Peercoin
The crypto currency Peercoin was already launched in August 2012 and is based on the source code of Bitcoin. However, the two founders Scott Nadal and Sunny King - the latter being a synonym - have made some significant changes. The reason: The Bitcoin system was not efficient enough for them. Reality has proven them right. Experts have calculated that Bitcoin Miners now consume as much energy as all Danish residents and businesses. However, the Peercoin is not the only cryptographic currency to address this problem - the Litecoin was also developed on the basis of similar considerations. Nevertheless, it is worth taking a closer look at the adjustments that have been made.
"Proof of Work" or "Proof of Stake"?
The reason for the high energy consumption of the Bitcoin is the procedure for confirming the individual transactions. Put simply, this is done by users providing computing power. The system was deliberately designed to be computationally intensive in order to make it more difficult for individuals to contribute more than half of the computing power and generate false confirmations. This process is known as "proof of work" and ensures high power consumption. The peer coin also uses this approach. The SHA-256 algorithm is used here. However, this so-called mining should only be used until sufficient coins are in circulation. Then the confirmations are to be made by "Proof of Stake". The decisive factor is then no longer the computing power provided, but the number of coins owned by a user and how long he has held them. This approach therefore requires significantly less computing power and thus energy.