That sounds fine.
With Formatting
Hi, I’m Chronos, and welcome to Part 5 of the Peercoin Primer. Peercoin is one of the world’s most established cryptocurrencies, and each video in this series will explore a different aspect of it.
Show overview onscreen:
Part 1: Launch
Part 2: Security
Part 3: Benefits
Part 4: Economics
Part 5: Mission
In this final video, we’re going to talk about Peercoin’s mission. In particular, we will focus on the role of the Peercoin blockchain itself. Sunny King, the anonymous founder of Peercoin, said in 2013: (pause)
“From my point of view, I think the cryptocurrency movement needs at least one ‘backbone’ currency, that maintains a high degree of decentralization, maintains a high level of security, but doesn’t necessarily provide a high volume of transactions.” (pause)
When Sunny talked about Peercoin as a backbone currency, he was actually introducing a concept that has since become known in the broader crypto community as a settlement layer or base layer.
In the early days of cryptocurrency, it was believed by many enthusiasts thought that decentralized blockchains would compete with payment processing networks such as Visa or Mastercard, and even act as a replacement for paper money. However, in reality it turned out that decentralized blockchains struggle to support high transaction volumes. Because of this limitation, it is difficult for decentralized blockchains to be used on a mass scale.
A more viable path toward global use of cryptocurrency is achieved by shifting the role of the blockchain to that of a settlement layer. This is achieved by splitting the blockchain’s responsibilities of record keeping and transaction processing. With this shift in focus transactions are processed mostly off the blockchain through the use of vertical and horizontal scaling, while the blockchain is used to record final settlement, hence the name settlement layer. This has the effect of increasing - indirectly - the transaction capacity of the blockchain, while permitting maximum decentralization. Let’s take a closer look at the these two forms of off-chain scaling.
Horizontal scaling involves sidechains, which are separate blockchains linked to a parent blockchain. Sidechains are typically designed to increase functionality, providing the user access to low cost and near instant transactions, smart contracts, and overall greater scalability. When the user is finished with these expanded functions, they can settle their coins to the parent blockchain.
Vertical scaling involves independent networks that exist as secondary layers on top of the blockchain, also known as layer 2. These secondary layers undertake functions that the blockchain is unable to achieve by itself, such as processing large volumes at low cost, and high speed payments. Whereas we think of sidechains as allowing the blockchain to scale horizontally, secondary layers allow it to scale vertically. One such example is the Lightning Network, which was designed to vertically scale the Bitcoin blockchain.
Both scaling technologies prevent alleviate congestion on the blockchain by offloading transactions onto separate networks built for high capacity processing. The blockchain, acting as a settlement layer and foundation for these off-chain networks, permanently records final settlement on its ledger. Essentially, sidechains and secondary layers leverage the permanence of the data stored on the settlement layer, expanding utility off-chain by creating new ways of interacting with this data.
Peercoin’s original creators showed incredible forethought in 2012 when they anticipated the need for such a foundational layer. From the outset, all of Peercoin’s design choices were made with this mission in mind. We’ve discussed these design choices in videos 1 to 4; they include: removing the conflict of interests between miners and coin holders by allowing coin holders to mint their own blocks; achieving an efficient and inexpensive security protocol based on scarcity of time, rather than electricity; attaining geographical decentralization of block producers; allowing for 1% annual inflation to prevent deflation and to incentivize minting; and replacing transaction fees with a continuous block reward, as a means of compensating block producers. Peercoin’s characteristics create a stable, secure base for the emerging cryptocurrency eco-system.
At its essence, a blockchain is a distributed public ledger which records and stores information in such a manner that prevents it from being edited or altered. This immutability means data becomes permanently recorded into the blockchain, leading to a state of trustless security where all users of the network can depend on the blockchain’s ability to guarantee the accuracy and permanence of recorded data. This is the core value of the settlement layer and why it must have the characteristics of a blockchain like Peercoin to retain its long-term security.
Peercoin performs particularly well as a settlement layer thanks to its security model. Many settlement layers conflict with scaling because their block producers chase the same users for transaction fees as the node operators of secondary layers. Peercoin avoids this competition - and aligns itself with secondary layers - by maintaining its security through a continuous block reward, rather than transaction fees.
We hope you have enjoyed this, and the previous four videos, and that you have come to the realization that Peercoin is not just another crypto-clone, but an exceptional and well designed blockchain with a lasting mission; that of preparing a foundation for crypto’s re-definition of ownership and trust - away from information flows conducted via central authorities, centralized authorities, and towards a society where every actor, asset and transaction has its own blockchain identity that tracks authenticity. and towards a future based on distributed trust.
