PoS Creator Sunny King: Blockchain Needs To Be Easier ...

Peercoin Is The Backbone Of The Cryptocurrencies

Source: http://cointrader.org/peercoin-proof-of-stake-and-bitcoin/
Peercoin Isn’t Just Another Bitcoin Clone..
Regardless of your opinion of Peercoin, if you have one at all, it definitely sets it’s self apart from Bitcoin by incorporating key changes into the protocol.
In reality, most crypto-coins are an imitation of Bitcoin in a fundamental fashion, but once you take the time to understand precisely how Peercoin has differentiated itself to be positioned within the crypto market – You’ll realize just how dramatically different it is, and that it very much stands on it’s own in terms of innovation contributed to this digital currency evolution.
It seems obvious by now that there will be far more than one single crytpocurrency around for quite some time. As the market matures, they’ll all mold to coexist with each other – This, of course, remains to be seen, but either way, Peercoin is designed to play a specific role in a developed future ecosystem of cryptocurrency, and if it succeeds in that role it could become better than Bitcoin at one important function – a long term store of value.
And this is where many confuse Peercoin’s future and potential, as it’s often cited that Peercoin doesn’t function well for day-to-day transactions – and therefore isn’t of much use a cryptocurrency. Or that’s how the narrative goes, assuming a “one crypto take all” scenario. While it’s true that purchasing a new laptop computer on Overstock.com isn’t what Peercoin is best suited for, and that’s intentional in the design, it’s because it is intended to be used in tandem with other coins that’s fee structure and transaction times are far better suited to smaller, more frequent transactions.
In designing Peercoin, SunnyKing assumes that the crypto landscape will indeed resemble current financial markets. In that multiple financial instrument will differentiate themselves enough through various mechanisms such as interest rates and fees, among other things, in order to provide enough value on their own merit to justify a place in the markets for themselves.
If this indeed turns out to be the case, then Sunny King’s foresight could prove ingenious and Peercoin could very well adapt to become the “backbone” of cryptocurrency. In effect, Peercoin or “PPC” looks to be the bonds and treasuries market of the crypto world.
At this point, we’ll remind you that Peercoin’s poor suitability for frequent transactions was intentional, and could potentially provide some much needed stability to the cryptocurrency markets. It is truly intended for use as a long term store of value. Admittedly, it does seem somewhat puzzling at first that transaction fees are set to operate in the manner that they do.. but after seeing the bigger picture, and how the fee works in cooperation with interest that incurs simply for holding your Peercoins, it all starts to make a bit more sense.
For one, the fee mechanism could potentially calm much of the volatility seen in Bitcoin. This is huge, and one of the main reasons Bitcoin hasn’t been as widely accepted as should be at this point. Market volatility has been an ongoing trait of the crypto markets and Peercoin looks to be the solution that’s needed. The transaction fee combined with the slightly inflationary nature of PPC could simultaneously provide deterrent of transactions, and incentive for holding, providing the stable, less volatile currency that could actually serve as the “backbone” of the market.
In short, the transaction fees only seem out of place before you realize exactly what Peercoin is attempting to become. A mechanism that increases the currencies stability is rather desirable once you understand that PPC is meant to serve as a type of “buffer” for the entire crypto ecosystem – and that’s exactly what the “high” fee does.
It also means that if PPC ever soars to $10,000 (only exploring hypotheticals, here..) then buying $100 worth of PPC would do nothing more than cover your transaction fee. This creates an interesting dynamic and fairly high barrier to entry that even further demonstrates Peercoin’s intent to serve as a long-term store of value, rather than a transfer of value.
We’re not arguing that Peercoin’s slightly inflationary nature is either a positive or negative feature for a cryptocurrency. Only that inflation isn’t inherently a bad thing as many may assume. It’s centralization that enables the abuse and manipulation of inflation that is inherently a problem. The bottom line is PPC’s inflation rate is purely a function of the holder of the coins receiving that 1% interest for securing the network. This is good inflation, and one of Peercoin’s many strong suits. So while the money supply grows.. just like dollars, the main difference is the fact that your stake in said money supply grows, as well. So there is inflation in the money supply, but no purchasing power whatsoever is lost by the coin holders.
To start, something that many don’t realize is that Peercoin is very literally an evolution of Bitcoin. Proof of stake was born out of concerns that a full proof of work system, such as the one Bitcoin utilizes, could be fundamentally flawed in that miners won’t have sufficient incentive to keep the network secure when block rewards inevitably diminish. This unknown hypothetical has become known in Bitcoin circles as “The Tragedy of the Commons”, and is one of the major long-term problems with Bitcoin.
That said, a fully proof of stake system has it’s potential detriments, as well. Mainly, the initial distribution of the coin supply is rather difficult if you take mining out of the equation. There are full proof of stake coins such as Nxtcoin that have attempted to accomplish the difficulty of initial distribution of a full proof of stake coin by simply selling the initial coins in an ad hock ipo of sorts. We’ll talk more about this, and Nxt, in general, in an upcoming article, but for now..
