Finance:Peercoin

From HandWiki

Peercoin, also known as Peer-to-Peer Coin, PP Coin, or PPC, is a cryptocurrency utilizing both proof-of-stake and proof-of-work systems.[1][2] It is notable as the first cryptocurrency to implement the proof-of-stake consensus mechanism.[3]

History

Peercoin is based on an August 2012[4] paper that listed the authors as Scott Nadal and Sunny King. King, who also created Primecoin, is a pseudonym.[5]


Economics

Peercoin uses both the proof-of-work and proof-of-stake algorithms.[6] Both are used to spread the distribution of new coins. During its primary years, Peercoin relied heavily on PoW, although there has now been a transition to PoS.[7] Proof-of-stake is used to secure the network: The chain with longest PoS coin age wins in case of a blockchain split-up.

To target a global 1% annual inflation rate, individual stakes typically receive a 3 - 5% annual reward, as only a minority of coins are actively staked.[8] This reward is based on a dynamic portion (75% of the reward) and a static portion (25% of the reward).[9] The dynamic portion of the reward for an individual stake is based on the number of coins, their unspent age, and degree of global staking participation. Stake-for-Stake, periods of low (high) global staking participation will result in a higher (lower) dynamic reward. The static portion of the reward is based on the fraction of the existing total coin supply minted on average in a year, and is awarded regardless of stake size. As of December 2024, the static reward for a proof-of-stake block is approximately 1.4 PPC.[10]

A transaction fee prevents spam and is burned (instead of being collected by a miner), benefiting the overall network.[11]

References

  1. ↑ "Wary of Bitcoin? A guide to some other cryptocurrencies". 2013-05-11. https://arstechnica.com/business/2013/05/wary-of-bitcoin-a-guide-to-some-other-cryptocurrencies/2/. 
  2. ↑ Zhao, Wenbing; Yang, Shunkun; Luo, Xiong; Zhou, Jiong (26 March 2021). "On PeerCoin Proof of Stake for Blockchain Consensus". ACM. pp. 129–134. doi:10.1145/3460537.3460547. 
  3. ↑ Saleh, Fahad (2021-03-01). "Blockchain without Waste: Proof-of-Stake". The Review of Financial Studies 34 (3): 1156–1190. doi:10.1093/rfs/hhaa075. ISSN 0893-9454. 
  4. ↑ Daly, Lyle. "Peercoin: Defined and Explained" (in en). https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/peercoin/. 
  5. ↑ Popper, Nathaniel (24 November 2013). "In Bitcoin's orbit: Rival virtual currencies vie for acceptance". The New York Times. https://dealbook.nytimes.com/2013/11/24/in-bitcoins-orbit-rival-virtual-currencies-vie-for-acceptance/. 
  6. ↑ Frankenfield, Jake. "Peercoin Definition". https://www.investopedia.com/terms/p/peercoin.asp. 
  7. ↑ Daly, Lyle. "What is Peercoin?". https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/peercoin/. 
  8. ↑ Daly, Lyle. "Minters Get Richer?". https://www.peercoin.net/blog/minters-get-richer/. 
  9. ↑ Daly, Lyle. "Peercoin Inflation Adjustment". https://www.peercoin.net/blog/peercoin-inflation-adjustment/. 
  10. ↑ "Static reward". https://charts.peercoinexplorer.net/staticreward/2/linear/default. 
  11. ↑ Nagalim (14 March 2021). "A Smarter Fee". https://www.peercoin.net/blog/a-smarter-fee/. 
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