Peercoin is a peer to peer cryptocurrency that which was founded by Scott Nadal and Sunny King. King back in August 12.
Features of Peercoin
Peercoin, despite sharing the source code of Bitcoin, is significantly different from Bitcoin. The main features of this crypto are as follows:
Although Peercoin has been designed to eventually attain an annual inflation rate of 1%, it does not have a hard limit on the number of possible coins and not like number of Bitcoins which are limited.
The coin has greater long-term scalability since the transaction fee of 0.01 PPC/kb paid to the network is destroyed. It has a minimal transaction fees.
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As stated before, Peercoin uses both Proof-of-Work and Proof-of-Stake, and thereby it tries to do away with the inefficiency of bitcoin’s only proof of work approach. It also allows the coin to establish long-term energy efficiency.
Peercoin uses the SHA256 encryption algorithm as Bitcoin (SHA256). It initially forked from Bitcoin’s source code and has similarities with Bitcoin’s source code.
Peercoin is mined using ASICs. It has over 238 commits and over 100 contributions to its GitHub source codes.
Unlike Bitcoin which has a coin cap of (21 million), Peercoin has no cap over its maximum supply.
Bitcoin mining offers various rewards to the miners which fluctuates based on various factors. In Piercing however, the rewards keep on decreasing, which makes the transformation from Proof-of-Work to Proof-of-Stake convenient.
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Peercoin uses a popular concept called coinage, for their Proof-of-Stake model. The concept essentially states that when you hold the Peercoins in a wallet for more than 30 days, you automatically start accumulating coinage. It is calculated as a function of the volume of the coins and their age. It depends on the user whether or not he wants to spend those coins somewhere or whether he wants to consume all the coinage. The user also has the option of holding them in a coin wallet and using their coinage for solving block hashes. Coinage value is lost with every block that is solved.
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