What is peercoin?
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What is Peercoin?
Peercoin (PPC) is a peer-to-peer cryptocurrency that makes use of both the proof-of-work and proof-of-stake systems. It does not bank on mining powerhouse to generate coins; the more you hold, the more important your verification for the network is. This can be verified by peercoin users.
It is based on the blockchain technology to provide easy access to recorded transactions. Peercoin uses a feature known as checkpointing. Its aim is to make future upgrades of Peercoin protocol go smoothly and safeguard the network from double-spending attacks. Through the peerbox service, an option to own a full peercoin node is available.
Its main goal is to reduce the high amounts of electrical energy powering the Bitcoin network. This coin is based on a paper written in August 2012 listing Scott Nadal and Sunny King. It is unique from every other cryptocurrency due to the fact that it is designed to be energy sufficient.
It does not consume large amounts of electricity through the mining process. Another outstanding feature is the proof-of-work and the proof-of-stake techniques it possesses.The proof-of-stake technique is designed to protect monopoly forces within holding and production and also helps peercoin to grow and be stable in the future. It was designed to help solve some of the biggest challenges of Bitcoin.
Interesting features of peercoin
Peercoin was designed to experience a 1% rate of inflation every year, resulting in an unlimited number of coins. This is as a result of the dual effect of the difficulty involved in the scaling of mining and the minting process involved in proof of stake. Technically, peercoin cap is rated at 2 billion coins and majorly used for checking consistency and for future projections, the cap may not be reached, and even when it is, it could be raised easily.
This can be described as a simple blockchain protocol that functions in helping peers issue and make transactions via assets. These assets can be used in representing any type of assets, including equity and bonds. It also helps in the creation and location of DACs and DAOs on the blockchain. Features such as Shareholder voting and dividend functionality makes it complete.
The proof-of-stake in peercoin was created to tackle the high energy consumption issue of Bitcoin. The proof of stake system makes use of very little energy in generating its coins; the only energy required is for the running of the software on a computer.
Peercoin was developed to give preference to transaction fees defined by protocol and get rid of transaction fees that are optional.
Peer4commit is a platform where funds are raised for projects of any kind. Anyone can collect funds just with a few clicks; you just need to give an explanation of why people should trust you and what you intend to do with the funds. This platform collects funds and distributes payments to those who actually work on the project.
It gives initiatives to people and not just those who successfully achieve projects. It also provides tools which give that aids easy money distribution. They can send the needed funds to an email address as well as GitHub users.
Peercoin also makes provision for tools that help in checking the fundraiser, keeping track of projects managed and funds distributed.
The Peerbox was created to solve issues regarding security and privacy with the aid of cryptocurrencies. The quality and security of peercoin are usually taken for granted because it has not been given enough testing.
Its main goal is to make provision for maximum security for both minting and running nodes. This security is enforced by the underlying OS and will be hardened to fight against most attack vectors.
Its secondary goal is to make provision of a plug and play platform which helps in running peercoin nodes o aid safe minting as well as running wallet software.
It delivers the same experience on major platforms focusing on a cheap and energy efficient device compatible with the general view of peercoin.
To make transactions with PeerAssets such as Indicium, peercoin needs to pay a fee which results in an increased demand for peercoin. By burning the fee, Indicium helps in fighting the inflation of supply.
It also functions as a showcase for PeerAssets protocol, and if successful, a lot more people will love to make use of this platform later in the future which helps in building things on top of peercoin. As a result, more value will be added to the network by taking roles to host blockchains for services and products initiated by people and companies at large.
PeerAssets work by writing and reading of messages on the blockchain. These messages represent the assets while addresses are the pairs. PeerAsset protocol can be used in representing any type of assets such as equity or bonds.
PeerAssets also represent objects in real life. By so doing, their existence is confirmed on the blockchain. It is also a light protocol that makes use of no extra layers; neither does it need external value tokens.
They do not participate in the maintenance of the public ledger but makes use of its trustworthiness and stability. They also do not require either the soft or hard forks of the host network but requires the development of PeerAssets aware client.
What is minting?
The major features differentiating peercoin from other cryptocurrencies are proof-of-stake and minting. Peercoin’s proof of stake is equivalent to Bitcoin’s proof-of-work. Instead of using large amounts of energy supply to secure the network, its security is hinged on “coin age”. This coin age is derived by the multiplication of the “age” of the coins (which is the amount of time since last transacted) by the actual number of coins. There is no need for a wasteful, expensive and dedicated hardware like with Bitcoin.
