Your opinion: Usecases for Peercoin

General
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This is a questionnaire about the possible uses of Peercoin and its sub-projects (Peerassets, etc.).

Bitcoin has payment, Ethereum has smart contracts, Augur has bets, IOTA has a ledger without blockchain.

  1. What is Peercoin made for, what do you think it will be really used for (besides speculation)?
  2. What is revolutionary?
  3. What is a bit similar to competitors, but better (or worse)?
  4. Why should others know (and use) Peercoin?
  5. What do you miss, what is missing and should be improved (examples)?
  6. What are you afraid of, what are possible dangers?

I am really curios about your responses and hope for many participants and answers.

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There are three reasons why I hold Peercoin:

  1. Proof-of-stake means users decide the rules of the protocol, not miners. In Peercoin, miners can’t hold users hostage, like it happens in Bitcoin with the blocked activation of Segwit.

  2. The economic model of Peercoin will be more sustainable longterm compared to Bitcoin: In Peercoin, the cost for securing the network is 1% for everyone, whereas in Bitcoin, only users that transact have to pay for the security of the network, while users that just hold their coins do not have any costs - once that the block reward has become negligible.

  3. I like that our new project lead Peerchemist is in favour of not discontinuing Proof-of-Work. It’s not just to help the distribution, it’s a philosophical thing. I don’t want to be part of a network in which only the early adopters can print new money and outsiders are 100% dependent on the goodwill of stakeholders to be able to acquire some stake from them in exchange for another asset.

Many of these things are not obvious, even not for people who have been in crypto for several years. My wish is that we bring that message out to those people who plan to invest in a cryptocurrency for the longterm, and not just hop from one coin to another.

Once that Sha256-ASICs have hit a performance-ceiling, we should change our Proof-of-Work reward algorithm so that inflation increases when the difficulty goes up, and decreases when the difficulty goes down. That would insure a more stable price and more adoption as a store of value.

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It’s an innovative, self-sustaining record of agreement amongst strangers in a strange world. Its broadest and most important use case is a concrete statement of subjective truth. The most beautiful thing about Peercoin is that it forces people to not take collective memory for granted, as the cost for information is so fundamentally defined. I am most worried that it will be derailed by social politics.

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Someone (dmhco) posted this in the chat:

For 3 reasons (cause 3 reasons is easy for people to understand not empirically because there are 3 reasons btw lol). here they are:

Reason 1 is the same reason I would have given you and WAS giving you in 2014/5: if you are buying Bitcoin, why wouldn’t you buy Peercoin? This makes no sense, at least in terms of diversifying just 10% of your portfolio into PPC. PPC is technologically superior and just as safe. Simply put, it makes no sense to be involved in Crypto and NOT to own the 3rd Crypto

Reason 2 is kind of an evolved response to Reason 2: with the propagation of Crypto markets in 2017, we can now view Ethereum in the same light: if you are buying ETH then why not buy PPC? We have similar “smart” functionality on the network, which will be a value attraction over time. Let’s look at BTC and ETH combined now: that’s $69b. 10% of that market is a realistic goal for PPC - that is $6.9bn. And also we offer our own holders essentially a rights issue on the Coins; so you don’t own the Coins, it only gets more expensive not to buy them

Reason 3 has to do with how Value Networks evolve over time. They are more valuable the inherently more populated, versatile and tight-knit the communities on the network are. With the propagation of PeerAssets technology and the developments we have underway, combined with the vintage Crypto legacy status we hold (a very unique form of Goodwill) buying ANY Crypto right now without buying PPC would be like betting on a brand new soda pop and leaving Pepsi to hang out dry when it’s $3 a share. Yet I know how many restaurants are gonna serve Pepsi tomorrow and I know that has inherent value - so simply, participating in Crypto and not participating in PPC now shows that either you don’t understand the Crypto market or you don’t understand how markets in general work

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I think it depends on whether you’re talking about Peercoin the token or Peercoin the blockchain. Due to PeerAssets and other future functionality, there are an unlimited number of use cases for the blockchain. At its heart, it’s a distributed ledger and can record or do anything any other blockchain can do.

The main difference is in the ability for the network to sustain itself indefinitely, as well as the ability for the users to control the network directly, both due to PoS. People who desire more of a say in the process and a network that is stable and sustainable far into the future will choose Peercoin.

