Peercoin is not ‘just another Bitcoin’
Peercoin, known for its DNs is soon to beat Bitcoin at its own game and we have the PoW/PoS to thank for it. Starting just a couple of years ago, Peercoin has come a long way in its march towards victory by dynamically altering the protocol.
In reality, most cryptocurrencies that currently exist are simply imitations of Bitcoin. But if you can actually take some time out to understand Peercoin and its working, you will be able to see the dramatic changeover, making Peercoin stand on its own tern in the digital currency category.
Sunny King made sure that Peercoin existed in conjunction with the rest of the digital currency and gave sense to the term ‘backbone’. As the market matures, Bitcoin will not be the only cryptocurrency and all digital currencies coexist with each other. Peercoin has one trick up its sleeve that will help it succeed- a long term store of value. Though Peercoin isn’t the right option to buy a laptop online now, it very well looks like the cryptocurrency will soon look like the current financial markets.
Proof of Stake:
Proof of Stake and Proof of work differ significantly and remains the strong boundary between Peercoin and its contenders. Why was the proof of stake created? In case the proof of work on which the Bitcoin runs fails, the proof of stake will be able to keep the system running. Proof of work is already exposed to an array of concerns subjecting it a major hypothesis of ‘tragedy of commons’. On the other hand, Proof of Stake also has its share of demerits when operating alone. This is one reason why the Peercoin has taken a bold approach of combining PoS/PoW cryptocoin effectively.
Because of the hybrid proof of stake and proof of work, Peercoin requires electricity and mining by default. However, it is designed such that once enough number of stakes holders has been established; it will transit away from the PoW. This indicates that the electricity consumption automatically decreases.
For every transaction made, 1% is imposed. This might look like a large sum to pay in case of transacting in smaller measures. However, when compared on a larger scale, it actually turns out to be quite profiting.
Investing in Peercoin today will yield higher profit tomorrow and tomorrow is exactly where we are headed.