Peercoin was launched in 2013. The main aim of Peercoin was to reduce the amount of electrical energy which is used by the Bitcoin miners. This is the reason why Peercoin actually took a hybrid approach.
Peercoin also uses the blockchain technology. However, the ledger is publicly accessible. As a result, the transparency is more. It is easy to use a system of transfer. Moreover, the code is an entirely open source in nature. As a result, the development of applications related to the Peercoin blockchain is gaining more and more impetus.
Energy consumption is why cryptocurrency’s:
When you look at the blockchain and the proof of work concept, you will realize that the energy consumption in order to verify the transactions is significant. Also, there are multiple GPU’s in most of the cryptocurrency mining rigs. As a result, they actually consume a significant amount of power. Each and every time a block is verified, the miners are able to earn a reward in the form of the cryptocurrency. However, in order to verify the block, the amount of electricity which is being consumed is actually on the higher side. As a result, the consumption of electricity is consistently increasing. Proof-of-work algorithms are actually beneficial for the blockchain technology. However, when you look at the amount of electricity which is consumed due to search algorithms, it is immense. That is why there is an alternative which was needed. As a result, the alternative was developed and is used in many of the blockchains currently.
Alternative to proof of work:
The proof of stake concept was developed in 2012. It was slated to replace the proof of work concept. As a result, the transactions can be validated without spending a lot of electrical power. That is why powered machines would not be used by the cryptocurrency minors. As a result, it will become easier to save the amount of electricity which is being consumed for running the blockchain as well.
According to this new algorithm, the holders which are having more coins have a better chance of getting chosen to add a new block. As a result, they will also be able to collect the rewards of mining the cryptocurrencies.
Hybrid approach by Peercoin:
Peercoin developed a hybrid approach. As a result, it uses this hybrid approach which is unique only to this cryptocurrency. Also, as it is a hybrid approach, the 51% attack cannot happen on the blockchain of Bitcoin.
Advantages of Peercoin:
The advantages of Peercoin are plenty like:
- The number of Peercoins is limited to 21 million.
- A new block is generated every 7 minutes in Peercoin.
- Peercoin fees are defined by the protocol and therefore hardly ever increase.
As you can see, the advantages of Peercoin are plenty. As a result, it is important to take into account these advantages and thereafter only you will be able to decide whether Peercoin is useful or not. If you’re looking to invest in a cryptocurrency which is technically advanced, you should definitely look at Peercoin. Keyword: Peercoin, proof of stake, peercoin mining, buy peercoin, peercoin wallet, peercoin price, best peercoin wallet, peercoin stock, peercoin exchange, peercoin news