If you want to learn more about Peercoin, be sure to head over to the official website at peercoin.net. There’s also a great community, very knowledgeable and friendly, on the official forums at talk.peercoin.net. And lastly, there’s a ton more educational material at university.peercoin.net, where you can really get in-depth with this beautiful blockchain.
If you have any questions or comments, let us know! Post below the video, or just head over to the forums. We’d love to hear from you.
Oh, and don’t forget to subscribe. I’m Chronos. Thanks for watching!
Without Formatting
Hi, I’m Chronos, and welcome to Part 5 of the Peercoin Primer. Peercoin is one of the world’s most established cryptocurrencies, and each video in this series will explore a different aspect of it.
Show overview onscreen:
Part 1: Launch
Part 2: Security
Part 3: Benefits
Part 4: Economics
Part 5: Mission
In this final video, we’re going to talk about Peercoin’s mission. In particular, we will focus on the role of the Peercoin blockchain itself. Sunny King, the anonymous founder of Peercoin, said in 2013: (pause)
“From my point of view, I think the cryptocurrency movement needs at least one ‘backbone’ currency, that maintains a high degree of decentralization, maintains a high level of security, but doesn’t necessarily provide a high volume of transactions.” (pause)
When Sunny talked about Peercoin as a backbone currency, he was actually introducing a concept that has since become known in the broader crypto community as a settlement layer or base layer.
In the early days of cryptocurrency, many enthusiasts thought that decentralized blockchains would compete with payment processing networks such as Visa or Mastercard, and even act as a replacement for paper money. However, in reality it turned out that decentralized blockchains struggle to support high transaction volumes. Because of this limitation, it is difficult for decentralized blockchains to be used on a mass scale.
A more viable path toward global use of cryptocurrency is achieved by shifting the role of the blockchain to that of a settlement layer. This is achieved by splitting the blockchain’s responsibilities of record keeping and transaction processing. With this shift in focus transactions are processed mostly off the blockchain through the use of vertical and horizontal scaling, while the blockchain is used to record final settlement, hence the name settlement layer. This has the effect of increasing - indirectly - the transaction capacity of the blockchain, while permitting maximum decentralization. Let’s take a closer look at these two forms of off-chain scaling.
Horizontal scaling involves sidechains, which are separate blockchains linked to a parent blockchain. Sidechains are typically designed to increase functionality, providing the user access to low cost and near instant transactions, smart contracts, and overall greater scalability. When the user is finished with these expanded functions, they can settle their coins to the parent blockchain.
Vertical scaling involves independent networks that exist as secondary layers on top of the blockchain, also known as layer 2. These secondary layers undertake functions that the blockchain is unable to achieve by itself, such as processing large volumes at low cost, and high speed payments. Whereas we think of sidechains as allowing the blockchain to scale horizontally, secondary layers allow it to scale vertically. One such example is the Lightning Network, which was designed to vertically scale the Bitcoin blockchain.
Both scaling technologies alleviate congestion on the blockchain by offloading transactions onto separate networks built for high capacity processing. The blockchain, acting as a settlement layer and foundation for these off-chain networks, permanently records final settlement on its ledger. Essentially, sidechains and secondary layers leverage the permanence of the data stored on the settlement layer, expanding utility off-chain by creating new ways of interacting with this data.
Peercoin’s original creators showed incredible forethought in 2012 when they anticipated the need for such a foundational layer. From the outset, all of Peercoin’s design choices were made with this mission in mind. We’ve discussed these design choices in videos 1 to 4; they include: removing the conflict of interests between miners and coin holders by allowing coin holders to mint their own blocks; achieving an efficient and inexpensive security protocol based on scarcity of time, rather than electricity; attaining geographical decentralization of block producers; allowing for 1% annual inflation to prevent deflation and to incentivize minting; and replacing transaction fees with a continuous block reward, as a means of compensating block producers. Peercoin’s characteristics create a stable, secure base for the emerging cryptocurrency eco-system.
At its essence, a blockchain is a distributed public ledger which records and stores information in such a manner that prevents it from being edited or altered. This immutability means data becomes permanently recorded into the blockchain, leading to a state of trustless security where all users of the network can depend on the blockchain’s ability to guarantee the accuracy and permanence of recorded data. This is the core value of the settlement layer and why it must have the characteristics of a blockchain like Peercoin to retain its long-term security.
Peercoin performs particularly well as a settlement layer thanks to its security model. Many settlement layers conflict with scaling because their block producers chase the same users for transaction fees as the node operators of secondary layers. Peercoin avoids this competition - and aligns itself with secondary layers - by maintaining its security through a continuous block reward, rather than transaction fees.
