Blackcoin - PoS (Extremely Energy Efficient). No premine. No IPO. 1% APR

Disclaimer and Transparency: I have a lot of Blackcoin and no Peercoin.

But this is why I feel this discussion will be interesting. I’d like to hear about the merits of PPC and upcoming developments as there are quite a number of similarities for both altcoins.

Proof of Stake

BlackCoin is the first hybrid PoW/PoS altcoin to hit the Proof of Stake only stage. This means BlackCoin is unmineable and new coins will only be created by the Proof of Stake algorithm.

Quick Transactions

Thanks to the Proof of Stake system transactions get confirmed super quick. While other coins take up to ten minutes for their first confirmations, Blackcoin regularly has a first confirmation in ten seconds flat.

Energy Efficient
Since BlackCoin does not accept Proof of Work after the 10,000th block mining is not possible anymore. This makes BlackCoin highly energy efficient.

Extremely Low Inflation
1% compound interest on a yearly basis on the coins you hold. Due to the low 1% interest on BlackCoin, inflation is extremely low.

I’m mr_random from Bitcointalk and a long time Peercoin supporter. I remember messaging Sunny King back when peercoin was just a humble half a cent in value.

I think the Peercoin community should take an interest in Blackcoin as it’s currently in the phase Peercoin ultimately aims to be in - 100% proof of stake.

Hello. I am glad to see more coins trying Proof of Stake, but I do not believe that Blackcoin offers any advantages over Peercoin. I think it actually introduces several disadvantages.

[quote=“virtualfaqs, post:1, topic:2300”]Proof of Stake
BlackCoin is the first hybrid PoW/PoS altcoin to hit the Proof of Stake only stage. This means BlackCoin is unmineable and new coins will only be created by the Proof of Stake algorithm.[/quote]

I see this as a negative. It means that Blackcoin has a very concentrated distribution of wealth. This is especially worrying considering that it is a Proof of Stake coin. Large holders have a dangerous level of control over the security.

[quote=“virtualfaqs, post:1, topic:2300”]Quick Transactions
Thanks to the Proof of Stake system transactions get confirmed super quick. While other coins take up to ten minutes for their first confirmations, Blackcoin regularly has a first confirmation in ten seconds flat.[/quote]

This is also a negative. While faster transactions might appear at first to be a good thing, they actually just bloat up the blockchain, which discourages people from running nodes. They also do not mean much from a security point of view…to ensure the same level of confidence in a transaction the receiver simply needs to wait for more confirmations than other coins i.e. one confirmation in Blackcoin is not as significant as one transaction in Peercoin.

[quote=“virtualfaqs, post:1, topic:2300”]Energy Efficient
Since BlackCoin does not accept Proof of Work after the 10,000th block mining is not possible anymore. This makes BlackCoin highly energy efficient.[/quote]

It is not worth sacrificing a wide distribution for a short-lived energy efficiency advantage. Peercoin is already ~80% PoS, in the long-term it will be just as energy-efficient.

[quote=“virtualfaqs, post:1, topic:2300”]Extremely Low Inflation
1% compound interest on a yearly basis on the coins you hold. Due to the low 1% interest on BlackCoin, inflation is extremely low.[/quote]

This is the same as Peercoin.

So in summary, I think that any advantages Blackcoin claims to have are focused solely on the short-term, and they actually become significant disadvantages in the long-term.

I also think that there is much more development occuring in the Peercoin community. I haven’t seen anything from Blackcoin that is on the same level as Peershares or Peerunity. I can’t even find a whitepaper on their website. The endless advertizing and hype also makes it hard to take them seriously.

Disclaimer: I have a lot of Peercoin and no Blackcoin.

If you have any questions about Peercoin, feel free to ask.

[quote=“mr_random, post:2, topic:2300”]I’m mr_random from Bitcointalk and a long time Peercoin supporter. I remember messaging Sunny King back when peercoin was just a humble half a cent in value.

I think the Peercoin community should take an interest in Blackcoin as it’s currently in the phase Peercoin ultimately aims to be in - 100% proof of stake.[/quote]

Like I said before, reaching that phase too quickly is actually a bad thing as it just makes the distribution unacceptably concentrated.

[quote=“virtualfaqs, post:1, topic:2300”]Quick Transactions
Thanks to the Proof of Stake system transactions get confirmed super quick. While other coins take up to ten minutes for their first confirmations, Blackcoin regularly has a first confirmation in ten seconds flat.[/quote]

Why is the first confirmation 10 secnds when the block time is 1 minute?

[b]Energy Efficient[/b] Since BlackCoin does not accept Proof of Work after the 10,000th block mining is not possible anymore. This makes BlackCoin highly energy efficient.

Those who could mine in the first 10000 minute (1 week) are super rich. Can you find out the top 10 richest addresses? This is why it is dangerous http://www.peercointalk.org/index.php?topic=2731.0

Firstly, it is counter productive complaining about Blackcoin’s initial coin distribution when every coin suffers an unfair coin distribution process.

Peercoin for example, awarded 2 million Peercoins in the first 24 hours of it’s release (http://ppc.cryptocoinexplorer.com/chain/PPCoin?hi=999&count=20).

Bitcoin’s own Satoshi is linked to mining 1 million Bitcoins in the early days.

etc.

However what we can say for Blackcoin is that a large number of people joined in the mining process - extremely likely much more than the people who mined on Peercoins first day, due to cryptos being wildly more popular and as evidence by the enormous traffic on the alt coin sub forum.

Additionally, > 20,000 BTC worth of Blackcoin has been traded on exchanges and that is a conservative estimate. That is roughly half the number of all Blackcoins in existence, in terms of numbers. For a coin that is only a few weeks old, the coins have changed hands a lot. 1 year from now the distribution will be even greater.

Firstly, any blockchain faces bloat in the long run.

Secondly, it’s not regarded as a serious problem as Bitcoin itself which is becoming bloated has proposed many solutions around it - pruning the blockchain, lightweight clients, incentives for running nodes etc.

Thirdly, for security it’s been shown that more confirmations leads to greater security for Litecoin compared to Bitcoin. I don’t see why that would not also apply for Blackcoin compared to Peercoin.

Finally, remember that Peercoin will be running pure proof of stake one day too. So as a peercoin supporter you are shooting yourself in the foot criticising it :wink:

I applaud Peercoin but we are living in the now. Right now Blackcoin is achieving the aim set out by Peercoin of being as energy efficient as possible. What date does Peercoin switch over to pure proof of stake? I bet you cannot answer that.

As discussed above there is no distribution problem any different than any other coin. Which is why it has been embraced so much by the alt coin community.

Actually there is a lot of exciting things happening in the Blackcoin community. I think if we worked together it could even be fruitful for both of our communities.

Check out our Blackcoin cards:

Aren’t they beautiful?:

https://bitcointalk.org/index.php?topic=469640.msg6440955#msg6440955

The software:

https://bitcointalk.org/index.php?topic=469640.msg6492496#msg6492496

We are on vault of satoshi and we are also partnered with coin kite (https://coinkite.com/) including the point of sale terminals for physical merchants.

Our developer also exposed a flaw in pow/pos coins that have low pow difficulty (prompting mintcoin to switch to pure pos too). I also believe he is working to improve the protocol, something that could potentially benefit peercoin.

If anyone is interested in what I have said please feel free to drop by our subreddit at www.reddit.com/r/blackcoin/ or visit our main thread at https://bitcointalk.org/index.php?topic=469640.0 I have much respect for peercoin and the invaluable contributions Sunny has made towards cryptocurrency.

All the best.