PoolCoin - new cryptocurrency
PoolCoin concept:
I have been thinking about what an ideal cryptocurrency should be for a very long time. And a rather interesting idea of a new electronic payment system came to my mind.
I know that lately there have been many such systems invented. Numerous forklifts of popular cryptocurrencies flooded the network. Unfortunately, for the most part they are just copies, but sometimes there is something original. First of all, I can highlight such currencies as: LiteCoin, PPConin, NameCoin, NovaCoin, PrimeCoin and FreiCoin. However, their forks are being created again and again, and this indicates that the world needs some decent bitcoin alternative. Well, I will try to outdo all these projects. But before throwing slippers at me, please rate my concept more carefully.
First, let's see what is the reason for the failure of previous cryptocurrencies?
The first reason is the lack of a good pool:
Not many people can afford solo mining, so people are looking for the most stable joint generation pool. Often, new projects do not have such pools, and people are disappointed.
How to solve this problem? I found only one way - to make a reward system for the found block of a new currency in the image of a standard Proportional pool. Thus, in the system of new cryptocurrency, the need for pools disappears, since, in essence, the system itself carries the function of a pool.
The second reason is the drop in the profitability of mining:
Indeed, in the majority of cryptocurrencies, one and the same pattern can be traced - with the growth of the system, mining becomes less profitable. To solve this problem, you must enter the scale responsible for rewards. The principle is simple: the more computing power the system participant spent, the more this power differs from the capacity of other system participants, the higher the earnings.
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The third reason is mining finiteness:
Deep down the miner, every miner knows that someday all coins will be obtained, and his miracle farm will become a mountain of useless iron. To solve this problem, you can cancel a limited number of coins. But an infinite amount of coins can lead to the depreciation of money, so you need a regulator, a kind of limiter, which would devour excess money supply. The example of FreiCoin suggests the principle of Silvio Gezsel’s money, but this approach failed. The solution to this problem will be discussed below.
The fourth reason is speculation on the stock exchanges:
Currency exchanges differ from exchangers. If in exchange offices you can only exchange coins with real money, then on exchanges there is such a thing as speculation. Speculators can not only raise the rate of a relatively unpromising currency to heaven, but also bring down the course of a really high-quality project, thereby scaring off the participants of the system. Money flows from pocket to pocket, not fulfilling the function of buying goods embedded in them.
How to solve this and the previous problem? The classic technique is when one problem destroys another. So I will do. It is necessary to make so that during transaction some of the money is destroyed. Thus, we will limit not only excessive speculation, and consequently, a sharp fluctuation of the exchange rate, but also introduce a mechanism for limiting the total number of existing coins. The fact is that if the rate becomes low, the mining will become unprofitable and stop, then a huge number of transactions with the obligatory demolishing commission will simply eat extra coins and raise the rate to payback by mining.
Thus, we get an effective system consisting of two balances. The process of generating new money is called mining, and I called the process of destruction of extra coins “harming” (from the English word “harm” - harm [meaning harm to speculators]).
The more computing power of the system is spent on transactions, the more mandatory self-destructing commission on transactions, and, consequently, higher harming. Conversely, the more space from the entire computing power of the system is mining, the lower the commission.
The fifth reason is the invasion of the ASICs:
As the Bitcoin network develops, participants increase their personal computing power. The emergence of ASICs was one of the reasons that the mining on video cards has ceased to be profitable, which, in turn, causes some injustice.
Therefore, a new currency should use a different algorithm. But what about those who have increased such computing power, as ASICs will soon become obsolete, ceasing to make a profit. It turns out that they will not be able to attract their resources to participate in the new system? For mining certainly can not, because it will create a terrible imbalance and leave the rest of the participants without profit. By the way, this has already happened with the systems of other cryptocurrencies.
But there are also transactions. Participants with ASICs must earn money by providing money transfers within the new system.
The sixth reason is the lack of useful work:
There is a widespread belief that mining is a waste of computing power. Indeed, besides supporting the transactions of useful work, he does not perform, and this confuses many. Therefore, it would be good to find an algorithm that can be embedded in the mining mechanism. The fact is that it would be very convenient to adjust the complexity of the network, increasing or decreasing the proportion of the third-party algorithm in the system.
