Author Topic: Peercoins FAQ  (Read 179109 times)

Offline FuzzyBear

  • Forum Operator
  • Administrator
  • No life but Peercoin!!
  • *****
  • Posts: 1339
  • Karma: +77/-0
  • Referrals: 14
    • View Profile
    • Escrow PPC trades 1% fee
Peercoins FAQ
« on: March 20, 2013, 07:01:59 pm »
Q: What's the Difference between Peercoin and Bitcoin?

A: Peercoin is a crypto-currency project forked from Bitcoin and we aim to achieve energy-efficiency and keep as much as possible the original Bitcoin's preferable properties.

Q: What's Stake or Proof-of-Stake?

A: Stake/Proof-of-Stake is term referring to the use of currency itself (ownership) to achieve certain goals. In Peercoin proof-of-stake is used to provide minting and transaction processing in place of proof-of-work. Please refer to our design paper for details of this approach and our implementation.
The 'stake' field in the getinfo output shows the currency amount you currently staked to protect the network. This amount is subject to the holding period of 520-block maturity window before you can use it again (it would return to your balance once matured).

Q: How is it energy-efficient when there is still mining?

A: The energy efficiency we refer to is long-term energy efficiency, as in long term we do not require the use of energy to sustain the network.
Currently proof-of-work remains the most practical way of providing initial minting of a crypto-currency. So we decided to keep it as part of our hybrid design.

Peercoin (now and) in the future has a plethora of miners all over the world because mining is done on layman personal computers (i.e., everyone holding PPC is incentivized to mine for stake because it's easy to do and a guaranteed increase in personal wealth). This highly decentralized and dispersed group of miners = significantly low chance of manipulations

Q: Why do you need central checkpointing?

A: Decentralization is a hard problem. In our first release we still rely on a centrally broadcasted checkpointing mechanism to fully protect the network. We are actively considering/reviewing proposals to possibly substitute this part of the design and weaken/eliminate central checkpoint in the future to make peercoin approach the level of decentralization of Bitcoin.

Q: When can I start generating proof-of-stake blocks?

A: After 30 days the network would start seeing proof-of-stake blocks. If you have balance ppcoind would automatically try to generate stake for you. If you find a stake the reward is 1 cent per coin-year consumed (can be roughly understood as 1% interest annually). The reward amount is added to your stake amount and is shown together in the 'stake' field of getinfo output.

Because stake is withheld from spending for 520 blocks, if you do need to keep your balance around to be spent soon we provided a configuration option 'reservebalance' to help you keep your balance from being used by stake. You can add a line 'reservebalance=10000' to ppcoin.conf and restart your ppcoind. This way ppcoind would try to keep your balance above 10000 coins when generating stakes.

Q: Can I use encrypted wallet?

A: Yes. Encrypted wallet is supported but there is some difference from Bitcoin. If you use an encrypted wallet you would have to unlock the wallet in order to mint blocks. For user security we added an option to the walletpassphrase RPC command to mint block only. In this unlocked wallet mode, one cannot send transaction through RPC command thus providing additional security to the wallet if hacker gains access via RPC.

Q: Is there a cap on total money supply like Bitcoin's 21 million?

A: There is no hard cap other than a 2 billion coin max put into the code for now. But that should not be interpreted as an approachable cap, as it might never get anywhere close to that. It should not be considered a hard cap either as it may get lifted but that's likely not needed in a very very long time. Due to the nature of the mint rate design it's not possible to predict a final limit as it depends heavily on market participation, as well as the influences between proof-of-stake minting and fee destruction (there may not even be a mathematical limit if minting continues to outpace fee destruction). What we do know is that the proof-of-work minting would slow down exponentially according to Moore's Law (we are aware that Moore's Law eventually would stop to apply), and proof-of-stake minting introduces at most 1% annual inflation. So generally speaking it is still a very low future-inflation design comparable to Bitcoin.

In 0.2 release a 'moneysupply' stat is included in the getinfo output so everyone can see how many coins are in the market.

Q: What us the math formula used to calculate how many Peercoins will be mined per day given the difficulty and a hasrate?

A: Mint per block is calculated as
9999 / (difficulty ** (1/4))
Then you can derive your expected daily earnings from there.

Q: What is the value of PPC?

A: http://www.peercointalk.org/index.php shows PPC to BTC trading price

This was good but i need more!!!
well.... Great Explanation of Peercoin I recommend everyone starts by reading this
« Last Edit: February 02, 2014, 08:17:10 pm by FuzzyBear »
BTC: 1FvMYwtkrQakoL8Zq1GjfKqTkm2a7TKt6N  |
PPC: PDtcFPhMa9Hc9zTfoRG7zcURCRpcpRdMym
PPC Escrow 1% fee

Offline brenzi

  • Jr. Member
  • **
  • Posts: 18
  • Karma: +2/-0
  • Referrals: 0
    • View Profile
Re: FAQ
« Reply #1 on: May 16, 2013, 10:37:46 pm »
please make this thread sticky.