We hope you have enjoyed this, and the previous four videos, and that you have come to the realization that Peercoin is not just another crypto-clone, but an exceptional and well designed blockchain with a lasting mission; preparing a foundation for crypto’s re-definition of ownership and trust - away from centralized authority and towards a future based on distributed trust.
If you want to learn more about Peercoin, be sure to head over to the official website at peercoin.net. There’s also a great community, very knowledgeable and friendly, on the official forums at talk.peercoin.net. And lastly, there’s a ton more educational material at university.peercoin.net, where you can really get in-depth with this beautiful blockchain.
If you have any questions or comments, let us know! Post below the video, or just head over to the forums. We’d love to hear from you.
Oh, and don’t forget to subscribe. I’m Chronos. Thanks for watching!
A few alternations below. On a few, I added notes to explain my thinking.
+++
Hi, I’m Chronos, and welcome to Part 5 of the Peercoin Primer. Peercoin is one of the world’s most established cryptocurrencies, and each video in this series will explore a different aspect of it.
Show overview onscreen:
Part 1: Launch
Part 2: Security
Part 3: Benefits
Part 4: Economics
Part 5: Mission
In this final video, we’re going to talk about Peercoin’s mission. In particular, we will focus on the role of the Peercoin blockchain itself. Sunny King, the anonymous founder of Peercoin, said in 2013: (pause)
“From my point of view, I think the cryptocurrency movement needs at least one ‘backbone’ currency, that maintains a high degree of decentralization, maintains a high level of security, but doesn’t necessarily provide a high volume of transactions.” (pause)
When Sunny talked about Peercoin as a backbone currency, he was actually introducing a concept that has since become known in the broader crypto community as a settlement layer or base layer.
In the early days of cryptocurrency, many enthusiasts thought that decentralized blockchains would compete with payment processing networks such as Visa or Mastercard, and even act as a replacement for paper money. However, in reality it turned out that decentralized blockchains struggle to support high transaction volumes. Because of this limitation, it is difficult for decentralized blockchains to be used on a mass scale.
A more viable path toward global use of cryptocurrency is achieved by shifting the role of the blockchain to that of a settlement layer. This is achieved by splitting the blockchain’s responsibilities of record keeping and transaction processing. With this shift in focus transactions are processed mostly off the blockchain through the use of vertical and horizontal scaling, while the blockchain is used to record final settlement, hence the name settlement layer. This has the effect of increasing - indirectly - the transaction capacity of the blockchain, while permitting maximum decentralization. Let’s take a closer look at these two forms of off-chain scaling.
[Note on the below: “settle” is used, I suspect, to tie in with settlement layer, but I don’t it quite works, nor is it necessary. So I suggest “return”]
Horizontal scaling involves sidechains, which are separate blockchains linked to a parent blockchain. Sidechains are typically designed to increase functionality, providing the user with access to low cost and near instant transactions, smart contracts, and overall greater scalability. When the user is finished with these expanded functions, they can settle return their coins to the parent blockchain.
[Note on the below: the three paragraphs explaining scaling refer to: “near instant transactions” (previous para), “high speed payments” (below para), and “high capacity processing” (summary para). I feel it is repetitive, so suggest removing “high speed payments” from the below/middle paragraph]
Vertical scaling involves independent networks that exist as secondary layers on top of the blockchain, also known as layer 2. These secondary layers undertake functions that the blockchain is unable to achieve by itself, such as processing large volumes at low cost, and high speed payments. Whereas we think of sidechains as allowing the blockchain to scale horizontally, secondary layers allow it to scale vertically. One such example is the Lightning Network, which was designed to vertically scale the Bitcoin blockchain.
[Note on the below: I feel we’re over using the word settlement, so have suggested another form of wording]
Both scaling technologies alleviate congestion on the blockchain by offloading transactions onto separate networks built for high capacity processing. The blockchain, acting as a settlement layer and foundation for these off-chain networks, permanently records final settlement the final outcome on its ledger. Essentially, sidechains and secondary layers leverage the permanence of the data stored on the settlement layer, expanding utility off-chain by creating new ways of interacting with this data.
[Note on the below: it was my idea to insert “mission” rather than “goal” at this point, but I think we could accused of “over specifying” Sunny’s thinking in 2012. I think “goal” is safer]
Peercoin’s original creators showed incredible forethought in 2012 when they anticipated the need for such a foundational layer. From the outset, all of Peercoin’s design choices were made with this mission goal in mind. We’ve discussed these design choices in videos 1 to 4; they include: removing the conflict of interests between miners and coin holders by allowing coin holders to mint their own blocks; achieving an efficient and inexpensive security protocol based on scarcity of time, rather than electricity; attaining geographical decentralization of block producers; allowing for 1% annual inflation to prevent deflation and to incentivize minting; and replacing transaction fees with a continuous block reward, as a means of compensating block producers. Peercoin’s characteristics create a stable, secure base for the emerging cryptocurrency eco-system.
