What is Peercoin?
Peercoin is a digital currency similar to Bitcoin
with a key
differences. Peercoin is based on an August 2012 paper which listed the
authors as Scott Nadal and Sunny King. Sunny King, who also created
Primecoin, is a pseudonym.
Peercoin and Bitcoin
Peercoin was inspired by Bitcoin, and it shares much of the source code
and technical implementation of Bitcoin. Peercoin's major
distinguishing feature is that it uses proof-of-stake/proof-of-work
Most cryptocoin mining requires specialized hardware, but Peercoin
minting can be done on any computer. Minting is energy-efficient,
because it is based on the Peercoins you hold, rather than on your
Amount of coins
Peercoin does not have a hard limit on the number of possible coins,
but is designed to eventually attain an annual inflation rate of 1%.
Different hashing algorithm
Peercoin's proof-of-stake system was developed to address the high
energy consumption of Bitcoin. The proof-of-stake system was
designed to address vulnerabilities that could occur in a pure
proof-of-work system. With Bitcoin, for example, there is a risk of
attacks resulting from a monopoly on mining share. As Proof-of-stake
becomes the primary source of coin generation, energy consumption
(relative to market cap) decreases over time.