Blockchain is a decentralized network for storing and processing data. The operation of these systems is supported by its participants ( nodes, nodes, validators). Part of the network is powered by paramizers. Their task is to store digital assets on a wallet. For this, they receive remuneration from the blockchain. It is also possible to increase profitability by inviting new participants. Interest rates for storing digital coins depend on the specific system. Let’s analyze what there are cryptocurrencies with paramining and how much you can earn in 2023. Only 2 projects are profitable, and the coins of other similar platforms have depreciated.
What is paramining
The term first appeared in 2017, and Alexei Muratov introduced it. He is the founder of the Prizm project – a decentralized system with a network marketing mechanism (MLM). Participants store PZM cryptocurrency on a wallet and receive additional coins every day. The interest rate in this blockchain project depends on the number of invested assets. Investors can increase the yield by inviting new clients into it.
Such a system makes it possible to keep it running. It also gives participants an incentive to keep the koins on their wallets during the rate decrease. Most people prefer not to sell cryptocurrency to receive additional koins as a reward from the network, which covers losses.
The system of paramining prisms is not controlled by the project management. All transactions are performed automatically by smart contracts.
Principle of operation
On the example of Prizm, let’s understand what paramining cryptocurrency is in simple words. The principle of its work is built on network marketing. The founder of the blockchain project calls it MLM 2.0. The system is decentralized and works autonomously. To participate in it, you need to create a wallet, and then buy PZM coins. For their storage, the user receives remuneration. Interest rates are in the table below.
| Number of frozen coins, PZM | Daily reward |
|---|---|
Paraminer is able to simply hold coins and get a stable profit. But the amount of reward can be increased by inviting new users. The depth of referrals is 88 levels (in Prizm). To build the structure, you need to send any number of coins (0.01 is enough) to the invited user. A record will appear in the blockchain that he is a referral. The size of the reward multiplier depends on the total number of frozen assets of the followers.
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| PZM Numbers | Multiplier |
|---|---|
What are the cryptocurrencies with paramining?
As of April 21, 2022, there are 8246 digital assets on the market (according to editorial data). Projects that offer paramining to customers are few. There are 2 active ones left:
In April 2022, the Prizm blockchain project was on the verge of extinction. The price of the coin had fallen 275 times since its inception (current value is $0.003). But the development team writes it off to temporary difficulties. It states that soon the cryptocurrency’s rate will begin to grow.
The principle of operation of the TOR Corporation platform is similar. However, the interest rate for storing digital assets is lower – it starts from 0.04% per day. If the user freezes from 500 thousand to 1 million coins in the wallet, he receives 0.16% per day. The referral program has 88 levels in depth. The size of multipliers of rewards for inviting new clients – as in Prizm.
Previously, there were other blockchain startups with paramining capabilities. However, most of these platforms have ceased operations – their coins have depreciated in value.
One such bankrupt project is Ouroboros. It was launched in 2019, and it was popular among paramailers until it was shut down.
Possible risks when investing
Reviews about paramining on the internet vary. A lot of people do not trust such blockchain projects, while others, on the contrary, praise them. Users have the following claims to Prizm:
- Cryptocurrency is not purchased to buy goods and services. The developers claimed that PZM can be used as a means of payment. Previously, there were 4 stores accepting this digital asset. However, as of April 2022, they are all closed.
- Roadmap (project development plan). It was first published during the emergence of Prizm. It outlines the plan for 2016, 2017 and 2037. A lot of people considered it strange.
- The founder of the blockchain project is a former criminal. In 2013, Alexei Muratov was sentenced to imprisonment for creating a financial pyramid scheme in India. He defrauded 100,000 citizens for the sum of $2.6 million.
As of April 2022, the rate of the PZM coin has almost depreciated. But the representatives of the platform consider this fall as speculation of large holders of cryptocurrency. Participants of the blockchain project are assured of the need to wait and buy coins. An article was posted about this on the company’s website.
Summary
Paramining is a way of earning money, which appeared in 2017 thanks to the Prizm project. It was founded by Alexei Muratov, a man who was previously convicted for creating a financial pyramid scheme in India. Then the system of paramining was used by other projects (TOR Corporation, RBCoin, Ouroboros, Diplexcoin). However, most of them were shut down in April 2022 and the remaining ones were almost devalued.
A lot of people consider these projects as financial scams. Therefore, you should invest money in them with caution, agreeing with high risks. But it is better to choose other ways to earn money on cryptocurrencies.
Frequently Asked Questions
📲 What types of earnings are there in the digital asset market?
💳 Are cryptoassets used as a means of payment?
As of April 2022, the use of digital currencies to pay for goods is prohibited in Russia. However, in some countries it is allowed (USA, Japan, Belarus and others).
❓ What will happen to the Prizm blockchain project?
It’s hard to predict for sure, but many believe that PZM crypto-assets will depreciate.
🧐 What is a smart contract?
They are blockchain programs that perform specified actions when specific conditions are met.
💡 What is the minimum threshold for entry into Prizm?
It is enough to buy and transfer 1 koin to your wallet. The interest rate will be 0.12% per day.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.
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