"Bitcoiners finally realize the centralization of Bitcoin mining: Gavin Andresen on Twitter - Why is mining centralized today? Because you need $10mil to start to be profitable. (twitter.com)"
https://www.reddit.com/…/bitcoiners_finally_realize_the_ce…/
"I doubt that is what David is implying. This tax ruling (which shouldn't have surprised anyone), brings focus to the unpleasant fact that Bitcoin and Peercoin are too volatile for use in ordinary business transactions. They are not currencies. They are cryptocommodities. We need a cryptocurrency: something stable in value that has no capital gains or losses and no attendant accounting complexities.
There was a time when I believed Bitcoin would provide a permanent and stable... foundation for a decentralized financial ecosystem. Sunny King had the courage to see that this was unfortunately not the case, but he didn't admit defeat. He engineered Peercoin as a solution to the shortcomings of Bitcoin. We must be honest and brave in admitting the flaws of Peercoin to begin to able to engineer a solution to those shortcomings. If you can articulate a problem well, a solution tends to emerge.
Bitcoin is made obsolete by Peercoin. I don't think Peercoin has to rendered obsolete to engineer a solution to its volatility problem, but I do think it is time to stop imagining Peercoin can make a good currency in its present form. That is emotionally challenging for a lot of people on this forum. " - Jordan Lee (March 27, 2014
I would like to present the specific steps of an attack exploiting the "nothing at stake" phenomena. As you will see, the attack does not pose a serious threat to the network.
Let's consider the above attack scenario for someone who has accumulated 6% of all Peercoins, meaning they spent at least $2,400,000 USD on Peercoins at today's prices and split them up into 6 different outputs or addresses (one for each of the 6 consecutive blocks they need). Let's assume they waited 9...0 days to mint with those coins. Such a person might have a 3% chance of finding the next block. If they succeed at getting one and only one confirmation on their multiple spends they cannot defraud an exchange (because they typically require 6 confirmations). They have less than a 0.1% chance of getting two blocks in a row and around 0.003% of find three in a row. The chance they will find six blocks in a row is 0.00000000729%. They must wait 90 days to get another optimal chance to attack after a failed attempt.
See More
"Peershares are an inexpensive and decentralized ledger to be used by businesses for tracking share ownership and distributing dividends in an automated fashion. Shares can be transferred and held just like Peercoins. Each business using Peershares will have their own blockchain that is independent of all others. Blockchains can be secured cheaply and easily using Proof of Stake. Using Peershares, a tiny business could raise funding through an IPO without depending on a third party such as a stock exchange. While trading shares through exchanges will be useful to provide liquidity, Peershares can be traded on any number of exchanges just as Peercoins can. A share issuer is not vulnerable to the failure of single stock exchange such as BTC Trading or Litecoin Global. Issuers can distribute dividends as Peercoins." - Jordan Lee
Nothing-at-stake
Busting the myth
Nothing-at-Stake is a busted myth because it is extremely unlikely that someone could successfully carry out this attack for both economical and technical reasons. When verifying whether the myth is true or false it is important to realize that Peercoin is not the only coin using PoS as a consensus mechanism and that there meaningful differences in the different implementations. In Peercoin there is a double-block protection mechanism (cancel...ling of top block for double stakes), coin age consumption and economical implications serving to protect against attacks. Now follows some variants of the myth and counter-arguments.
"What value does Peercoin have?
Just as any other strong economy which promotes savings, Peercoin also promotes savings. Just as any other successful company which derives it's value from capital efficiency, Peercoin also derives it's value from capital efficiency. Peercoin is intended to function as a secure savings and backbone currency/asset in the future crypto economy. To achieve this standard, it disincentives high volume transactions by design through its particular Po...S model and 0.01 PPC/kb fee in order to maintain a minimal size blockchain(300 MB approximately). Through Peercoin's PoS model, coins can only be used for minting 30 days after they have been transferred. This encourages users not to spend but to save their coins so they can contribute to the security of the network by minting and earning interest, which cancels out the inflation. Through having a 0.01 PPC tx fee, there is also less transaction bloat(smaller blockchain) which makes minting less cost prohibitive. On top of maintaining a small blockchain for capital efficiency, Peercoin also gradually phases out PoW distribution for the efficiency of PoS distribution as the PoS difficulty rises. "
See MoreThe future of Bitcoin is in Peercoin
-Gavin Andresen, Chief Scientist at the Bitcoin Foundation, predicts the fall of Bitcoin as we have known it.
EconTalk Episode, April 2011
Primecoin as sidechain for peercoin bit.ly/1HZOoRc #Peercoin
"If you are a Nushareholder, please vote"
"Money - whether its a tangible piece of paper or a number on a screen - is intrinsically worthless, yet it fuels the modern world"
"NuDroid is the first mobile and stable cryptocurrency wallet which can be used to pay for goods and services at the point of sale. Pay with your stable NuBits anywhere Bitcoin, Litecoin or Dogecoin is accepted without being exposed to their volatility."
Peercoin shared Julien Hamonic's post.
"Peercoin has been around for 2 years now. It's not a scam. Peercoin is a hybrid PoW/PoS coin. It uses PoW for coin distribution, but PoW plays no part in secur...ity. PoW will be ongoing until the community decides to disable it. Peercoin's inflation rate is already lower than Bitcoin. The only other way Peercoins come into existence is through the 1% minting reward. At the same time though, there exists a 0.01 PPC/kb transaction fee which is destroyed, rather than paid to miners. The destruction of the transaction fee is designed to offset inflation from minting and achieve equilibrium."
See MoreWeekly Update #120
Peerunity v0.1.2 in release candidates (http://www.peercointalk.org/index.php?topic=3668.0).
Mike has been making some good progress on the cold minting feature. The feature will introduce better security mechanism for Peercoin minters.
...
Have fun!
