Peercoin (PPC) is a decentralized digital cryptocurrency, peer-to-peer. It ‘a payment network, with no single point of control, chaired by an issuing authority (such as the Federal Reserve or the BCE). Peercoin uses the encryption and peer-to-peer to validate the budgets and transactions. It ‘also the first cryptocurrency to use the technology proof-of-stake; a solution to save energy for ensuring the security of the network, designed and built by the architect of Peercoin, Sunny King. Bitcoin relies on the Mining (Proof-of-Work) to ensure its network and to validate the transactions. Users who undermine are rewarded with Bitcoins, rewarding them with an incentive to keep the safe network. The inherent problem of extraction through the proof-of-work is the ” computational arms race ” to have a more powerful hardware dedicated to the mining/extraction so they can increase the advantage over other miners, increasing their chances of compensation.
What is Proof of Stake or minting?
Sunny King is the inventor and architect of Peercoin. In Peercoin the Proof-of-Work is only used to agree a more equitable distribution of the coins, the opposite of an IPO (Initial Public Offering). To maintain the security of the network / network, Sunny King invented a new mechanism called Proof-of-Stake, which allows users to secure the network through Peercoins they already own. Not transando your Peercoins and keeping them in your portfolio, you can activate the process called “minting” or coinage, which provides security to the network by offering an annual interest rate of 1% as a reward. Thought also to encourage savings. The minting proof-of-stake is also an energy-saving solution used for the security of the network, allowing the entire system to be supported by hardware with low consumption, encouraging the participation of simple computer. Equal participation is important because it enables Peercoin to stay as decentralized as possible. Sunny King is the inventor and architect of Peercoin. In Peercoin the Proof-of-Work is only used to agree a more equitable distribution of the coins, the opposite of an IPO (Initial Public Offering). To maintain the security of the network, Sunny King invented a new mechanism called Proof-of-Stake, which allows to secure the network through Peercoins that the users already own. You can keep the Peercoins in your wallet and so you can activate the process called “minting” or coinage, which provides security to the network by offering an annual interest rate of 1% as a reward. Thought also to encourage savings. The minting proof-of-stake is also an energy-saving solution used for the security of the network, allowing the entire system to be supported by hardware with low consumption, encouraging the participation of simple computers. An equal participation is important because it enables Peercoin to stay as decentralized as possible. The only way for a person or an entity to attack the Peercoin network is to acquire 51% of the coins that are minted. In practice, in an attempt to acquire the amount of money needed to carry out the attack, it would drive the price to astronomical levels, making it counterproductive for the attacker, forced to put his entire investment in the total risk. It is apparent that the system proof-of-stake has a considerable benefit or rather that the owners of the assets of the network (owners of Peercoins) are also those that control the network, the opposite of what happens in the Bitcoin network where there is a dissociation between those who control the network (miners) and those who own the assets (owners of Bitcoins). Instead in Peercoin these interests are aligned. The owners and depositors of Peercoins are those that control the network.The main strengths of Peercoin are increased security, energy sustainability and its economic properties, which allow it a long-term reserve value function called “backbone currency”.