The seventh reason is bitcoin:
Perhaps, if the Bitcoin system disappeared at one terrible moment, other cryptocurrencies would immediately take its place. But this system is already invincible, so you need to find a way to cooperate with it, or, in extreme cases, to fight.
Let's sum up:
We analyzed the main reasons for the failure of previous cryptocurrency projects, and it is time to introduce you to my concept of electronic money.
The main postulates of my idea:
1. Mining is done through scripts algorithm exclusively on the CPU.
2. The difficulty is recalculated every day at 0:00 GMT. The complexity is given with the expectation that 1 block will be found within 15 minutes. Thus, in 1 day about 96 blocks are detected.
3. The number of coins generated per day depends on the power of the network.
This is calculated by the formula:
X * 10, where "X" is the power of the network (in Th / s).
If, for example, the network capacity is 100 Th / s, then 1000 coins are generated per day. Accordingly, for 1 block miners receive 10.4166667 coins.
With a network capacity of 1000 Th / s, 10,000 coins will be generated per day, 104.166667 coins per block.
4. The reward for the found block is recalculated every day at 0:00 GMT.
The award is distributed among all search participants in proportion to the computational power expended by the participant.
5. With each transaction, a mandatory commission is taken, which immediately self-destructs, reducing the amount of money supply. This process is called harming.
6. The amount of commission depends on the share of network capacity spent on the implementation and confirmation of transactions, but does not exceed 10% of the amount transferred.
For example, if all the computing power is directed to mining (for the previous day there was not a single transaction), then the commission is 0%. If all the computing power is directed to the implementation of transactions (for the previous day no blocks were found), then the commission will be 5%. With equal shares of the spent capacity for the implementation of mining and transactions, the commission will be 10% of the transaction amount.
This is calculated by the formula:
Y / 10, where "Y" is the percentage of the power used to carry out and confirm network transactions of the total network capacity.
The percentage of harming is recalculated every day at 0:00 GMT.
7. Transactions are secured using the GPU and utilize the resources of the video card. Thus, the owners of ASICs will also be able to earn money, but only on an additional commission from transactions. Additional commission is limited and cannot exceed 1% of the transaction amount.
Actually these are the basic rules. I am completely sure of them and know that this can be implemented in practice.
The following two points are more radical. Unfortunately, I don’t know if there is a technical possibility to carry them out, but I think it’s still worth writing.
8. The complexity is regulated not only in the traditional way for Bitcoin / Litecoin, but also through the use of third-party algorithms Majestic-12 and R @ H.
9. Because Bitcoin is recognized as electronic gold, PoolCoin aims to be provided with this gold. The client has a built-in exchanger, which is a bitcoin address. When a certain amount of bitcoins are sent to this address, a corresponding amount of multicultural coins will automatically arrive at the participant’s wallet. At the same time, new coins are generated, which are not taken into account in the mining process. The bitcoins received by the system are destroyed. Thus, the system partially provides its value with the cost of bitcoins. The exchange rate depends on the difference in network complexity.
Example: Suppose the Bitcoin network complexity is 3000 Th / s, and the complexity of the Pulcoin network is 1000 Th / s. The complexity of the Bitcoin network is 3 times the complexity of the Pulcoin network, therefore for 1 Bitcoin will receive 3 Pulcoins, and the bitcoin sent to the system will be destroyed. Over time, the complexity of the Bitcoin network will be less than the complexity of the Pulcoin network, and then for the 1 Bitcoin sent to the system and destroyed, the participant will receive less than 1 Pulcoin. There is a possibility that after some time all Bitcoins will be processed by the Pulcoin system. For example, under force majeure circumstances, bitcoins will drop sharply in price, then they can be exchanged through a wallet for still expensive pulcoins at a more favorable rate than on the stock exchange. The number of bitcoins will fall sharply and they will rise again. In addition, this mechanism will provide a relatively stable rate of the new currency, since it is foolish to buy the Pulcoins at a higher price than this can be done.
I have it all. I will be glad to hear your opinion. Also announced a set in the team of new currency developers.