Offline FuzzyBear

  • Forum Operator
  • Administrator
  • No life but Peercoin!!
  • *****
  • Posts: 1339
  • Karma: +77/-0
  • Referrals: 14
    • View Profile
    • Escrow PPC trades 1% fee
Re: FAQ
« Reply #2 on: May 21, 2013, 01:14:21 pm »
please make this thread sticky.

for you Brenzi ... done :)

sticky enough for you now or u want me to cover in jam and leave out in the sun?? :D
BTC: 1FvMYwtkrQakoL8Zq1GjfKqTkm2a7TKt6N  |
PPC: PDtcFPhMa9Hc9zTfoRG7zcURCRpcpRdMym
PPC Escrow 1% fee

Offline brenzi

  • Jr. Member
  • **
  • Posts: 18
  • Karma: +2/-0
  • Referrals: 0
    • View Profile
Re: FAQ
« Reply #3 on: May 23, 2013, 08:33:34 pm »
well, no. It just dropped off the top. What strange kind of glue did you use? Spit? ;D
[edit]: browser reload seems to help that glue  :P

Offline Fixx

  • Full Member
  • ***
  • Posts: 60
  • Karma: +4/-0
  • Referrals: 0
    • View Profile
Re: FAQ
« Reply #4 on: May 28, 2013, 09:47:32 am »
« Last Edit: May 29, 2013, 11:53:35 am by Fixx »

Offline glowkeeper

  • Jr. Member
  • **
  • Posts: 32
  • Karma: +1/-0
  • Referrals: 0
    • View Profile
    • Steve Huckle
Re: FAQ
« Reply #5 on: May 28, 2013, 11:53:05 am »
PJ1WaFUXxG5Ww3dkKewkbutGXUPR3wGFy7

Offline glowkeeper

  • Jr. Member
  • **
  • Posts: 32
  • Karma: +1/-0
  • Referrals: 0
    • View Profile
    • Steve Huckle
Re: FAQ
« Reply #6 on: May 28, 2013, 11:55:19 am »
PJ1WaFUXxG5Ww3dkKewkbutGXUPR3wGFy7

Offline coolbeans94

  • Volunpeer
  • Full Member
  • *****
  • Posts: 61
  • Karma: +6/-0
  • Peercoin: The "Green" Cryptocurrency
  • Referrals: 0
    • View Profile
Re: FAQ
« Reply #7 on: September 13, 2013, 01:36:12 am »
Q: What us the math formula used to calculate how many PPCoins will be mined per day given the difficulty and a hasrate?

A: Mint per block is calculated as
9999 / (difficulty ** (1/4))
Then you can derive your expected daily earnings from there.


Might help to provide an example.
« Last Edit: September 18, 2013, 06:41:48 am by coolbeans94 »

Offline thiagomsoares

  • Newbie
  • *
  • Posts: 1
  • Karma: +0/-0
  • Hello I'm new here
  • Referrals: 0
    • View Profile
Re: Peercoins FAQ
« Reply #8 on: November 26, 2013, 03:39:54 pm »
I have the error opening ppcoin-qt
Database error: DB_RUNRECOVERY: Fatal error, run database recovery

Offline ttutdxh

  • Jr. Member
  • **
  • Posts: 5
  • Karma: +0/-0
  • Hello I'm new here
  • Referrals: 0
    • View Profile
Re: Peercoins FAQ
« Reply #9 on: November 27, 2013, 10:47:18 am »
Hello everyone,

I am new to this forum and I would like to start posting something that I think we are missing from the FAQ and the Wiki.
It is about the so-called concept of "Unlimited coins" of Peercoin. A misleading concept that we should clarify given that is becoming a reason why people is not even considering this coin.

So lets get the facts first; the majority of cryptocurrencies have a limit imposed in it's code that would not let generate more coins than that limit (supposing that this number of coins is ever reached)
  • BTC:    21 million coins
  • LTC:    84 million coins (4x BTC Limit)
  • PPC: 2000 million (2 billion as mentioned in the wiki) coins
These limits are far, far away in time, not even reached by year 2030+...

But what I am seeing now is that:
  • BTC block reward drops by half every 4 years, so more time = less coins generated until it will be unnoticeable
  • LTC block reward drops by half every 4 years, so more time = less coins generated until it will be unnoticeable (same as BTC) BUT a block with 50 coins is generated every 2.5 minutes, so more money in the same 4 years, x4 as planned.
  • PPC block reward drops by half every 16x hash power increase in the network, something that is happening regulary, like in btc or any other cryptocurrency.
    Explained in https://github.com/ppcoin/ppcoin/wiki/FAQ, specially the "Total Money Supply Curve" shows almost exponential decrease in the coins generated for the total PPC money supply

So the question is: with the current rates, is it posible that in 1-2 years there will be more LTC than PPC ?

