-intensive operations that cannot be performed on an ASIC, making mining on a standard computer still possible. This has led to Monero being a prime target of cryptomining or cryptojacking malware, which uses infected machines or the browsers of visitors to websites with embedded mining scripts to mine cryptocurrency for malicious actors or the owners of the website. Cryptojacking can be extremely lucrative for hackers (with estimated yearly earnings of around $100 million USD for hackers controlling large botnets ) and goes against the defining principles of cryptocurrency.
Serial Proof of Work Algorithm
Jewelz uses a serial proof of work algorithm to protect the average miner from being squeezed out of the market by miners who invest in large-scale mining operations using ASICs and top-of-the-line GPUs. Rather than allowing miners to randomly select nonces to test in the proof of work algorithm, Jewelz uses a deterministic nonce generation algorithm. This ensures that mining operations are performed in a serial manner, allowing miners to allocate a single CPU thread to mining while remaining competitive in the mining environment.
Jewelz’s deterministic nonce generation algorithm begins by using the miner’s public key as the initial nonce. If this miner is a subminer in a pool, the public key is the concatenation of the public key of the mining pool and the subminer’s public key. This initial nonce is hashed using the SHA256 algorithm and compared to the target. If the target is met, the block is valid and added to the blockchain. Otherwise, the result is used as the nonce in the next block and the process is repeated until a value that meets the target is found.
Enforced Miner Public Key Limitation
Interaction with the Jewelz blockchain is performed through applications designed to mine for the blockchain. The first app designed for the blockchain is AllMine, a strategic puzzle game where users collect eggs to hatch Adoraboos. In the background, the game mines Jewelz, incentivizing users for good gameplay. In the future, educational modules will be integrated into the game to educate parents and children about cryptocurrency as they play together.
Jewelz is designed to limit miners to a small number of public keys to prevent parallelized mining. Public key limitations are enforced via the App Store from which the game is downloaded.
Players can make a one-time In-App Purchase of a public key that allows them to mine and earn Jewelz while playing the game. Jewelz can be used for in-game purchases or exchanged for other currencies (crypto or fiat).
Decentralized Block Validation
In the spirit of blockchain, Jewelz allows miners to take a “trust but verify” approach to acceptance of blocks added to the blockchain. Embedded in each block is an outline of the work performed by the miner to create the given, valid block. The hash chain created by the miner is broken up into chunks of hashes. Within each successful block, the final result of each chunk of hashes is recorded. This allows anyone to independently verify the validity of any chunk of the chain of hashes by starting with the result of the previous chunk, performing SHA256 hashes, and comparing the result to the recorded output of the chunk. An arbitrary level of confidence can be achieved by randomly selecting a subset of the chunks in a chain to test and testing can easily be parallelized or parceled out to subminers.