Currency Ticker: PPC
Alternative name: PPCoin
What is Peercoin?
Peercoin is a hybrid Proof of Work / Proof of Stake cryptocurrency, meaning that both systems are used. It is a fork of Bitcoin, meaning that it re-using a large part of Bitcoin’s code; this includes Bitcoin’s SHA-256 Proof of Work algorithm.
Peercoin is the basis of the NuShares system which is used to create pegged assets such as NuBits, which are designed to always be worth $1.
The number of Peercoin in circulation gradually increases over time: In addition to a typical PoW emission curve (inflation steadily decreasing over time to zero) PPC features a 1% annual inflation rate as a result of coins created through PoS minting.
PPC advantages: What is it Famous For?
It was the first to introduce a Proof of Stake (PoS) system designed to overcome some of the limitations association with Proof of Work (PoW) – such as the infamous ‘51% attack’ which could be made possible by the tendency for mining centralization within PoW systems, and could result in a powerful group of miners being able to take control of the network. Proof of Stake rewards node operators according to the number of coins they own rather than the amount of computational work they perform; this means that in order to attack the network you would have to be the majority stakeholder – effectively meaning that you would be attacking yourself.
Proof of Stake also uses a lot less computational power compared to Proof of Work. This means that less electricity must be used and it is more efficient.
Peercoin is also known for having had a ‘fair launch’ with no pre-mine, instamine or ICO.
PPC Disadvantages: What Criticisms Have Been Levelled At It?
Peercoin uses a centralized checkpointing system for security, and has therefore been criticized by some as being less decentralized than Bitcoin and other cryptocurrencies. As of version 2.0, however, the developers have begun the process of weakening the role of centralized checkpointing, with the ultimate goal of removing it altogether.
Peercoin was originally released in 2012 by Scott Nadal and Sunny King.