Peercoin

Peercoin (PPC) is a cryptocurrency derived from Bitcoin. It is an open source and peer-to-peer digital currency. It implements the Proof of Stake (PoS) consensus as its security model and part of its minting process along with the Proof of Work (PoW) consensus.

Sunny King and Scott Nadal first introduced Peercoin in August 2012. Zachary Burt founded Peercoin in July 2013. The blockchain is known as an early pioneer and creator of proof-of-stake consensus protocols. Proof-of-stake allows Peercoin to avoid electricity consumption costs, and allows any network to to participate with the security processes. Coin owners are stakeholders, and are responsible for producing new blocks, securing the chain, and deciding future implementations through protocol voting.

Voting protocols are carried out through proof-of-stake minting. Stakeholders are incentivized to vote as each newly minted block rewards stakeholders with new PPC and another vote. This means the blockchain is governed only by its users, making it decentralized and democratic, and is globally secured.

To avoid chain bloating, the blockchain's base layer focuses on development of modularity, and features such as tokens and smart contracts are developed on the secondary layer and exist on top of Peercoin.

Introduction to Peercoin.

With the same cryptographic hash function as Bitcoin (SHA-256), Peercoin is 100 times more energy efficient. Transactions in the Peercoin network are faster and cheaper. In 2014 and 2015, however, there were many other interesting innovations in the cryptocurrency market that outperformed Peercoin in a number of important properties. In contrast to DASH, Peercoin could not offer anonymity and the transactions in Dogecoin were even faster and cheaper than those of Peercoin. PoS technology ceased to be an advantage of Peercoin and PoS continued to spread to other cryptocurrencies. The interest of the users drew it to the side of the minings on the CPUs and GPUs, then to the side of the Smart Contracts and PPC began to get a little forgotten.

The Peercoin Team believes that adapting blockchains for wide scale use only through on-chain transactions will negatively affect the decentralization level and security of the network over time, therefore they choose to develop the Peercoin blockchain as a base layer settlement network with a sole focus on securing all forms of value recorded into the chain. This can be accomplished through Peercoin's philosophy of preserving and maximizing decentralization (which increases security) by developing the majority of features and technologies on top of the blockchain, rather than directly into the blockchain protocol itself.

Thus the Peercoin Team focuses on developing second layer protocols and sub-networks that can interact with the base layer blockchain to adapt it for wide scale use and improve functionality such as tokens, smart contracts and high speed low cost transaction processing. In this way, Peercoin will act as a secure and censorship resistant base layer for the future blockchain connected world.