Peercoin takes the approach of combining the “best of both worlds”, and holds the distinction of being the first hybrid PoS/PoW crypto coin. Peercoin started off being mined just like Bitcoin, then will gradually transition to a mostly proof of stake platform. This allows PPC the considerable benefits of PoS while still maintaining an initial distribution that’s widely considered fair and acceptable for a decentralized digital currency.
Does energy consumption matter?
We certainly can’t definitively answer that, as it seems to be a matter of perspective more than anything else. But it does seem rather inevitable that it will eventually become a heated issue. Whether it should be or not is up for debate and entirely irrelevant to those will most likely use it as a talking point to grab ratings, or page views. It would only seem to align with the current political climate, that Peercoin’s ability to claim itself to be the “green” and “sustainable” coin will indeed turn out to be a considerable asset.
Recently, Forbes reported that the Bitcoin network currently costs north of 15 million dollars a day, and stories like this are likely to become more and more prevalent as the mining network gets larger, and thus consumes vastly more electricity and resources. The movement against Bitcoin energy consumption is only just getting started, and since Peercoin effectively alleviates the energy problem all together – things could get interesting.
While, due to it’s hybrid proof of work and proof of stake design, Peercoin currently does require mining and electricity, but it’s designed to transition away from PoW (requires mining) completely, as soon as there are enough stake holders to secure the network with a fully PoS system. That means that the electricty bill for PPC will gradually decrease, while BTC’s bill will only continue to climb to potentially absurd levels.
ASIC mining end result is Bitcoin centralization.
Sad but true. When Satoshi Nakamoto created Bitcoin, it’s likely he didn’t anticipate the arrival of ASIC computers designed specifically for mining. ASICS have simply changed the game, and now BTC mining is prohibitively expensive and is becoming more centralized everyday.
Mining pools have started to garner so much of the hashing power that they could potentially pose a threat to the network. This is no empty, down the road threat either. A quick check of Reddit will produce multiple current accounts of concerns of the largest BTC mining pools coming dangerously close to controlling 51% of the hashing power.
If you’re not familiar, if any one entity gains 51% of the BTC network hashing power, then it can attack the network and cause unknown damage. Whether one of these attacks will ever actually occur or not is unsure, but the fact that the mining aspect of Bitcoin puts control of the value of the network into the hands of a few pools, and makes it susceptible to centralization, is a real cause for concern. Because if history is to serve as an example, then if it can be centralized, then it will be.
Sunny King, the Peercoin designer, has stated that the Fee amount is not fixed. If the value of Peercoin goes higher he will consider lowering the Fee. He states that the Fee should be high enough to prohibit spam dust but low enough to not inhibit legitimate use.
Some initial inflation is necessary to create Peercoin in the beginning, but in the long term inflation is not necessary.
Peercoin is not inflationary or deflationary. Peercoin is balanced. It is true that there is a 1% reward for minting Proof-of-Stake blocks but this gain is balanced by the .01 PPC Transaction Fee loss per 1K of transactions. The Transaction Fee is destroyed. So, Peercoin is created and destroyed; there is a balance of creation and destruction in the long run.
Thus, the cost to the Peercoin network per Transaction is near zero. This will allow Peercoin network security to remain strong indefinitely into the future.
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Sunny King is a pseudonymous developer known for being the creator of Proof of Stake (PoS) consensus algorithm for cryptocurrencies. In 2012, King was the first to introduce a PoS-based cryptocurrency, Peercoin. King has subsequently created Primecoin in 2013. The latest project by King, Virtual Economy Era (VEE), was announced in January 2018. Sunny King. King developed PoS as an alternative means of achieving consensus to Proof-of-Work (PoW). Simply put, the creator of a new block is selected, usually – but not always – based on the number of tokens they hold. Rather than relying on energy-intensive mining rigs, King considered PoS to be a far more practical way to scale ... Have you ever heard of Sunny King?He was the creator of PoS, a technology based on the supernode proof of stake, which is basically a consensus algorithm that the company is running.According to them, it has a success rate of 99.9% and can be able to produce a new block every four seconds. The Bitcoin Foundation is great, but it is a political bullseye for Bitcoin. Yes, ultimately they aren't Bitcoin, but they have enough public pull that it damages Bitcoin every time one of them does something exceedingly stupid. That's irrelevant. level 2. Original Poster 1 point · 6 years ago. I don't think it is entirely irrelevant because it would bring a lot of attention to Peercoin. Both ... The Supernode Proof of Stake (SPoS) consensus is a fresh innovation by Sunny King. The V Systems operates upon this major pillar. The following are its key features: Stable and secure: Performance-oriented consensus mechanism that ensures stable and fair development of the blockchain ecosystem, and is practically resistant to 51% attack.

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