PoolCoin - New Cryptocurrency
PoolCoin concept:
I have been thinking for a long time about what an ideal cryptocurrency should be like. And I came up with a rather interesting idea for a new electronic payment system.
I know that in recent years a lot of such systems have been invented. Numerous forks of popular cryptocurrencies have flooded the network. Unfortunately, for the most part they are only copies, but sometimes something original is found. 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 worthy alternative to bitcoin. Well, I will try to surpass all these projects. But before throwing slippers at me, please evaluate my concept more carefully.
To get started, let's figure out what is the reason for the failure of previous cryptocurrencies?
The first reason is the lack of a good pool:
Not many can afford solo mining, so people are looking for the most stable pool for joint generation. 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 the new currency in the image and likeness of the standard Proportional pool. Thus, in the new cryptocurrency system, the need for pools disappears, since, in fact, the system itself carries the function of a pool.
The second reason is a drop in mining profitability:
Indeed, in most cryptocurrencies one and the same pattern can be traced - with the growth of the system, mining becomes less profitable. To solve this problem, it is necessary to introduce a scale that is responsible for rewards. The principle is simple, the more computing power a participant in the system has spent, the more this power differs from the capacities of other participants in the system, the higher the earnings.
The third reason is the finiteness of mining:
Every miner in his heart knows that someday all the coins will be reached, and his miracle farm will turn into a mountain of useless iron. You can solve this problem by canceling a limited number of coins. But an infinite number of coins can lead to the depreciation of money, therefore, we need a regulator, a kind of limiter, which would devour excess money. FreiCoin’s example offers us Silvio Gozzel’s money principle, but this approach has failed. A solution to this problem will be discussed below.
The fourth reason is speculation on exchanges:
Currency exchanges are different from exchangers. If in exchangers you can only exchange mined coins for real money, then there is such a thing as speculation on exchanges. Speculators can not only raise the course of a relatively unpromising currency to heaven, but also bring down the course of a really high-quality project, thereby frightening the participants of the system. Money flows from pocket to pocket, not fulfilling the function of buying goods inherent in them.
How to solve this and the previous problem? A classic trick is when one problem destroys another. I will do so. It is necessary to make sure that part of the money is destroyed during the transaction. Thus, we will limit not only excessive speculation and, consequently, sharp fluctuations in the exchange rate, but also introduce a mechanism to limit the total number of existing coins. The fact is that if the rate becomes low, mining becomes unprofitable and stops, then a huge number of transactions with a mandatory destructive commission will simply eat extra coins and increase the rate to the payback by mining.
Thus, we get an effective system consisting of two counterweights. The process of generating new money is called mining, and I called the process of destroying excess coins “harming” (from the English word “harm” - harm [meaning harm to speculators]).
The more processing power of the system is spent on transactions, the greater the mandatory self-destructing commission from transactions, and, consequently, higher harming. And vice versa, the more space from the entire processing power of the system takes mining, the less commission.
The fifth reason is the invasion of ASICs:
As the Bitcoin network develops, participants increase their personal computing power. The emergence of ASICs was one of the reasons that mining on video cards ceased to be profitable, which, in turn, gives rise to a certain injustice.
Therefore, the new currency should use a different algorithm. But what about those who have increased such computing power, because ASICs will soon become obsolete, stopping making profit. It turns out that they will not be able to attract their resources to participate in the new system? They certainly won’t be able to mine, as this will create a terrible imbalance and leave the rest of the participants without profit. This, by the way, has already happened with 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 popular belief that mining is a waste of computing power. Indeed, in addition to maintaining transactions of useful work, he does not perform, and many are confused. Therefore, it would be nice to find an algorithm that can be implemented in the mining mechanism. The fact is that it would be very convenient to adjust the complexity of the network by increasing or decreasing the proportion of a 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.
To summarize:
We examined 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 carried out through the scripts algorithm exclusively on the CPU.
2. Difficulty is recalculated every day at 0:00 GMT. The complexity is set 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 network capacity.
This is calculated according to the formula:
X * 10, where "X" is the network power (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 1 block.
4. The reward for the found block is recounted every day at 0:00 GMT.
The award is distributed among all search participants in proportion to the computing power spent by the participant.
5. A mandatory commission is taken from each transaction, which is immediately self-destructing, reducing the amount of money supply. This process is called harming.
6. The size of the commission depends on the share of the network capacity spent on the implementation and confirmation of transactions, but does not exceed 10% of the transferred amount.
For example, if all the computing power is directed to mining (there were no transactions in the previous day), then the commission is 0%. If all the computing power is directed to transactions (no blocks were found over the previous day), then the commission will be 5%. With equal shares of the spent capacities for mining and transactions, the commission will be 10% of the transaction amount.
