{"id":10630,"date":"2023-01-25T22:13:13","date_gmt":"2023-01-25T22:13:13","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10630"},"modified":"2023-02-17T12:25:20","modified_gmt":"2023-02-17T12:25:20","slug":"what-is-amp","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-amp","title":{"rendered":"What is AMP?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-amp\/#what_is_its_function\" >What is its function?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-amp\/#contract\" >Contract<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-amp\/#my_review\" >My review<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p><strong>AMP<\/strong>\u00a0is a cryptocurrency developed by\u00a0<strong>Flexa Network<\/strong>\u00a0in collaboration with\u00a0<strong>ConsenSys<\/strong>, a\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-smart-contract\">smart contract<\/a>\u00a0development company on Ethereum..<\/p>\n<p>&nbsp;<\/p>\n<p>Flexa Network is a company focused on\u00a0<strong>online retail payments<\/strong>, especially looking to reduce barriers between fiat money and cryptocurrencies. They had previously launched\u00a0<strong>FlexaCoin<\/strong>\u00a0but it has been depreciated by AMP. With the former currency AMP can be redeemed at a 1:1 ratio.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what_is_its_function\"><\/span>What is its function?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>AMP is designed to serve as a\u00a0<strong>payment collateralization token<\/strong>\u00a0for cryptocurrency payments.<\/p>\n<p>Before explaining what that means, let\u2019s understand what the problem is that gives rise to AMP.<\/p>\n<p>In blockchains payments<strong>\u00a0are not instantaneous<\/strong>, it takes some time before they are included in a block. Even a confirmation (1 block with your transaction) might not be secure enough.<\/p>\n<p>&nbsp;<\/p>\n<p>Let\u2019s take Bitcoin as an example. In Bitcoin blocks take approximately\u00a0<strong>10 minutes<\/strong>\u00a0to be produced. This means that, as a seller, if you receive a\u00a0<strong>transaction<\/strong>\u00a0you\u00a0<strong>will have to wait<\/strong>\u00a0at least 10 minutes. If the transaction has not been confirmed in a block, the buyer could<strong>\u00a0undo it using RBF<\/strong>\u00a0(Replace By Fee). With RBF the transaction is modified by paying more commission (so that miners are incentivized to mine the modified version) and that person could get their money back.<\/p>\n<p>&nbsp;<\/p>\n<p>However, once a transaction is included in a block it is more difficult for double spending to occur because it would involve\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/que-es-un-ataque-del-51-por-cien-de-la-blockchain\">miners maliciously allying themselves<\/a>, which is\u00a0<strong>not at all profitable<\/strong>\u00a0for low value transactions.<\/p>\n<p>&nbsp;<\/p>\n<p>One solution for medium or low denomination transactions is\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-lightning-network\/\">Lightning Network<\/a>, a\u00a0<strong>decentralized payment network<\/strong>\u00a0on Bitcoin. But the AMP paper considers it problematic because of the<strong>\u00a0attacks<\/strong>\u00a0that are currently possible on it, its difficulty in\u00a0<strong>handling final fees<\/strong>\u00a0(closing payment channels) and, therefore, its dubious guarantees of\u00a0<strong>finality on the Bitcoin blockchain<\/strong>. The paper also dismisses\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\">Proof of Stake<\/a>\u00a0(PoS) as sufficiently secure for quick confirmations.<\/p>\n<p>&nbsp;<\/p>\n<p>The solution Flexa proposes with AMP is to use this token as\u00a0<strong>collatera<\/strong>l for\u00a0<strong>unconfirmed transactions<\/strong>. This way the seller\u00a0<strong>instantly receives<\/strong>\u00a0the amount of money (in AMP)\u00a0<strong>and later the money from the original transaction<\/strong>. At that moment\u00a0<strong>the collateral is released<\/strong>\u00a0for use in other payments.<\/p>\n<p>Then, if a payment takes too long or fails for any reason, that guarantee in AMP can be liquidated to cover the funds.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_2027191547\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP1-300x205.jpg 300w\" alt=\"Qu\u00e9 es AMP\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP1.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"contract\"><\/span><strong>Contract<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Both the\u00a0<strong>contract<\/strong>\u00a0and the\u00a0<strong>coin<\/strong>\u00a0are\u00a0<strong>on Ethereum<\/strong>\u00a0(it is an ERC-20 token). Therefore AMP has a\u00a0<strong>fixed supply<\/strong>\u00a0and allows to generate\u00a0<strong>profitability<\/strong>\u00a0(which is technically not staking). Meta staking is used to\u00a0<strong>provide liquidity<\/strong>\u00a0for the Flexa network collateralization system, which uses AMP.<\/p>\n<p>&nbsp;<\/p>\n<p>An important feature of the contract is that there is no \u201cback door\u201d and it operates\u00a0<strong>immutably<\/strong>. In many contracts there are trusted third parties that can alter the contract.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_296207690\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP-300x205.jpg 300w\" alt=\"Qu\u00e9 es AMP\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-AMP.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"my_review\"><\/span><strong>My review<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>One criticism I would have of AMP is that, for one thing, there is no point in seeking\u00a0<strong>absolute security<\/strong>\u00a0for medium or low denomination payments. Lightning Network is\u00a0<strong>progressing rapidly<\/strong>\u00a0and advances like<strong>\u00a0BIP 118<\/strong>\u00a0are going to make it more effective. Also, for most miners to organize to perform a\u00a0<strong>51% attack<\/strong>\u00a0to undo a retail transaction is\u00a0<strong>not at all realistic<\/strong>, and a few Bitcoin confirmations are enough.<\/p>\n<p>&nbsp;<\/p>\n<p>On the other hand, if the concern is that\u00a0<strong>miners could act maliciously<\/strong>, and they consider Proof of Stake insecure, why would they launch their contracts and currency\u00a0<strong>on Ethereum<\/strong>\u00a0that is on its way to PoS? The criticism that miners may be malicious also implies that\u00a0<strong>they may censor<\/strong>\u00a0transactions that would execute\u00a0<strong>the contract<\/strong>, preventing the use of AMP.<\/p>\n<p>&nbsp;<\/p>\n<p>And finally there would be no such thing as finality (irrevocable transaction) because the\u00a0<strong>collateral<\/strong>\u00a0is still on a\u00a0<strong>blockchain subject to 51% attacks<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>AMP\u00a0is a cryptocurrency developed by\u00a0Flexa Network\u00a0in collaboration with\u00a0ConsenSys, a\u00a0smart contract\u00a0development company on Ethereum.. &nbsp; Flexa Network is a company focused on\u00a0online retail payments, especially looking to reduce barriers between fiat money and cryptocurrencies. They had previously launched\u00a0FlexaCoin\u00a0but it has been depreciated by AMP. With the former currency AMP can be redeemed at a 1:1 ratio. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10630"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10630\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7808"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}