Peercoin was launched in 2012, making it one of the first blockchains to be released. This introduced a number of new innovations that substantially improved the designs of other blockchain protocols that existed at the time, most notably Bitcoin proof-of-work. Peercoin’s alternative to proof-of-work, proof-of-stake, remains unrivaled to this day as a blockchain consensus protocol and one that is achieving more mainstream adoption every year.
For new investors, understanding why Peercoin’s blockchain technology is superior first requires an understanding of blockchain in general, as well as understanding Peercoin’s main competitor, Bitcoin. Unlike Bitcoin which can only be mined using the “Proof of Work” principle, an altcoin called Peercoin can also be mined using the “Proof of Stake” principle. Peercoin, commonly abbreviated as PPC, is designed on the principle of one percent inflation, with the aim of maintaining stability and long-term prospects. This is why there is no maximum limit on the number of PPC that can be mined.
Peercoin (PPC) is a crypto asset that uses a proof of stake algorithm to enable faster blockchains and prevent centralization. Instead of transactions being carried out by a limited group of miners, mining is distributed across the computers of all PPC users. In exchange for making their computing power available to the PPC network, users are rewarded with newly created PPC at 1% of the amount of PPC they own.
This altcoin was one of the first to introduce a proof-of-stake system, which differentiates it from bitcoin which uses proof of work to prioritize miners.
The proof-of-stake system used by PPC prefers its use as a store of value rather than currency. A flat fee of 0.01 PPC for each kilobyte of data transacted in a PPC transaction is automatically charged by the PPC system. The purpose of these fees is to prevent the combined computing power of the PPC network from being wasted on very small transactions.