Peer To Peer Coins - PeerCoin

The Bitcoin is indisputable the most important cryptocurrency today. However, since it became a mainstream idea in 2013, many specialists contested some aspects about it, such as the mining difficulty and the possibility of monopoles on mining and trading.

Some say that the bitcoin is a good idea, but it is still the first virtual currency invented, therefore there is room for improvements. Peer Coins were among the first cryptocurrencies made on the same script, meaning that those two coins share many characteristics, but they also come with differences. Let’s compare the Bitcoin with its three years younger follower, the PeerCoin.

Peer Coin uses the proof-of-stake mining system that allows dividing the blockchain of Peercoins in smaller blocks, which are easier to mine and obtain. The Peercoin is managed by the team that invented it, so it is not an open source concept, like the bitcoin. This is a little worrying, as the developers might have the possibility to manipulate it. On the other hand, what is the use of that? While the number of Bitcoins is limited to 21 million (which is expected to be reached by 2040), there is no limit for how many peercoins can be generated. This system was contested by specialists at the beginning, as it is a perquisite for inflation, which is practically impossible for Bitcoins. Time showed that inflation is even required for cryptocurrencies, as the opposite phenomenon, deflation, can be more dangerous.

Another interesting aspect about peercoins is the method used to calculate difficulty. While in the case of bitcoins, the difficulty grows once every 2016 blocks, for peercoins, this is calculated considering the number of miners. This means that the same old computer can be just as effective in mining peercoins over years, while for bitcoins, more performing miners are required. Peercoin comes with a default “inflation” of 1% per year, which is created by “destroying” the commissions of transactions. The inflation makes the peercoin to look alike real currencies, which is an advantage on the long term.

Well, there are also disadvantages: a simpler mining process means less security, and the Peercoin network was attacked many times. If you want to mine peercoins, you should compare the mining efficiency with the one of mining other cryptos.Coinwarz is the perfect website where you can find useful information about mining eficiency. You can also check our category with crypto miners, where you might find some ASICs that can mine bitcoins, litecoins and peercoins at the same time.

Peercoin is only one of the numerous cryptocurrencies appeared during the latest years. For now, it is in a “dormant” state, meaning that it only follows the direction given by bitcoins on exchange charts. On the other hand, considering the heavy contestations of bitcoiners about the BTC, which claim that mining monopole and deflation could destroy it, the peercoin might become the perfect alternative, especially because it prevents those two problems, in an effective and profitable manner.

source: http://www.cryptopips.com/mining/peer-peer-coins/

Peer To Peer Coins - PeerCoin