Peercoin gives a reward (approximately 1% every year) to people that mint for giving their part in securing the network.
Most importantly, Peercoin currently makes use of proof of work but has no hand in securing the network which is only feasible via the proof of stake. During the early stages of every coin, the proof of Work is only used for distribution purposes, which will likely be reduced in future to a negligible amount. The purpose of the distribution is to allow for a fairer and wider coin dispersal made possible by either an IPO or the initial mining phase. The number of coins owned is highly considered when minting the wide distribution is important for the viability and security of proof of stake currency.
The major reason behind minting, therefore, is to make contributions to the network security and as a result, you are protecting your own investment.
Cryptocurrency mining makes use of specialized hardware while the minting process involved in peercoin can be processed on any computer. The minting process, which is based on the amount of peercoins you hold, makes it more energy-efficient compared to mining conventionally.
Peercoin makes use of the same mining algorithm used by Bitcoin (SHA-256). Any hardware compatible with the mining process of the Bitcoin network can also be utilized when mining Peercoins. As growth in the computing power of the network increases there’s a gradual decline in the reward for block mining.
Mining peercoins with the aid of GPU is more effective than doing it with your CPU, but still, it is not good enough.
For peercoin, Proof of work and Proof of stake blocks are independent. Just like making a bet with electricity consumed and CPU time versus the Proof of work’s block reward. In the proof of stake blocks, you will be betting the amount of PPC owned multiplied by the number of days they’ve been idle in your wallet (maximum of 90 days and a minimum of 30 days). If your bet is successful, there is a 1% earned interest coupled with losing your coin age, thereby making your coins look like you just received them.You’ll then have to wait another 30 days to be paid another interest.
Since codes for proof of work and proof of stake are independent of each other, some bugs are finding their way into the network. There is also a vulnerability that helps users generate a lot of free PoS raffle tickets. This has been solved though with the aid of Sunny King.
Peercoin (PPC) is a peer to peer altcoin that utilizes both the proof-of-work and proof-of-stake mechanism. It has the parameters to take the backbone of the lot. It is not a flash in the pan but in for a long game.
Its PoS difficulty has been increasing at a very high rate, which indicates more people holding PPC and once this happens, its price shoots up. It can be up to 1000% or more in one day.
Peercoin’s ecosystem plays a very big role in both its price cap and market cap. We can see that peercoin’s current price is accurate when compared with its current ecosystem.Peercoin’s blockchain age is its major feature that cannot be duplicated.
It is less susceptible to 51% attack. Peercoin is usually kept in an encrypted wallet and unlocked when minting is needed, this gives greater security to the network and helps increase the chance of developing a new block. Due to lower requirements for power, it has great potential for long-term sustainability. This is its most prominent advantage.It also has the lowest transaction costs compared to other cryptocurrencies.
Why Peercoin got a boost from Bitcoin halving?
Miners turn electricity into Bitcoin with the hope of generating profit when there is a lesser cost in producing digital currency than that spent on power. When they can’t achieve this, miners have two options open to them: They could start mining another type of cryptocurrency or just abandon their equipment.
Due to the recent Bitcoin halving, some miners are unable to mine bitcoins professionally. However, instead of shutting down their machinery and efforts, an idea was brought forward to start mining peercoin. There were some reasons why it was chosen instead of other coins. Peercoin just like Bitcoin utilizes a similar hash function. It also sees $100,000 volume each day which also suites this need.
Peercoin’s approach to mining created a new economic edge for the miners. As a hybrid cryptocurrency, it utilizes both the proof-of-work and proof-of-stake processes, unlike Bitcoin that utilizes just the proof-of-work process to secure the network.
Transactions are verified on the network in a PoS model, by those who own peercoins. Your verification is more important for the network, if only you hold more peercoin; this makes users save rather than spend their peercoins.
In contrast to Bitcoin which has a release schedule easily predicted, peercoin is seen as more fluid and releases its coins at rates dependent on network’s difficulty- the harder it is to mine, the lesser reward the network offers.
Peercoin price growth
The first digital currency to utilize the poof of stake consensus system in 2012 was peercoin. Presently, the value of peercoin reached $0.477882 (22.49%) or 0.00037581 BTC (20.82%), its market cap also reached $10 Million recently. It gives its users 1% annual PPC return when minting.
