peercoin

Peercoin (PPC)

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What is Peercoin?

Peercoin is a cryptocurrency that was launched in 2012 as one of the earliest alternative digital currencies, inspired by Bitcoin. It was created by Sunny King (a pseudonym) and is designed to address some of the perceived limitations of Bitcoin, such as energy consumption and long-term sustainability.

Detailes

Peercoin is based on a hybrid proof-of-stake (PoS) and proof-of-work (PoW) consensus mechanism. While Bitcoin relies solely on PoW, which requires substantial computational power and energy consumption, Peercoin introduces a PoS component to reduce the environmental impact and increase energy efficiency. In Peercoin’s PoS system, users can “mint” new coins by holding Peercoin in their wallet, with the probability of minting new coins being proportional to the number of coins held.

The introduction of PoS in Peercoin also aims to address the issue of mining centralization. With PoW-based cryptocurrencies like Bitcoin, mining power tends to concentrate in the hands of those with the most powerful mining equipment. In Peercoin, the PoS component encourages users to hold coins rather than compete for mining power, potentially leading to a more decentralized network.

Peercoin has a maximum coin supply of 2 billion coins, and its blockchain allows for transaction confirmations to occur more quickly compared to Bitcoin. The project aims to achieve long-term sustainability by reducing the block reward over time, which helps control inflation and encourages users to hold coins for a longer duration.

History of Price Fluctuation

In early 2013, the initial price of each coin was roaming around $0.40 US dollars. Within a few months, it suddenly fell down to $0.12-$0.16 USD, making the customers disappointed. Suddenly in November 2013, the price took a U-turn and reached $7.3 US dollars per coin that ultimately made a market cap of $153, 266, 894. Those customers felt lucky who exchanged a single bitcoin for 10,000 Peercoin because they had $70,000 USD earned from a single bitcoin at that time.

After that, the price was falling down continuously throughout the year 2014 and reached around $0.42 USD in January 2015. In July, the price spiked up to $0.76 USD that showed hope to the investors.

Transaction and Coin Creation Process

Peercoin uses SHA-256, the proof-of-work scheme, by which it creates a peer-to-peer network of the users. Transactions are conducted to the addresses, which are actually combinations of 34 letters and numbers starting with the letter P. Addresses are based on digital signatures and each address is used for one purpose only that makes it easier to identify the sender.

Details of transactions are preserved in the blockchain of Peercoin. A new block of transactions is added to the chain every 10 minutes, and a transaction is usually counted complete after 6 blocks. But, smaller transactions need fewer blocks to be considered secured.

Fresh coins are created in two pathways, one is mining and another is minting. Mining is a process of finding new blocks by the miners that ultimately gives birth to new coins whereas, minting is a process of rewarding the users and is proportional to the number of coins they possess.

Features of Peercoin

Peercoin is operated by a hybrid proof-of-stake/proof-of-work system. It reduces the possibility of monopoly in the mining sector, which is inevitably invited by the proof-of-work system when it works singly.

Proof-of-stake system ensures a regulated inflation which is 1% annually, though there is no coin limit.  It removes variable and optional transaction fees and keeps it constant at a protocol level, which is currently 0.01 PPC/Kb. Thus, the possibility of inflation occurrence is minimized by deflating money supply. Self-regulation of transactions volume and avoiding network spam is ensured.

Total Circulation

As of January 22, 2018, 06:19:00 UTC, the total amount circulated in the market is 24, 568, 710 PPC and the total market cap is $139, 548, 265 USD. Therefore, each coin is available for 5.68 USD.

Conclusion

Peercoin has experienced a lot of ups and downs throughout the journey. Recently it is passing a good time. Let us hope that it will continue the current pace and snatch success in the future.