Last updated 19/07/2021
Official Website: https://www.peercoin.net/
Peercoin is a peer to peer cryptocurrency designed to be efficient and sustainable. Innovating on Bitcoin’s proof of work algorithm, Peercoin provides a greener solution tackling the issue of wasted energy associated with mining. Through the process of staking Peercoin, new coins are minted into the network in accordance with the Peercoin protocol. The minting process requires very little energy to secure and maintain the network. The Peercoin project is active since 2012, making it one of the earliest and most pioneering blockchain projects. It is the root of one of the industry changing innovations (Proof-of-Stake) and is now leading the development of asset tokenisation protocols.
As Bitcoin is criticised for its high energy consumption, Peercoin was designed to be energy efficient and sustainable long term. Utilising both Proof of Stake and Proof of Work, the network verifies transactions requiring only a small amount of computing power. The only energy required to maintain the network is that of the computer running the software required for minting. As one of the first coins to innovate on traditional mining techniques, Peercoin was a pioneer that made significant improvements in efficiency and influenced future blockchains.
The major features differentiating Peercoin from other cryptocurrencies are its proof of stake and minting process. Instead of deploying large amounts of energy, Peercoin is based on a proof of stake model called coinage. When Peercoin is held in a wallet for more than 30 days, coinage starts to naturally accumulate and can be used to secure the blockchain network. Coinage is calculated by the number of coins held (Example 10) multiplied by the number of days (Example 30 days). The accumulated coinage (Example 300 Coinage) can then be used to solve Peercoin block hashes, with every block solved some of the coinage value is consumed. When coinage is spent and a block is solved, the user is rewarded with an amount of newly minted Peercoin.
Anyone running a full Peercoin node holding Peercoin can participate and benefit from maintaining the network. Once the coins have been transferred to a new wallet or owner, the internal clock will reset, and another 30 days must pass before staking can resume.
The Peercoin protocol relies on staking to secure its network and is designed to not only to be efficient but protect the network from 51% attacks and stop monopoly forces from taking advantage of the mining process. Peercoin plans to move away entirely away Proof of Work and rely solely on a 100% Proof of Stake system.
Users staking coins on the Peercoin network receive an annual interest a 1% of their Peercoin holdings. The rate of rewards do not shrink over time and are distibuter to minter proportionally based on the amount of coins being staked. This feature is deisgned to incentivise Peercoin holders and reward those securing the Peercoin blockchain. The number of new coins minted into circulation is largely dependant on the amount of users staking on the network. Those that do not paricipate in minting do not receive any annual interest or new coins added to their holdings.
The supply of Peercoin is designed to adjust in accordance with the rate at which coins are newly minted and spent on the network. Peercoin has no maximum supply and supports a low decentalised inflation approach to coineconomics. There are three mechanisms that can cause Peercoin supply to change; inflation from proof of work, inflation from proof of stake and deflation from transaction fees. The overall supply of Peercoin will only increase at a rate of 1% of coins staked on the network and not the total supply.
Through the same process as minting, those that own Peercoin (Stakeholders) influence decisions made the blockchain network. As new blocks are produced, stakeholders collectively make decisions on the future of the network through protocol voting. This democratic approach to blockchain governance encourages users to positively participate in maintaining the network.
Peercoin have produced an official wallet that can be used to hold and securely stake PCC. Details can be found on their website here. The wallet is available for desktop devices running Windows, Mac or Linux. There are also several unofficial wallets providers integrated with Peercoin such as Coinomi, Gemmer and UberPay compatible with Android and IOS.
Always conduct your due diligence and research into any wallet provider you are looking to use and ensure you have backed up your wallet.
You can Buy & Sell Peercoin (PPC) here at BC Bitcoin. You can Buy PPC by heading over to the Buy Coins page of our website. PPC is available on BC Bitcoin trading against major fiat currencies: GBP and EUR. Buying PPC has never been easier, simply place your order and provide your wallet address. Once your payment arrives, PPC will be sent directly to your wallet.
Peercoin Official Website: https://www.peercoin.net/
Peercoin Documents: https://docs.peercoin.net/
Peercoin University: https://university.peercoin.net/
Block Explorer: https://chainz.cryptoid.info/ppc/
Disclaimer: The information provided in this article is intended for informational purposes only. It is the readers responsibility to complete their own research and due diligence.