Welcome to Peercointalk!
Feel free to introduce yourself in the thread below. Tell us about yourself and what interested you in Peercoin.
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- Peercoin.net - Official Peercoin website.
- Team Updates - Developer News.
- Blog - Peercoin Blog on Medium.
- Articles & Interviews - Peercoin media.
- Tutorials - Intro videos about Peercoin.
- Discord - Official community chat room.
- Telegram - Peercoin Telegram group.
- Twitter - Twitter feed for the latest Peercoin news.
- Facebook - Facebook page for the latest news.
- Reddit - Official Reddit community for Peercoin.
- Google+ - Peercoin’s Google Plus page.
- YouTube - Helpful videos and tutorials.
Wallets & Exchanges
- Main Wallet - Main Peercoin reference client.
- Minting Guide - A complete guide on how to mint.
- Paper Wallets - Peercoin paper wallet generator.
- Exchange List - Buy and sell Peercoin.
- GitHub Repo - Peercoin GitHub repository.
- Project List - Fund community projects.
- Peercoin Team - Current team members
- PeerAssets - Token Issuance Protocol
- Indicium - DAC for crypto index funds.
- Peerbox - Secure minting and running nodes.
- Graphics - Peercoin’s full logo package.
- Default Explorer - Official Block Explorer
- Block Explorers - Block Explorer List.
- Peercoin Wisdom - Trading Charts.
- Mining Pools - A list of various mining pools.
- PoS Calculator - Minting profitability calculator.
- Vanity Addresses - Personalize your Peercoin address.
- Transifex - Peercoin.net Translations.
- Donate - Help keep the forum running.
Chat With Us
We provide two chat services for our community. Discord is our main community hub besides the forum and it consists of multiple channels where Peercoin’s developers hang out and chat and answer questions. We also operate a Telegram group.
#What is Peercoin?
Peercoin (PPC) is a peer-to-peer, decentralized, digital cryptocurrency. It is a payment network without a single point of control or issuing authority (like the US Federal Reserve). Peercoin relies on cryptography and peer-to-peer networking to validate balances and transactions. It is also the first cryptocurrency to use proof-of-stake technology, an energy efficient solution to securing its network, which was invented by Peercoin’s architect, Sunny King.
The Problem With Proof of Work Based Blockchains
Bitcoin relies on Mining (Proof-of-Work) to secure its network and validate transactions. Users who mine are rewarded with Bitcoins, thus providing them with an incentive to secure the network. The inherent problem with proof-of-work mining is that it creates a “computational arms race” for more and more powerful hardware dedicated to mining to gain an advantage over others and increase the chances of receiving a reward.
As seen with Bitcoin, this competition shuts out most people from the mining process and pushes control of the network into the hands of those who can afford it. Thus, proof-of work mining has turned Bitcoin from a decentralized network where anyone can participate, into a network that has centralized control into the hands of the few. This is a long term problem for Bitcoin because it increases the risk of a person or entity gaining control of 51% of the mining power, allowing them to attack the network by reversing transactions, blocking confirmations, performing double spends and other attacks which could destroy confidence in Bitcoin. Centralized cryptocurrencies also make easier targets for governments to shut down.
Why Proof of Stake Makes Peercoin a Superior Alternative
Peercoin was designed by developer and architect Sunny King. Peercoin uses Proof-of-Work solely as a way to distribute coins more fairly, as opposed to an IPO (Initial Public Offering). To maintain the security of the network, Sunny King invented a new mechanism called Proof-of-Stake, which allows people to secure the network using the Peercoins they already hold. While not transacting with your Peercoins, you can hold them in your wallet and engage in a process called “minting,” which secures the network and offers you a 1% annual reward. This encourages saving. Proof-of-stake minting is an energy efficient solution to securing the network, meaning that the entire network can be sustained on low-powered hardware, allowing even basic computers to participate. Equal participation is important because it allows Peercoin to remain as decentralized as possible.
