Peercoin is another recent member of the Cryptocurrency group that is in many aspects just like Bitcoin. It has taken the same model of the Bitcoin, but it operates in a more simplified way compared to others such as NXT and Ethereum. Here is a complete review of Peercoin and everything you need to know about Peercoin.
What is Peercoin?
What exactly is Peercoin?
Peercoin, also abbreviated PPcoin, is a peer-to-peer tier Cryptocurrency that uses proof-of-work and proof-of-stake systems. It was founded in 2012 by Sunny King and Scott Nadal. Though Nadal’s involvement declined by the close of 2013, King has been consistent and keeps growing the blockchain from one level to another.
Peercoin was inspired by the design and operations of Bitcoin. This made the founders to adopt and apply most of the Bitcoin’s source codes as well as technical implementation.
Today, Peercoin has grown and become one of the largest Cryptocurrency by capitalization. Unlike other cryptocurrencies that have strict limitations to their coins, Peercoin does not have a limit. However, it is ultimately expected to hit inflation of one percent.
The main objective of establishing Peercoin was to address the emerging sustainability concerns in other cryptocurrencies. Though some people who are extra critical of cryptocurrencies applications have remained skeptical about the effectiveness of the sustainability model (not placing caps) on the coins released by Peercoin blockchain, it appears to have gained some ground in the recent past.
How does Peercoin work?
All the transactions are handled by the Peercoin’s peer-to-peer network through the issuance of SHA-256. The proof of work scheme issues coins when a hash value that is small enough appears on the network. At this point, a transaction is confirmed and added into the shared blockchain. The process of getting these hashes and releasing new blocks in Peercoin is referred as mining.
Peercoin is traded for Bitcoins, other cryptocurrencies, and even fiat currencies. This takes place mainly in online exchanges. All the transactions done on Peercoin are irreversible.
Payments in Peercoin system are made to provided addresses located on digital signatures. These are special strings created using 34 digit codes. Note that unlike other cryptocurrencies, users on Peercoin can create as many addresses as they want. Many people prefer to use only one address for one transaction to maintain high anonymity.
When transactions are initiated and confirmed, they are recorded in the blockchain ledger by the user. This takes about 10 minutes. Every time that a hash value is picked by the system, it will be considered complete after 6 minutes or 60 minutes. This is a lot of time considering that other cryptocurrencies can now complete transactions within seconds.
To create new coins in Peercoin, you can either Mint or Mine. Mining requires the application of SHA-256 hashing algorithm for securing the network. On the other hand, minting involves getting rewards that are proportionate to the number of coins that a user holds. All users get 1% of the total coins they hold every year. However, plans are under way to scrap the reward system and only allow minting.
The main Peercoin features
This is the platform’s major distributing feature. It uses a combination of proof-of-work and proof-of-stake system to address major vulnerabilities. Unlike in Bitcoin where risks of attacks result from the monopoly in the mining share, Peercoin uses the proof-of-stake that makes monopoly very expensive and unrealistic.
The Peercoin network applies the SHA-256 hashing algorithm. Every time that the network increases 16 times, the proof-of-work rewards for the block is cut by half.
Peercoin utilizes a central broadcast checkpointing model. Just like Bitcoin, Peercoin founders concluded that the central model could still work well with the decentralized nodes to achieve the core objective.
Pros of using Peercoin
- Unlike other cryptocurrencies, Peercoin is relatively cheap. If you are looking forward to investing in cheaper and lower risk cryptocurrencies, Peercoin is no doubt a good point to start.
- Because of its inexpensive nature, it is considered closer to the fiat currencies. This means that more people can easily join and trade in rates near the fiat currencies.
- By adopting a hybrid model of proof-of-work and proof-of-stake, Peercoin has managed to avoid key security gaps that make other cryptocurrencies such as Bitcoin high-risk platforms.
- Though relatively new compared to other older cryptocurrencies, Peercoin market share has continued to grow and become one of the top platforms. This makes it one of the highly potential cryptocurrencies to consider.
Major demerits of Peercoin
- Unlike other cryptocurrencies that work on the platform of enhancing the complexities of their platforms, Peercoin appears committed to keeping it simple. This makes it easier to get infiltrated by intruders.
- Peercoin is very volatile. When compared to other cryptocurrencies such as Bitcoin, the Peercoin is more volatile, a factor that greatly lowers its value.
- Storage has become a serious problem for Peercoin, and a solution does not appear to be forthcoming. This could ultimately work against the Cryptocurrency’s positive gains.
- The transaction time in Peercoin takes a lot of time. This is a great discouragement for especially to users who want to trade more on the network.
Where to Buy and Sell Peercoin in Australia?
Crypto Currency for Fun recommends buying Peercoin at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Peercoin and they offer Instant Delivery or your coins right into your account.
As the world of cryptocurrencies keeps growing at a very fast rate, new entrants like Peercoin have demonstrated their commitment to winning an even bigger market share. While the key cons of this platform especially the long transaction time remain a key undoing for the platform, its potential cannot be underestimated.