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The topic of this article may not meet Wikipedia’s general notability guideline. Peercoin tokens are issued by stakeholders while the currency is regulated by a central authority through checkpointing. Peercoin, also known as PPCoin or PPC, is a peer-to-peer cryptocurrency utilizing both proof-of-stake and proof-of-work systems. Peercoin is based on an August 2012 paper which listed the authors as Scott Nadal and Sunny King.
Sunny King, who also created Primecoin, is a pseudonym. Nadal’s involvement had diminished by November 2013, leaving King as Peercoin’s sole core developer. Peercoin was inspired by bitcoin, and it shares much of the source code and technical implementation of bitcoin. There is a deflationary aspect to Peercoin as the transaction fee of 0. Payments in the Peercoin network are made to addresses, which are based on digital signatures. They are strings of 34 numbers and letters which always begin with the letter P.
One can create as many addresses as needed without spending any Peercoins. It is quite common to use one address for one purpose only which makes it easy to see who actually sent the Peercoins. 6 blocks, or 60 minutes, though for smaller transactions, fewer than 6 blocks may be needed for adequate security. Mining uses the SHA-256 algorithm to directly secure the network. There are long term plans to reduce gradually the amount of mining and to rely more on minting. This is to create a fair distribution and could lead to an increase in the reward from minting. The proof-of-stake system was designed to address vulnerabilities that could occur in a pure proof-of-work system.
With bitcoin, for example, there is a risk of attacks resulting from a monopoly on mining share. The whole network uses the SHA-256 Algorithm. For each 16 times increase in the network, the proof-of-work block reward is halved. In July 2016 the Bitcoin mining reward halved causing a notable minority of miners to switch to mining Peercoin for better profitability. Peercoin’s proof-of-stake system was developed to address the high energy consumption of bitcoin. 150,000 USD per day in power consumption costs.
This is a combined result of the proof-of-stake minting process, and scaling of mining difficulty with popularity. The transaction fee is fixed at the protocol level and does not go to miners but is destroyed instead. This allows the creation of DAOs and DACs on the Peercoin blockchain, complete with dividend functionality as well as shareholder voting. It will form algorithmically chosen indices and baskets of cryptocurrencies and issue assets corresponding to the value of these baskets. According to the original paper, Peercoin uses a centrally broadcast checkpoint mechanism.