I have been thinking about what an ideal cryptocurrency should be for a very long time. And a rather interesting idea of a new electronic payment system came to my mind.
I know that lately there have been many such systems invented. Numerous forklifts of popular cryptocurrencies flooded the network. Unfortunately, for the most part they are just copies, but sometimes there is something original. First of all, I can highlight such currencies as: LiteCoin, PPConin, NameCoin, NovaCoin, PrimeCoin and FreiCoin. However, their forks are being created again and again, and this indicates that the world needs some decent bitcoin alternative. Well, I will try to outdo all these projects. But before throwing slippers at me, please rate my concept more carefully.
First, let's see what is the reason for the failure of previous cryptocurrencies?
The first reason is the lack of a good pool:
Not many people can afford solo mining, so people are looking for the most stable joint generation pool. Often, new projects do not have such pools, and people are disappointed.
How to solve this problem? I found only one way - to make a reward system for the found block of a new currency in the image of a standard Proportional pool. Thus, in the system of new cryptocurrency, the need for pools disappears, since, in essence, the system itself carries the function of a pool.
The second reason is the drop in the profitability of mining:
Indeed, in the majority of cryptocurrencies, one and the same pattern can be traced - with the growth of the system, mining becomes less profitable. To solve this problem, you must enter the scale responsible for rewards. The principle is simple: the more computing power the system participant spent, the more this power differs from the capacity of other system participants, the higher the earnings.
')
The third reason is mining finiteness:
Deep down the miner, every miner knows that someday all coins will be obtained, and his miracle farm will become a mountain of useless iron. To solve this problem, you can cancel a limited number of coins. But an infinite amount of coins can lead to the depreciation of money, so you need a regulator, a kind of limiter, which would devour excess money supply. The example of FreiCoin suggests the principle of Silvio Gezsel’s money, but this approach failed. The solution to this problem will be discussed below.
The fourth reason is speculation on the stock exchanges:
Currency exchanges differ from exchangers. If in exchange offices you can only exchange coins with real money, then on exchanges there is such a thing as speculation. Speculators can not only raise the rate of a relatively unpromising currency to heaven, but also bring down the course of a really high-quality project, thereby scaring off the participants of the system. Money flows from pocket to pocket, not fulfilling the function of buying goods embedded in them.
How to solve this and the previous problem? The classic technique is when one problem destroys another. So I will do. It is necessary to make so that during transaction some of the money is destroyed. Thus, we will limit not only excessive speculation, and consequently, a sharp fluctuation of the exchange rate, but also introduce a mechanism for limiting the total number of existing coins. The fact is that if the rate becomes low, the mining will become unprofitable and stop, then a huge number of transactions with the obligatory demolishing commission will simply eat extra coins and raise the rate to payback by mining.
Thus, we get an effective system consisting of two balances. The process of generating new money is called mining, and I called the process of destruction of extra coins “harming” (from the English word “harm” - harm [meaning harm to speculators]).
The more computing power of the system is spent on transactions, the more mandatory self-destructing commission on transactions, and, consequently, higher harming. Conversely, the more space from the entire computing power of the system is mining, the lower the commission.
The fifth reason is the invasion of the ASICs:
As the Bitcoin network develops, participants increase their personal computing power. The emergence of ASICs was one of the reasons that the mining on video cards has ceased to be profitable, which, in turn, causes some injustice.
Therefore, a new currency should use a different algorithm. But what about those who have increased such computing power, as ASICs will soon become obsolete, ceasing to make a profit. It turns out that they will not be able to attract their resources to participate in the new system? For mining certainly can not, because it will create a terrible imbalance and leave the rest of the participants without profit. By the way, this has already happened with the systems of other cryptocurrencies.
But there are also transactions. Participants with ASICs must earn money by providing money transfers within the new system.
The sixth reason is the lack of useful work:
There is a widespread belief that mining is a waste of computing power. Indeed, besides supporting the transactions of useful work, he does not perform, and this confuses many. Therefore, it would be good to find an algorithm that can be embedded in the mining mechanism. The fact is that it would be very convenient to adjust the complexity of the network, increasing or decreasing the proportion of the third-party algorithm in the system.