Making some fast calculations, in October 2015 (before LTC reward drop) there will be around 24 millions PPC and 42.076.000 LTC? Is that even remotely aproximate?
« Last Edit: November 27, 2013, 11:59:19 am by ttutdxh »

Offline Alertness

  • Volunpeer
  • Sr. Member
  • *****
  • Posts: 171
  • Karma: +19/-0
  • Peercoin: Save money, Save energy
  • Referrals: 0
    • View Profile
Re: Peercoins FAQ
« Reply #10 on: November 27, 2013, 07:43:37 pm »
Peercoin's money supply is currently increasing at about 2,00,000 coins per year.  At the rate we are going it will take over 1,000 years to reach a money supply of 2 billion.

Since there is on average about 33 PoW blocks mined per day, a good way to estimate future money supply is as follows:

(block reward x 33) x 365 = Total # new coins mined via PoW in 1 year.

Note: This assumes a constant block reward.
« Last Edit: November 27, 2013, 07:50:01 pm by Alertness »

Offline Ben

  • Volunpeer
  • Peercoin Vocalist
  • *****
  • Posts: 1039
  • Karma: +59/-0
  • Referrals: 0
    • View Profile
Re: Peercoins FAQ
« Reply #11 on: November 27, 2013, 09:04:07 pm »
I like this conversation, thanks for bringing it up. Are these calculations correct? I'm trying to understand this all myself, so putting it together like this is helpful (as long as I got it right):

Current LTC in circulation: 23,394,442
Current PPC in circulation: 20,813,530

So, right off the bat, they've already got a lead on total units in circulation.

PPC Block reward (166.22 PPC  * ~33 PoW blocks): +5,485 PPC / day (~+6,000/day with PoS - txn fees)
LTC Block reward (50 LTC / 150 seconds): +28,800 LTC / day

In that case, that means that the Litecoin network is generating 28,800 LTC per day == 10,512,000 LTC in 2014*

Add in the 34 days left in this year * 28,800 == and you get a total supply at the end of 2014 that is approximately...

23,394,442 (current) +
979,200 (rest of 2013) +
10,512,000 (2014)
------------------------------
34,885,642 LTC (cumulative, end of 2014)


If Peercoin's supply curve stays approximately the same (though with the increased network hashrate, I expect the PoW block rewards will decrease significantly), is this calculation correct?

20,813,530 (current) +
204,000 (rest of 2013) +
2,190,000 (2014)
------------------------------
23,207,530 PPC (cumulative, end of 2014)

If those values are right, am I correct to summarize it like this?

  • Litecoin's monetary supply will, by the end of 2014, be 49.1% (11,491,200 LTC) larger than it is today
  • Peercoin's monetary supply will be 11.5% (2,394,000 PPC) larger than it is today



*assuming the block reward doesn't halve next year, which I don't think it is scheduled to
Twitter: @b_rossi
Reddit & Bitcointalk: Mtinie
BM-2cSvefdSPtfzKLRmQVzcZ7EncEv4WoWYhJ

Offline Ben

  • Volunpeer
  • Peercoin Vocalist
  • *****
  • Posts: 1039
  • Karma: +59/-0
  • Referrals: 0
    • View Profile
Re: Peercoins FAQ
« Reply #12 on: November 27, 2013, 09:15:42 pm »
Quote
Making some fast calculations, in October 2015 (before LTC reward drop) there will be around 24 millions PPC and 42.076.000 LTC? Is that even remotely aproximate?

34,885,642 LTC (Jan. 1, 2015) + (28,800 LTC per day * 303 days until Oct. 31, 2015) = 43,612,042 LTC (est., Nov. 1, 2015)

Peercoin is hard to predict, because the network hashrate continues to grow and block rewards keep being halved. Your estimation of 24,000,000 PPC in circulation on Nov. 1, 2015 is as good a guess as mine.


If that's the case, and my math works out right, there are 1.119 LTC / 1.000 PPC (today), but in November of 2015 that ratio will be 1.817 LTC / 1.000 PPC.
Twitter: @b_rossi
Reddit & Bitcointalk: Mtinie
BM-2cSvefdSPtfzKLRmQVzcZ7EncEv4WoWYhJ

Offline Alertness

  • Volunpeer
  • Sr. Member
  • *****
  • Posts: 171
  • Karma: +19/-0
  • Peercoin: Save money, Save energy
  • Referrals: 0
    • View Profile
Re: Peercoins FAQ
« Reply #13 on: November 27, 2013, 09:26:08 pm »
Yes. Those conclusions are accurate. Peercoin is UBER RARE compared to LTC. Peercoin's inflation rate already lower than LTC, and is approaching Bitcoin's inflation rate.
« Last Edit: November 27, 2013, 09:28:55 pm by Alertness »

Offline wigo21

  • Newbie
  • *
  • Posts: 1
  • Karma: +0/-0
  • Hello I'm new here
  • Referrals: 0
    • View Profile
Re: Peercoins FAQ
« Reply #14 on: November 28, 2013, 06:18:23 pm »
I am looking to buy Peercoins. Would you guys be able to recommend the best and fastest way to purchase them?

 
Share this topic...
In a forum
(BBCode)
In a site/blog
(HTML)


Peercoin.net Official Peercoin Website