Recently, peercoin started trading at 0.00023469 BTC; this indicates that to reach Bitcoin’s current price of $15000 USD, it needs to grow by 426,094%. In order for peercoin to reach $5.00, there is the need for it to increase in price by a factor of 2.64x.
The transaction fee is fixed at the protocol level and instead of going to the miners, it is destroyed. Based on forecasts, if peercoin is bought for 100 dollars today, a total of 54.866 PPC will be gotten. A long-term increase is expected based on predictions. Since peercoin inception, it has appreciated by $1.494832, and there has been a change of 486.30%. The market cap of peercoin is $45,175,443 USD (5,700 BTC). It was originally designed to theoretically experience a 1% steady inflation per year which yields an unlimited number of coins.
This helps in storing the private keys needed to access a peercoin address and spend funds. They are in different forms, which are created for different types of device. It is necessary to back up and secure your peercoin. There are different types which include, age light wallet, desktop wallet, application wallet, official wallet, online wallet (cryptonator), paper wallet etc. Some of them are explained below:
Papercointalk (paper wallet)
This is an offline wallet; it is printed onto a piece of paper for safekeeping. If the access to your peercoins needs to be limited and stored for a long period of time, you can use paper wallet.
Official wallet (peercoin)
This is the official peercoin wallet that is mostly recommended for utilization, it is an offline wallet for peercoin.
Online wallet with Exchange (Cryptonator)
Coins can be bought or sold with this online exchange site. It is a multicurrency wallet that supports other cryptocurrencies such as Bitcoin, Litecoin, Dash, Ethereum, ripple, Zcash, Blackcoin, Primecoin, and Monero. It is a good wallet but it can be hacked because it is online. It ensures transactions are easy and fast, it also allows immediate exchange between different cryptocurrencies in one personal account.
There are procedures in buying peercoin; this involves purchasing a well-known cryptocurrency like Bitcoin. Once this is done, use an exchange to trade it for peercoin. The next procedure is to add a payment method; the payment can be made through a bank transfer or credit/debit card, click add payment and pick your choice.
A wallet is needed before peercoin is bought. A wallet address would be given to you; this address enables people to send peercoin to you and allows your coin to be secured with the use of a password that is known to you alone.
Exchanges help to trade government-backed currency, such as Euros or US Dollars so that peercoins could be bought and sold. It also facilitates in trading between peercoins and other cryptocurrencies, such as Bitcoin. Trades start by placing buy and sell order; to request an exact amount of peercoins, create a Buy Order.
To offer the sales of peercoin, you need to create a Sell Order. For facilitation of trade, a small proportion is taken by the exchange each time a trade occurs, this is called trading fee. When new currency is withdrawn from an exchange, withdrawal fees are sometimes charged.
Livecoin is a platform for trading multiple cryptocurrencies. It uses the maker/taker fee model with bonuses for makers and competitive fees for takers. It encourages users to provide liquidity rather than taking liquidity from the order book by accepting offers from other users. Livecoin withdrawals and deposits in cryptocurrencies are free, only minimal network fees are charged when withdrawals are made in digital currencies. Trading on livecoin is fast and easy, it offers standing market order, pending order and limit order.
This is also an exchange platform where various cryptocurrencies can be traded, cryptocurrencies such as Bitcoin, Ethereum, Tron, Litecoin, Peercoin etc.
It uses bank-level SSL technology to keep customers secure. It relies on GSLB for stability by using distributed servers. Once your account has been verified, you can trade between different types of cryptocurrencies. Bit-Z has trade histories, reports, real-time market information and API access. It is very simple to open an account with Bit-Z.You just need to register and then verify your account with the use of a code that will be sent to your phone. An additional identification is needed to make withdrawals; this is done for security purposes.
Bit-Z also utilizes 2FA or double verify passwords for additional security. To trade on Bit-z you log in and click “exchange” which is on the top right of the menu and then the trading screen appears. On the trading screen, you choose the currency you want to trade in and then click the currency you want to trade for. Bit-Z charges are relatively low, there are no fees for deposits and withdrawal fees are typically very low.
On this platform, trading fees vary based on the time the order is executed. It is one of the top 5 exchanges by volume.
Peercoin as a peer-to-peer cryptocurrency that has proved to be distinct because of its distinguishing features. Also, it doesn’t have a limit on the number of possible coins. Another of its amazing features is PeerAssets. Peer assets allow peers to issue and transact with assets. It is an emerging cryptocurrency that addresses the biggest challenge of Bitcoin and it is regarded as much better and much more viable alternative to Bitcoin.
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