The seventh reason is bitcoin:
Perhaps, if the Bitcoin system disappeared at one terrible moment, other cryptocurrencies would immediately take its place. But this system is already invincible, so you need to find a way to cooperate with it, or, in extreme cases, to fight.
Let's sum up:
We analyzed the main reasons for the failure of previous cryptocurrency projects, and it is time to introduce you to my concept of electronic money.
The main postulates of my idea:
1. Mining is done through scripts algorithm exclusively on the CPU.
2. The difficulty is recalculated every day at 0:00 GMT. The complexity is given with the expectation that 1 block will be found within 15 minutes. Thus, in 1 day about 96 blocks are detected.
3. The number of coins generated per day depends on the power of the network.
This is calculated by the formula:
X * 10, where "X" is the power of the network (in Th / s).
If, for example, the network capacity is 100 Th / s, then 1000 coins are generated per day. Accordingly, for 1 block miners receive 10.4166667 coins.
With a network capacity of 1000 Th / s, 10,000 coins will be generated per day, 104.166667 coins per block.
4. The reward for the found block is recalculated every day at 0:00 GMT.
The award is distributed among all search participants in proportion to the computational power expended by the participant.
5. With each transaction, a mandatory commission is taken, which immediately self-destructs, reducing the amount of money supply. This process is called harming.
6. The amount of commission depends on the share of network capacity spent on the implementation and confirmation of transactions, but does not exceed 10% of the amount transferred.
For example, if all the computing power is directed to mining (for the previous day there was not a single transaction), then the commission is 0%. If all the computing power is directed to the implementation of transactions (for the previous day no blocks were found), then the commission will be 5%. With equal shares of the spent capacity for the implementation of mining and transactions, the commission will be 10% of the transaction amount.
This is calculated by the formula:
Y / 10, where "Y" is the percentage of the power used to carry out and confirm network transactions of the total network capacity.
The percentage of harming is recalculated every day at 0:00 GMT.
7. Transactions are secured using the GPU and utilize the resources of the video card. Thus, the owners of ASICs will also be able to earn money, but only on an additional commission from transactions. Additional commission is limited and cannot exceed 1% of the transaction amount.
Actually these are the basic rules. I am completely sure of them and know that this can be implemented in practice.
The following two points are more radical. Unfortunately, I don’t know if there is a technical possibility to carry them out, but I think it’s still worth writing.
8. The complexity is regulated not only in the traditional way for Bitcoin / Litecoin, but also through the use of third-party algorithms Majestic-12 and R @ H.
9. Because Bitcoin is recognized as electronic gold, PoolCoin aims to be provided with this gold. The client has a built-in exchanger, which is a bitcoin address. When a certain amount of bitcoins are sent to this address, a corresponding amount of multicultural coins will automatically arrive at the participant’s wallet. At the same time, new coins are generated, which are not taken into account in the mining process. The bitcoins received by the system are destroyed. Thus, the system partially provides its value with the cost of bitcoins. The exchange rate depends on the difference in network complexity.
Example: Suppose the Bitcoin network complexity is 3000 Th / s, and the complexity of the Pulcoin network is 1000 Th / s. The complexity of the Bitcoin network is 3 times the complexity of the Pulcoin network, therefore for 1 Bitcoin will receive 3 Pulcoins, and the bitcoin sent to the system will be destroyed. Over time, the complexity of the Bitcoin network will be less than the complexity of the Pulcoin network, and then for the 1 Bitcoin sent to the system and destroyed, the participant will receive less than 1 Pulcoin. There is a possibility that after some time all Bitcoins will be processed by the Pulcoin system. For example, under force majeure circumstances, bitcoins will drop sharply in price, then they can be exchanged through a wallet for still expensive pulcoins at a more favorable rate than on the stock exchange. The number of bitcoins will fall sharply and they will rise again. In addition, this mechanism will provide a relatively stable rate of the new currency, since it is foolish to buy the Pulcoins at a higher price than this can be done.
I have it all. I will be glad to hear your opinion. Also announced a set in the team of new currency developers.
Source: https://habr.com/ru/post/199068/
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