We take a comprehensive look at the differences between Bitcoin and Peercoin. This video touches on some of the long-term sustainability issues inherent in Bitcoin, and highlights the aspects of Peercoin that address these issues.
Download the slides here: https://docs.google.com/presentation/d/1vtHBI3ZzLRrazKfzAE1W2pOi3qxsukd7vzQNILSP-78/edit?usp=sharing
Chinese translation of the slides: https://docs.google.com/presentation/d/1aAC_KJYLRdNH8VvqhKkyIuWrMkbVQ2N96JWaS0ThGFY/edit?usp=sharing
Good questions! We recently obtained some major sponsorships for this channel, so you can expect many more videos in the future. :) We usually produce bitcoin-related videos, since that’s an area of expertise that many people are interested in. Altcoins do get some focus, as well. Peercoin is a very old cryptocurrency: it was the very first to use the Proof of Stake security model, which has shown itself to be an impressive invention.
Thank you for your reply! I am really enjoying the way you breaking all the important things in the video. Are you planning to make more of these? I am sure its super time consuming, but you have a good style. Have you looked into enigma? There are so many tokens and cryptos that its hard to cover them all. I liked the part where you explained that all proof of work mining have a potential issues down the rode with growing pools. Also, peercoin is the first of its kind that have protocol of increasing total supply by 1%?. In mho this will be more of things to come with cryptos where the supply may be adjustable, or will be programmed to increase depending on certain factors. Do you have any thought on this?
There is no official hard limit, but the mining rewards decrease in inverse proportion to the total network hash power. Effectively, this means that the supply growth gradually shrinks, approaching 1% per year (from staking rewards). So, I think Peercoin supply inflation is already pretty low, and will continue to fall over time. By the way, thanks for subscribing! :)
Only one problem you would need 400000 bitcoin to my understanding in order to make the same amount of many that you can make off of many proof of work cryptocurrency. To be fair 1% is more than most banks in the U.S and if the value on what you already have increases you can make quite a bit of money very quickly. so I would say a combination of both is possibly the smartest choice.
Pretty much Everything (software speaking) having to do with any aspect of any crypto currency is erroneously flagged as some sort of virus or malware.
This is because a few bad actors used botnets and malware for mining tiny amounts on many computers without permission. additionally, [most] computer security software providers are actually quite lazy when it comes to their methods of detecting actual malware. It's far easier and cheaper for them to simply flag all mining, wallets and other crypto-currency software as malware than it is to sift through and find the few malicious pieces of code. this leaves it on the user to ensure the source is trusted and add an exception in your AV software.
+furquizor28 Hi, I'm not sure why Norton Antivirus would detect the Peercoin software as a malware threat. I would recommend asking in the forums at https://peercointalk.org to see if other users have encountered that. It's possible that this is a false positive, or perhaps there's something going wrong.
Thanks for the question!
+Sreng Rattana Good question! The maximum supply of bitcoin is 21 million, but it will take many years to reach that level. Peercoin doesn't have a maximum supply, but the inflation rate is a good measure of how quickly the supply is growing.
+Vertigon100 Great question! Probably a coin that's not used by anyone. You can find a list of such dead coins at http://coinmarketcap.com. If the coin tokens are nearly worthless, then the corresponding transaction fees would likely be pretty much free, as well.
With Peercoin currently priced at below $1, its transaction fee is already very low, below one cent in USD terms.
+Vertigon100 If a cryptocurrency didn't have fees, it would be bloated by attackers who could send millions of meaningless spam transactions at no cost. The fee is an important part of keeping a cryptocurrency secure.
+Vertigon100 Hi Vertigon! I'm not sure what you mean by the fee. The trading fee depends on the exchange. The transaction fee of the Peercoin network is 0.01 PPC per kilobyte, which means that sending PPC from one address to another usually costs 0.01 PPC.
Hope this helps! Welcome to the community.
Though I could be wrong, I don't think the non hash cash algorithm is specifically any more likely to avoid an attack. The biggest attack differentiator is market cap -- you can't make millions of dollars by controlling the XPM blockchain (yet). If XPM and BTC traded market caps, their risks would be reversed as well.
Great video (that I ve rewatched for the 3rd time now)
Questions: what would be the benefit of a minting pool if they would be already doing what one is already doing in solo-minting? how would a peercoin minting pool work? why would it be useful for someone that has very few peercoins?
Think about how a Bitcoin mining pool allows a small miner, who can't expect to find a block on their own, to share in a proportional slice of the reward, based on the percentage of mining power contributed. A Peercoin minting pool would work in a similar way, with the same benefit. By pooling together their minting power, a group can increase their chance of minting a block, which minimizes reward variance.
