Using proof-of-stake for chain security and proof-of-work for distribution, Peercoin is a real hybrid.
Peercoin's proof-of-stake and proof-of-work together only use a fraction of Bitcoin's power.
The current inflation rate is around 3.5% per year and dropping fast.
is decentralized and does not need a fancy board of advisors
Nope
Nah
Not a chance
"I don't comment on ICOs"
Peercoin has been using proof-of-work for coin distribution since day one. It has adaptive proof-of-work difficulty, which reduces the amount of mined coins proportional to the rising hash rate.
Proof-of-work (PoW) is not used for chain security and is for distribution purposes only.
Chain security is ensured by proof-of-stake (PoS). Proof-of-stake was invented specifically for Peercoin.
Basically proof-of-stake enables all coins that haven't been moved for 30 days or longer to mint PoS blocks. Minting coins can expect an annual return of 1% through block rewards.
Proof-of-stake minting can be done on very low end devices, like Raspberry Pis.
All those devices have to do is run the client and they will try to mint blocks by themselves.
There is no need for specialized, expensive hardware like ASIC miners to secure the chain with PoS.
Peercoin and Bitcoin are using the same SHA-256 protocol for PoW mining.
Due to the lower block rewards and lower difficulty, mining in Peercoin is more decentralized. Moreover, solo mining is still viable in Peercoin, provided you have a competitive device.
The following table compares Bitcoin and Peercoin's proof-of-work energy consumption:
|
 |
|
|---|---|---|
| Hashrate | 7,298,115 GHps | 630,236,513,481 GHps |
| Terawatthours used ¹ | 0.0001995 TWh | 17.2260 TWh |
| Compared to country ² | Gaza Strip |
Cuba |
| Equivalent CO² emissions ³ | 1,112.6027 tons | 96,080,000 tons |
| Equivalent wind turbines running ⁴ | 0.03843 | 3,318 |
When it comes to coin distribution, some mine all at once and sell them at events like ICOs. Others, like Bitcoin, have fixed supply and fixed inflation rates. Peercoin's approach is different.
Peercoin's low inflation comes from a mix of mined proof-of-work coins and minted proof-of-stake coins.
Proof-of-work inflation depends on difficulty, as mentioned above. The higher the hash rate, the less coins will be emitted.
Proof-of-stake inflation is mostly affected by the number of coins minting. It's supposed to level out around 1% per year.
Unlike in bitcoin for example, transaction fees are not rewarded to miners.
Peercoin has a fixed transaction fee of 0.01 PPC per Kilobyte, meaning that every transaction will reduce supply.
With those mechanisms, the total inflation rate dropped from around 5% in the early days to 3.5% today.
Peercoin is still under active development and there are exciting projects like PeerAssets in the pipeline.
With the recently released Peercoin version 0.6 checkpoints became optional, making the network even more decentralized.
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