Since Peercoin is mentioned directly in their white paper I thought I’d open a thread to discuss the design of the coin and what pros/cons it will have for PPC.
Ok, that was interesting. Correct me if I’m wrong but I think they make a case for a 100% proof of stake model. They state that this would be more resistant to attacks than the PoS/PoW model Peercoin is based on.
I think the jury is out on this one. NXT crypto is basically trying this out with their 100% PoS coin. It introduces all kinds of other issues and initial distributions of coins is one of them. It is a big experiment which may succeed or may fail, but it is worth trying given the 51% threads.The whole concept of a 100% decentral crypto currency is basically still being tested as we speak.
I think Peercoin has protected itself against 51% attacks by introducing PoS and still keeping a centralised component which is highly debated but appears to be effective at this stage (I think another coin survived an attack with this component). In the not too distant future I expect that Peercoin will get rid of the central component, probably when the PoW component becomes less attractive for miners and PoS becomes more important.
At that point Peercoin will become something which I think is described in the whitepaper. An evolutionary model. NXT follows more a revolutionary model which is not for the faint at heart, but interesting to watch.
My 0.02 PPC
Hey. I work on a semi-official basis with Invictus.
We wholeheartedly believe in proof-of-stake or something like it is the future.
Fair distribution seems to be the main problem with 100% proof-of-stake. For now the best model is to balance miners and buyers. See our Protoshares/Angelshares method.
Wow that is a poorly written paper. Even though I want to very much, I just can’t figure out what it is that they are proposing. Maybe someone can explain it in a nice bulleted list what it is they propose, and how it differs from what is available. Then I can try and reread the paper for the details (if they’re actually even in there).
Its Proof-of-stake that you generate by sending transactions rather than minting. Same security benefits of Peercoin, but takes out mining all together. So when you spend the coins are are actually securing the network, by including the hash of the latest block in your transaction.
Less poorly written, more cryptocoin rocket science. It takes a few reads to digest.
Yeah I got that part from the abstract, but there are some big questions that they just skim over. It’s certainly an interesting idea, but I’m not sure it would work in practice.
How are you going to guarantee people are going to be online to accept transactions if you take out mining/minting? How will you prevent blockchain bloating? Also, the risk of double spend remains ever present. Who’s going to sacrifice a big stack of coindays to prevent some douchebag from doublespending? You? Me? I don’t think so! Is this better than simple PoS like NXT?
I kindof like NXT except for it being closed source and very very very poorly distributed initially. If someone starts an open source version of Nxt in a fairer way, I’ll probably buy me some of those coins.