At its essence, a blockchain is a distributed public ledger which records and stores information in such a manner that prevents it from being edited or altered. This immutability means data becomes permanently recorded into the blockchain, leading to a state of trustless security where all users of the network can depend on the blockchain’s ability to guarantee the accuracy and permanence of recorded data. This is the core value of the settlement layer and why it must have the characteristics of a blockchain like Peercoin to retain its long-term security.
Peercoin performs particularly well as a settlement layer thanks to its security model. Many alternative settlement layers conflict with scaling because their block producers chase the same users for transaction fees as the node operators of secondary layers. Peercoin avoids this competition - and aligns itself with secondary layers - by maintaining its security through a continuous block reward, rather than transaction fees.
We hope you have enjoyed this, and the previous four videos, and that you realise have come to the realization that Peercoin is not just another crypto-clone, but an exceptional and well designed blockchain with a lasting mission; preparing a foundation for crypto’s re-definition of ownership and trust - away from centralized authority and towards a future based on distributed trust.
If you want to learn more about Peercoin, be sure to head over to the official website at peercoin.net. There’s also a great community, very knowledgeable and friendly, on the official forums at talk.peercoin.net. And lastly, there’s a ton more educational material at university.peercoin.net, where you can really get in-depth with this beautiful blockchain.
If you have any questions or comments, let us know! Post below the video, or just head over to the forums. We’d love to hear from you.
Oh, and don’t forget to subscribe. I’m Chronos. Thanks for watching!
+++
Finally, I don’t feel the sentence starting, “Essentially, sidechains…” is necessary, but will let others decide!
I will accept these changes because I like them, but this has to be the final version because we want Chronos to be able to get started.
PS: I would prefer the sentence starting essentially not be removed. It is important to me that it gets included.
Hi, I’m Chronos, and welcome to Part 5 of the Peercoin Primer. Peercoin is one of the world’s most established cryptocurrencies, and each video in this series will explore a different aspect of it.
Show overview onscreen:
Part 1: Launch
Part 2: Security
Part 3: Benefits
Part 4: Economics
Part 5: Mission
In this final video, we’re going to talk about Peercoin’s mission. In particular, we will focus on the role of the Peercoin blockchain itself. Sunny King, the anonymous founder of Peercoin, said in 2013: (pause)
“From my point of view, I think the cryptocurrency movement needs at least one ‘backbone’ currency, that maintains a high degree of decentralization, maintains a high level of security, but doesn’t necessarily provide a high volume of transactions.” (pause)
When Sunny talked about Peercoin as a backbone currency, he was actually introducing a concept that has since become known in the broader crypto community as a settlement layer or base layer.
In the early days of cryptocurrency, many enthusiasts thought that decentralized blockchains would compete with payment processing networks such as Visa or Mastercard, and even act as a replacement for paper money. However, in reality it turned out that decentralized blockchains struggle to support high transaction volumes. Because of this limitation, it is difficult for decentralized blockchains to be used on a mass scale.
A more viable path toward global use of cryptocurrency is achieved by shifting the role of the blockchain to that of a settlement layer. This is accomplished by splitting the blockchain’s responsibilities of record keeping and transaction processing. With this shift in focus transactions are processed mostly off the blockchain through the use of vertical and horizontal scaling, while the blockchain is used to record final settlement, hence the name settlement layer. This has the effect of increasing - indirectly - the transaction capacity of the blockchain, while permitting maximum decentralization. Let’s take a closer look at these two forms of off-chain scaling.
Horizontal scaling involves sidechains, which are separate blockchains linked to a parent blockchain. Sidechains are typically designed to increase functionality, providing the user with access to low cost and near instant transactions, smart contracts, and overall greater scalability. When the user is finished with these expanded functions, they can return their coins to the parent blockchain.
Vertical scaling involves independent networks that exist as secondary layers on top of the blockchain, also known as layer 2. These secondary layers undertake functions that the blockchain is unable to achieve by itself, such as processing large volumes at low cost. Whereas we think of sidechains as allowing the blockchain to scale horizontally, secondary layers allow it to scale vertically. One such example is the Lightning Network, which was designed to vertically scale the Bitcoin blockchain.
