Peercoin is a standalone cryptocurrency which is not commercial as Bitcoins, and other popular currencies like Ethereum or Litecoin, but it has a great chance to become one of the highest-grossing trends on this market. It’s a peer-to-peer currency that works with both proof-of-stake and proof-of-work systems. It was developed in 2012, and until now, only the experienced investors were aware of its existence.
This currency was the first to use the proof-of-stake protocol of work, saving a lot of time for those who are investing in it. That means, finding these coins in the blockchain network is not that energy-consuming as the Bitcoins, and you can do that with your home laptop, with your usual internet connection.
It’s more efficient compared to any other cryptocurrency, and according to many sources, it’s also secure and trustworthy. The blockchain is changing every day, following the trends, and according to cascadebusnews.com, those changes can reflect the real-world finance sector.
What are the main characteristics of Peercoin?
The coin owners, who are also known as stakeholders are those who can create new blocks in the network and keep it safe and secure. Every investor is also an owner of some part of the blockchain, and they are all included in the main decisions they make for everyone’s good.
Also, we should pay attention to the proof-of-stake way of working, which is an algorithm the network is using to achieve distributed consensus. Peercoins support this type of action, but also the proof-of-work. Both types are a part of creating the blocks in the chain, where the coins are located. The difference between Peercoins and Bitcoins is in one of the biggest problems that the Bitcoins have, the energy consumption. These coins are more efficient and don’t require advanced computer configuration and power supply to be mined.
When someone tries to mine Peercoins, they need to know that this currency combines both systems. First, they need to go through the standardized proof-of-work process, and then get rewarded with the coins by the proof-of-stake method. For example, when someone who is owning some amount of coins and the same person is investing in the blocks, they can be rewarded with the same percentage of all coin blocks that come from the proof-of-stake algorithm.
This process that in the Bitcoin network is known as mining, in Peercoins is named minting. In other words said, as the users are mining, they are also generating new coins available for the next miner. Currently, there are more than 26 million coins circulating around the network. The users are those who are creating the rules of the network, and that’s what makes it different than any other cryptocurrency on the market.
Peercoin allows fair distribution between the users
The whole network is built in a way that doesn’t allow a high concentration of coins in the hands of a few people. Those who are included in this process usually take care to let all those who mine to have equal chances of owning Peercoins.
If the whole network was working through the proof-of-stake way, the distribution could be a huge problem, meaning the whole supply ends in the founder’s account, and then he/she decides who will get the money. That’s why the founders decided to combine both ways together, so the proof-of-work method will ensure equal rewards to the miners, proportional to their effort and dedication.
All of these features and qualities are making the currency reliable for the miners. Bitcoin is still the most popular currency, but many of the investors and traders got bored with it, so they often decide to try something new. So, if you are interested in cryptocurrencies, but want to avoid the hype around the Bitcoins, you can try with Peercoin, so you can always be sure your savings are safe and secure, just like your personal data.
The process of getting these coins is almost similar to every other currency. You need to register to the network, go through the whole circle of mining and minting, and then keep your coins in your virtual or hardware wallet. It would be much easier for you to understand how this network works when you are a part of this community.
For Peercoin transactions, you don’t need any central authority, as other coins need. The hybrid way of mining is assuring complete anonymous actions. Also, you may hear for this currency the first time now, from this article. That’s because it’s on the 190th place on the list of the biggest cryptocurrencies on the market, but people are starting to recognize it, so the chances it will become bigger soon are great.
The difference between Bitcoin and Peercoin
As we already explained, they work similarly, but there are also a few differences, especially in time and energy-consuming. In order to mine Bitcoins, you should have a powerful computer, stable Internet, and of course, power supply, because the Blockchain consumes a lot of electricity. With the combined method of proof-of-stake and proof-of-work, Peercoin is trying to overcome this power-consuming issue, allowing all the miners to find their coins without having to invest in computers and power supplies.
Most of the trading platforms support this cryptocurrency, and you can exchange and trade them just like every other digital currency. Once you have your coins, it’s always better to store them in your crypto wallet, so you can be sure they are safe and secure all the time, until you decide to exchange or spend them.
If you decide to buy Peercoins, it’s better to consider this action as an investment, just like you would do for every other type of cryptocurrency. If you invest some amount of money today, you can expect to increase the price, but dropping is also possible. Most of the investors and traders keep their savings safe in the wallets, so they can wait for better rates, and of course, get more money for it. Today’s values are low compared to the past, but there is always hope that things will get better soon.
Nicola Holder