Welcome to Peercointalk!
Hi, thanks for joining and welcome to Peercointalk!
Please take this opportunity to introduce yourself in this thread below.
We have provided many important links below such as our social media feeds so you can subscribe to the latest news, beginner tutorials, the latest development projects as well as a short introduction to help you get started with Peercoin. For a few quick tips on getting started as a new forum user, check out this blog post.
As you participate here, we’ll get to know you, and temporary new user limitations will be lifted. Over time you’ll gain trust levels that include special abilities to help us manage our community together.
This forum is provided as a service to the Peercoin community. If you find it useful, please donate to keep it running. Any donations are appreciated, thanks!
Chat With Us
We also provide an active chat room with multiple channels where you can talk to Peercoin developers live. You can check it out at peercoin.chat. The main General channel is also connected to our Telegram channel via bots so that users of both services can communicate with each other.
Please remember to introduce yourself and feel free to ask any questions you may have about peercoin. Thanks for joining Peercointalk and enjoy your stay!
Table of Contents
- Chat Rooms
- Learn More
- Project Development
- Wallets & Exchanges
- Minting & Mining
- Peercoin Team
- What is Peercoin?
- The Problem With Proof-of-Work Based Blockchains
- Why Proof of Stake Makes Peercoin a Superior Alternative
Talk.peercoin.net - The official Peercoin forum.
Peercoin.chat - Peercoin's official chat room.
Telegram - Peercoin chat service on Telegram.
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
Minting & Mining
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...
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!