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Peercoin has also been referred to as the Peer to Peer (PPC) currency. During its launch, it captured the attention of cryptocurrency enthusiasts. Although many others have been bifurcated by Bitcoin, they tried not to inherit all the shortcomings of Bitcoins that included only reliance on a Proof of Work (PoW) algorithm.
The Proof of Work algorithm
It has been seen as a major obstacle to scalability. Furthermore, the
The algorithm also requires enormous computational powers when confirming the transactions
on the platform.
The developers of the currency, Sunny King, who is believed to be a pseudonym, and Scott Nadal, have introduced a second consent algorithm, Proof of Stake, not only to direct the intensity of the computing power of the PoW but also to increase the efficiency of Peercoin.
So, how do the two algorithms
fits perfectly to the platform?
According to his website:
Peercoin is the first hybrid blockchain: it uses proof-of-stake to provide network security and proof-of-work for the distribution of new coins.
The Proof of Work algorithm manages the mining process but, with increasing the difficulty of mining, the platform accepts the Proof of Stake algorithm to detect the addition of new blocks in a process known as minting. Furthermore, the second algorithm is responsible for protecting the platform against a 51% attack.
This type of attack occurs when a single entity has more
50 percent for power control on the platform. When this happens, the
the entity is able to reverse transactions allowing them to spend the same currency
more than once.
With Peercoin using the same
function of hash used by Bitcoin and having the same algorithm PoW, the
the premiums that miners get for the addition of new blocks continues to decrease over time.
The PoS algorithm rewards
those that hold 1% of the PoS coin blocks. But, to qualify for this award
your coins must be kept for thirty days. The PoS algorithm, unlike the PoW algorithm, is not based on computational power
for what determines whether one is entitled to coinage is the quantity of
Peercoins that you hold in your wallet.
To avoid the monopoly that a
the picket system can introduce, the Peercoin blockchain only considers the coins
depending on age. As we pointed out above, coins can be minted
must have been in the wallet for 30 days. What about the maximum age of these
coins?
The PoS appearance of Peercoin
caps of the platform the maximum age of coins that can benefit from the coinage to ninety days. Such as
the number of times you participate in the coinage process increases, you earn
Additional peercoins.
Main differences with Bitcoin
In addition to the use of two consents
algorithms on the same platform, Peercoin has other differentiation characteristics,
For example, Bitcoin has a
hard cap of 21 million coins that will ever beautify the face of the earth. This
means that after the 21 million Bitcoins have been extracted, all Bitcoins will do it
already in circulation. Peercoin, on the other hand, does not have a tough one
limit the number of coins to be extracted. Instead, the number of Peercoin
in circulation will be inflated each year at a rate of 1%.
Furthermore, the block confirmation time for Peercoin is lower than the Bitcoin platform. In addition, the transaction fees on the Peercoin blockchain are lower than those of the Bitcoin platform.
Peercoin Trading
When it comes to buying and selling Peercoin, your favorite cryptocurrency change may not have listed the currency yet. But the main exchanges that support the Peercoin trade include Poloniex, YoBit, Cryptopia, CoinEgg, WEX and HitBTC. In this exchange, Peercoin is quoted against other criptos, which means that it can not be purchased directly using the fiat. At the time of writing, Peercoin traded hands at $ 0,602 and had a market capitalization of $ 15,143,564 according to coinmarketcap. The coin occupies position 168 on coinmarketcap.
Conclusion
From our discussion above,
it is clear that Peercoin is among the best in terms of safety. Moreover
it was the first blockchain project to use the Proof of Stake algorithm.
Unfortunately, the currency is not
popular like other altcoins out there. Furthermore, its price appreciation curve is
not as steep as with Bitcoin and other altcoins since its inception.
However, being among the first cryptos after Bitcoin, it has shown recovery capacity that could be a good choice to include in your wallet.