Peercoin the token will have more value as the blockchain gains more apps and services, as it is the native token of the network required for transactions and other actions performed by the user.

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The killer app: Peercoin as Money

What is “money” or “currency”? I tend to agree with Vitalik Buterin when he says to treat the three fundamental uses of money as individual elements and talk about: Medium of Exchange(MOE), Unit of Account(UOA) & Store of Value(SOV)

At the moment I am primarily interested in Peercoin as a Store of Value (SOV). I think PPC functions well as a Store of Value because:

  • Peercoin is unique and rare, it will always be the longest proof of stake chain. The original.
  • Low inflation with sane economic model. Inflation around 1% with deflationary pressure from future use cases. With PPC I don’t need to deal with a central bank manipulating the purchasing power of my money through extreme monetary stimulus (e.g. People’s Bank of China devaluing the Yuan 8+ times in one year)
  • Peercoin is a safe haven asset, it’s borderless, reasonably private and functions as a censorship resistant immutable universal ledger; a value language
  • Peercoin is predictable, sustainable, durable and transportable

Peercoin is ultimately engineered to function as one of the best stores of value that has ever existed in the history of the world. In the future we will see other layers built on top of PPC that will be engineered to function as a better Unit of Account & Medium of Exchange.

And money is only the first app…

Future use cases will see PPC used as a backbone for a whole ecosystem of DAO’s and all the other inventions for this technology that have not been thought of yet.

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I have a dream of using Peercoin’s Blockchain + PeerAssets to prove that is possible to fully automatize the governance process of a society.

Why use paper ballot or fraudulent voting machines when you can issue tokens and let users vote directly for what they want? Why rely on politicians when you could simply let citizens move the society to where they think it should go, without middleman? What about auditions? And municipal budget? Why rely on old papers and departments full of bored (and well paid) public agents to audit/write those (more than often fraudulent) information and keep them “safe”? Couldn’t we do it in a better way? Perhaps in a decentralized, anti-fraud one?

Well, for me, this is where Peercoin and PeerAssets get in.

The Blockchain

Peercoin has one of the oldest blockchains, its a solid project, and count with devs that prefer to show the work done instead of throwing empty promises in shiny twitter “roadmap” images. This worked so far, and Peercoin is going 5 years old in August. And its getting older and better on each release. Its like wine, or whisky. How many blockchains can you trust will be here in the next five years? How will you define which will survive and which will not? Well, in Peercoin’s case, it already proved it can keep going, for five straight years, even when totally forgotten by the mainstream cryptocurrency world. It went to the pits of alt-coins hell, handled it like a boss, and went full Kratos all the way up again, how many projects showed this strength along the years?

Besides that, it also has a better way to handle network security without wasting ridiculous amounts of resources like full PoW coins (in fact, it was the first cryptocurrency to actually implement PoS). This means that Peercoin has not only a resilient blockchain, it also makes it more optimized in terms of resources consumption in order to keep running.

Oh, and there’s the nodes! Proportionally, Peercoin has an above-average quantity of nodes running across the globe. Decentralized. Less dependent on miners. Resilient. Relatively inexpensive.

With those things in mind, I couldn’t ask for a better option to “host” my assets.

PeerAssets

PeerAssets is a great protocol that is fully open and could be implemented in virtually any blockchain derived from bitcoin. This means that even, by some obscure reason, if there is a need to switch your “host” blockchain in the middle of the game, you would be able to do so without changing the protocol in which you work on. This is not true if you issue your tokens in a “token-driven” blockchain. What happens when the blockchain dies? Well, unless someone start porting the whole spaghetti code that was never made to be in other blockchain, your project dies too.

PeerAssets, being a protocol thought from the ground up as blockchain-agnostic, would be ported easily to any other blockchain available.

But hey, why use PeerAssets with other blockchains when you can use it with Peercoin today? Peercoin not only has the above advantages, but actually is maintained by the minds who worked on PeerAssets and some of its more audacious projects. How could you let it pass? I really can’t see a better set.

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Fraud can still happen in a distributed blockchain-based system if the initial distribution problem is not properly solved. Sometimes I feel fortunate to have JL/phoenix demonstrate how a master does it, completed with drama.

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Very interesting exchange

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Peercoin is ultimately engineered to function as one of the best stores of value that has ever existed in the history of the world. In the future we will see other layers built on top of PPC that will be engineered to function as a better Unit of Account & Medium of Exchange.

1 Like