Both scaling technologies alleviate congestion on the blockchain by offloading transactions onto separate networks built for high capacity processing. The blockchain, acting as a settlement layer and foundation for these off-chain networks, permanently records the final outcome on its ledger. Essentially, sidechains and secondary layers leverage the permanence of the data stored on the settlement layer, expanding utility off-chain by creating new ways of interacting with this data.
Peercoin’s original creators showed incredible forethought in 2012 when they anticipated the need for such a foundational layer. From the outset, all of Peercoin’s design choices were made with this goal in mind. We’ve discussed these design choices in videos 1 to 4; they include: removing the conflict of interests between miners and coin holders by allowing coin holders to mint their own blocks; achieving an efficient and inexpensive security protocol based on scarcity of time, rather than electricity; attaining geographical decentralization of block producers; allowing for 1% annual inflation to prevent deflation and to incentivize minting; and replacing transaction fees with a continuous block reward, as a means of compensating block producers. Peercoin’s characteristics create a stable, secure base for the emerging cryptocurrency eco-system.
At its essence, a blockchain is a distributed public ledger which records and stores information in such a manner that prevents it from being edited or altered. This immutability means data becomes permanently recorded into the blockchain, leading to a state of trustless security where all users of the network can depend on the blockchain’s ability to guarantee the accuracy and permanence of recorded data. This is the core value of the settlement layer and why it must have the characteristics of a blockchain like Peercoin to retain its long-term security.
Peercoin performs particularly well as a settlement layer thanks to its security model. Many alternative settlement layers conflict with scaling because their block producers chase the same users for transaction fees as the node operators of secondary layers. Peercoin avoids this competition - and aligns itself with secondary layers - by maintaining its security through a continuous block reward, rather than transaction fees.
We hope you have enjoyed this, and the previous four videos, and that you realise that Peercoin is not just another crypto-clone, but an exceptional and well designed blockchain with a lasting mission; preparing a foundation for crypto’s re-definition of ownership and trust - away from centralized authority and towards a future based on distributed trust.
If you want to learn more about Peercoin, be sure to head over to the official website at peercoin.net. There’s also a great community, very knowledgeable and friendly, on the official forums at talk.peercoin.net. And lastly, there’s a ton more educational material at university.peercoin.net, where you can really get in-depth with this beautiful blockchain.
If you have any questions or comments, let us know! Post below the video, or just head over to the forums. We’d love to hear from you.
I’m Chronos. Thanks for watching!
1 Like
Thanks Sentinel. I am happy that this is the final version.
Sorry, I’d like to raise this:
I think it ends better as simply: “I’m Chronos. Thanks for watching!”.
Oops, we used “achieved” twice in a row. Here’s a suggested correction.
We can also make this change: Oh, and don’t forget to subscribe.
Nice work! I’ll take this to recording this weekend.
@Chronos the 2nd “achieved” was originally “attained” before it was changed. I think simply switching it back would solve the issue.
Rather than using “attained”, try “accomplished” in place of the second “achieved”.
1 Like
That’s ok. Let’s do that.
1 Like
What is the best source to use for Sunny’s quote?
From my point of view, I think the cryptocurrency movement needs at least one ‘backbone’ currency, that maintains a high degree of decentralization, maintains a high level of security, but doesn’t necessarily provide a high volume of transactions.
Sunny posted this answer in an interview in the chatbox of Peercointalk.org. We no longer have a history record of the chatbox, but I did post the interview myself on this forum shortly after it took place…
It looks like the quote has been slightly edited from its original form to sound better…
Original…
Newer version in the script…
I’m not sure when these slight edits happened.
1 Like
Thanks, that’s all I need for now.
Now that I think of it, I think I might have made those edits when I placed the quotes in Peercoin University. As I mentioned, they were originally made in chat, so it was not professionally edited before Sunny posted them. I believe I wanted to present the quotes in a better light, so I made some slight edits to them.
For the section below, I’m writing an onscreen summary of each point.
Points:
- Removing the conflict of interests between miners and coin holders by allowing coin holders to mint their own blocks;
- Achieving an efficient and inexpensive security protocol based on scarcity of time, rather than electricity, attaining geographical decentralization of block producers;
- Allowing for 1% annual inflation to prevent deflation and to incentivize minting;
- Replacing transaction fees with a continuous block reward, as a means of compensating block producers.
Onscreen summaries:
- Stakeholder Security
- Efficient Blockchain
- Reliable Supply
- Continuous Reward
Any feedback, thoughts or suggestions?
This was actually a separate point on its own. So make it #3.
- Geographical Decentralization
Limited inflation is good - but an alternative is “Inflation permitted”, which puts a positive spin on it.
Actually, scrap “Inflation permitted”. The protocol makes inflation mandatory.