Bitcoin, Peercoin or any encrypted coin goes to an end either way. Not any artificially produced digit coin is speculation. It's nothing compared with our local Digital DNA, whose support is the Human Genome. In this case THE VERY HUMAN BEING is the support, the basis and the representation of an unlimited budget. And all is under control by the very associates. All this allow us to defeat the IRS and the Bankgsters. So, let's just stop trusting all this speculative ways of producing coins artificially with every time centralized system of speculation or digit coin production. Ahh It's really annoying to listening this guy swallowing big amounts of water. Really disgusting!
Sorry for being frank, but it's disgusting for me when even in movies people eat and speak, that's something I can't stand. Apart from that thanks to your appreciation of the idea about the Digital DNA, and yes it's to be implemented in my city and province, with a total control of every neighborhood. We cannot just speculate by producing coins, in our case the DD doesn't have any value but the person to whom it represents. And there's no need of production with computers, because it works by assignment to every person.
I don't know of a way to use DNA as a monetary unit, but that's a clever idea. You could perhaps use your unique DNA signature to generate a personal Peercoin private key. That could be interesting!
Apologies for the copious water drinking. This entire video was done in one sitting, with no cuts, and it's hard to talk for 37 minutes without water! :-) I've been able to improve on this in my more recent videos.
Thanks for the comment!
I understand how 51% is a security concern, but it doesn't make much sense to do this, unless you are using money that came out of your own pocket (i.e. the government) to carry out an attack. Why would I invest so much money into buying and destroying something that cost me so much money and resources?
It is a pretty legitimate threat that a government can shut down, however. That I can buy. These pools usually pay out weekly or daily, don't they? so if the government was to shut down the main bitcoin miner, would it not divert resources to other pools once it goes offline?
Either way, thanks for the video! I am learning tons
Your analysis seems accurate, that a 51% attack could be self-harming, and that the shutdown of one pool would trigger a divergence of resources.
I'm glad you enjoyed the video! Thanks for the thoughts.
Why Peercoin? This is why:
1. Bitcoin can not implement PoS since miners will not agree to destroy their business.
2. In 2140 a country would like to keep some reserves in cryptocurrency. Will they keep it in a technology secured by hardware worth a million ounces of gold, or in a technology secured by coins worth more than all the gold in the world?
My bet is on Peercoin winning the race as a store of value :)
Very cool. I think #Peercoin minting in a #OpenTransactions #Voting -Pool will be a great incentive for exchanges / voting pools members to join a Peercoin pool.
So you might even can make a Peercoin exchange without fees, just making profit from the minting.
If you search the internet, you will find a LOT of people in late 2011 announcing the death of Bitcoin after it crashed from $35 to below $3. The arguments were quite convincing, yet they were wrong. I think Peercoin is currently going through a similar phase.
The miners are interested in finding a nonce which will create a hash with certain characteristics. Lastly, they have to find a random value that they included in the header, which makes the computed hash over that header a value below a particular target. In other words, they do not have to agree to change the protocol. Though there are a few gold diggers attempting to fill their pockets and certain projects that aren`t viable and shouldn`t be encouraged in any way. For users running a complete node, it is a fairly painless procedure to upgrade the software to the newest version. The process of locating a new block to extend the blockchain is known as mining. Proof-of-Work systems utilize cryptographic hashing algorithms to create the action of mining a block a complicated computation. Our software is totally incompatible with altcoins. Changes and modifications to how that it works need to be approved by consensus and every CPU gets a vote. To start with, it`s essential to realize that hardware wallet users control entirely their private keys. Whether you`re bullish or bearish on Bitcoin Gold, you ought not lose your coins as a result of careless mistakes! On the 1 hand, it may result in making a coin that solves all the pending issues. There`s no currency or digital asset named Bitcoin Core. Bitcoin Cash increases the range of transactions that may be processed per block. You could send any quantity of money, any place in the Earth, almost at no cost. You`ve made some great money already on the market, but you want more. For a wealthy individual, BTC`s price premium may be viewed as a plus. For someone without lots of money, BCH`s low price may look like a great deal for Bitcoin. If you have some concerns about the worth of Bitcoin after all forks, you need to be ready for a drop. The distinction is that not all of these suffer the chain split. The primary problem is Bitcoin imposes a hard limit on the magnitude of a block, the location where transaction information becomes stored. The end result is many straightforward wallets, called SPV wallets and very commonly found on your phone, will be quite confused about which chain is Bitcoin. In Bitcoin, the most important reason is known as the network effect.