The only way for a person or entity to attack the Peercoin network is for them to acquire 51% of the coins that are minting. In practice, attempting to purchase the amount of coins necessary to carry out an attack would drive the price up to astronomical levels, making it counter-productive for an attacker because they would be forced to put their entire investment at risk.
One other major benefit in a proof-of-stake system is that the owners of the network assets (peercoin holders) are also the ones who control the network, as opposed to Bitcoin where there is a disassociation between those who control the network (miners) and those who own its assets (bitcoin holders). In Peercoin these interests are aligned. Peercoin holders are the ones who control the network.
The main strengths of Peercoin are sustainability, increased security (particularly against the “51% attack”), and its economic properties, which allow it to function as a long-term store of value, or “backbone” currency. In technical terms, Peercoin can be expressed as:
- Proof-of-Stake, a sustainable coin generation model where a 1% annual reward is generated on coins held.
- Absence of hard limit on total coins in existence, modeling the supply of natural resources such as gold.
- Presence of 0.01 PPC/kb network transaction fee that is destroyed rather than paid to miners, in order to offset inflation caused by the minting of new coins.
- Transaction fee also limits casual, micro-sized transactions, making Peercoin’s blockchain small and lean, even after almost 4.5 years.
Here is a quote on Peercoin’s underlying purpose by its creator, Sunny King…
[quote=Sunny King]"Both PPC and XPM are designed to last. PPC is designed with energy efficiency, XPM is designed with energy multiuse. Bitcoin has a long term uncertainty as to whether transaction fees can sustain good enough level of security. Before that the main concern is how to balance transaction volume and transaction fee levels. Currently I get the feeling that bitcoin developers favor very low transaction fees and very high transaction volume, to be competitive against centralized systems (paypal, visa, mastercard etc) in terms of transaction volume, to the point of sacrificing decentralization. This also brings major uncertainties to bitcoin’s future.
From my point of view, I think the cryptocurrency movement needs at least one ‘backbone’ currency, or more, that maintains high degree of decentralization, maintains high level of security, but not necessarily providing high volume of transactions. Thinking of savings accounts and gold coins, you don’t transact them at high velocity but they form the backbone of the monetary systems.
Pure proof-of-work systems such as bitcoin is not 100% suitable for this task. This is because transaction fee is not a reliable incentive to sustain network security. If the mining generation amount is kept constant (there have been several such attempts in altcoins) it would work better security-wise but then it would also significantly weaken the scarcity property of the currency. XPM’s inflation model is designed in such a way that it could serve as backbone currency better than bitcoin if needed, because it could maintain high security reliably for longer, with reasonably good scarcity property as well. Of course that’s only from architect’s point of view, whether or not it would be chosen by the market is a whole different matter.
PPC is designed to serve even better as a backbone currency. The proof-of-stake technology in PPC is not only energy efficient; it also maintains high level of security without relying on transaction fee. Thus PPC could be safely designed with strong scarcity property yet serving well as backbone currency. Both PPC and XPM use protocol enforced transaction fees, which reflects my preference that high transaction volume is discouraged in favor of serving as backbone currencies.
Right now if we are talking about micropayments in the US$1 range, both PPC and XPM still handle them with much lower overhead than credit card network. In the long term micropayments should be provided by centralized providers, or a less decentralized network optimized for high capacity transaction processing.
On the other hand there is no promise that minimum transaction fee wouldn’t be adjusted. If processing capacity of personal computers continues to advance at the current pace, both max block size and minimum transaction fee could very well be adjusted at some point. However I do take a very cautious approach to adjusting transaction fees, as opposed to bitcoin devs. The impact to the fitness of the currency as a backbone currency is of great concerns to me."[/quote]
As you can see, Peercoin has been carefully designed with the long-term in mind. It was built to last. Many projects are being worked on simultaneously. Together, we are working to build the world’s most decentralized, efficient and sustainable network!