Peercoin Cryptocurrency Review
What is Peercoin?
Peercoin uses ‘Proof of Stake’ advantages using their own blockchain for enhancing security, decentralization and electricity efficiency.
It is a flourishing member of cryptocurrency family. Often it is called the third coin after bitcoin and litecoin.
Peercoin started its journey in August 2012 holding the hands of pseudonymous Sunny King and Scott Nadal. Sunny King is also the creator of Primecoin. During November 2013, Scott Nadal left his share and Sunny King became the core developer of peercoin. Peercoin followed the shadow of bitcoin and shared a part of the source code and technical properties.
Unlike some renowned coins, peercoin does not have any limit of the number of coins to be created but has been structured in such a way that it eventually experiences an annual inflation of 1% and this property of peercoin ensures the issue of long-term scalability.
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 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.
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.
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 future.