You may know Peercoin (PPC) by one of its other names, including PPCoin and Peer-to-Peer Coin. Whatever you call it, this is another alternative to Bitcoin that is getting a lot of attention. It’s different than Bitcoin in that it uses a combined proof-of-stake and proof-of-work system. Sunny King came up with Peercoin – based on Bitcoin – in August of 2012.
Another thing that makes Peercoin different is that there is no set amount of coins that will be produced – like with Bitcoin, Litecoin and other alternative virtual currencies currently available. Peercoin is set up to allow for an average one percent inflation each year, making it somewhat stable. It was created to be viable in the long term – i.e. it scales well as more people use it.
Peercoin started with a centralized check point to verify transactions. However, this will go away as the system becomes more stable. At that point, it will become decentralized like the other cryptocurrencies on the market today. At the same time, it is sort of decentralized now with no one person or corporation able to control coin ownership, Peercoin mining, or minting.
In November of 2013, the software being used was v.0.3. Most people believe it will become fully decentralized with the release of v.0.5 software. When that will happen is not certain, but many look for it happening sooner rather than later. At that point, Peercoin may actually surpass Bitcoin according to some. Others believe that it doesn’t have a chance of becoming more popular than Bitcoin.
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