This is calculated according to the formula:
Y / 10, where “Y” is the percentage of 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 use the resources of the video card. Thus, owners of ASICs will also be able to earn, but only on 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 confident in them and I know that this can be implemented in practice.
The following two points are more radical. Unfortunately, I do not know if there is a technical possibility to implement them, but I think it's worth writing.
8. Complexity is regulated not only by the traditional method for bitcoin / lightcoin, but also by using third-party algorithms Majestic-12 and R @ H.
9. Since Bitcoin is recognized as electronic gold, PoolCoin aims to be backed by this gold. The client has a built-in exchanger, which is a bitcoin address. When you send a certain number of bitcoins to this address, the corresponding amount of pulcoins automatically comes to the participant’s wallet. At the same time, new coins are generated that are not taken into account in the mining process. The bitcoins received in the system are destroyed. Thus, the system partially provides its value with the value of bitcoins. The exchange rate depends on the difference in the complexity of the networks.
Example: for example, the bitcoin network complexity is 3000 Th / s, and the Pulcoin network complexity is 1000 Th / s. The complexity of the Bitcoin network is 3 times greater than the complexity of the Pulcoin network, therefore, for 1 Bitcoin, it will receive 3 Pulcoins, and the bitcoin sent to the system will be destroyed. Over time, the complexity of the Bitcoin network will become less than the complexity of the Pulcoin network, and then for 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 are 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 exchange. The number of bitcoins will drop sharply and they will rise in price again. In addition, this mechanism will provide a relatively stable exchange rate for the new currency,
That’s all for me. I will be glad to hear your opinion. Also announced the recruitment to the development team of the new currency.
I have been thinking for a long time about what an ideal cryptocurrency should be like. And I came up with a rather interesting idea for a new electronic payment system.
I know that in recent years a lot of such systems have been invented. Numerous forks of popular cryptocurrencies have flooded the network. Unfortunately, for the most part they are only copies, but sometimes something original is found. 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 worthy alternative to bitcoin. Well, I will try to surpass all these projects. But before throwing slippers at me, please evaluate my concept more carefully.
To get started, let's figure out what is the reason for the failure of previous cryptocurrencies?
The first reason is the lack of a good pool:
Not many can afford solo mining, so people are looking for the most stable pool for joint generation. 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 the new currency in the image and likeness of the standard Proportional pool. Thus, in the new cryptocurrency system, the need for pools disappears, since, in fact, the system itself carries the function of a pool.
The second reason is a drop in mining profitability:
Indeed, in most cryptocurrencies one and the same pattern can be traced - with the growth of the system, mining becomes less profitable. To solve this problem, it is necessary to introduce a scale that is responsible for rewards. The principle is simple, the more computing power a participant in the system has spent, the more this power differs from the capacities of other participants in the system, the higher the earnings.
The third reason is the finiteness of mining:
Every miner in his heart knows that someday all the coins will be reached, and his miracle farm will turn into a mountain of useless iron. You can solve this problem by canceling a limited number of coins. But an infinite number of coins can lead to the depreciation of money, therefore, we need a regulator, a kind of limiter, which would devour excess money. FreiCoin’s example offers us Silvio Gozzel’s money principle, but this approach has failed. A solution to this problem will be discussed below.
The fourth reason is speculation on exchanges:
Currency exchanges are different from exchangers. If in exchangers you can only exchange mined coins for real money, then there is such a thing as speculation on exchanges. Speculators can not only raise the course of a relatively unpromising currency to heaven, but also bring down the course of a really high-quality project, thereby frightening the participants of the system. Money flows from pocket to pocket, not fulfilling the function of buying goods inherent in them.
How to solve this and the previous problem? A classic trick is when one problem destroys another. I will do so. It is necessary to make sure that part of the money is destroyed during the transaction. Thus, we will limit not only excessive speculation and, consequently, sharp fluctuations in the exchange rate, but also introduce a mechanism to limit the total number of existing coins. The fact is that if the rate becomes low, mining becomes unprofitable and stops, then a huge number of transactions with a mandatory destructive commission will simply eat extra coins and increase the rate to the payback by mining.
Thus, we get an effective system consisting of two counterweights. The process of generating new money is called mining, and I called the process of destroying excess coins “harming” (from the English word “harm” - harm [meaning harm to speculators]).
The more processing power of the system is spent on transactions, the greater the mandatory self-destructing commission from transactions, and, consequently, higher harming. And vice versa, the more space from the entire processing power of the system takes mining, the less commission.
The fifth reason is the invasion of ASICs:
As the Bitcoin network develops, participants increase their personal computing power. The emergence of ASICs was one of the reasons that mining on video cards ceased to be profitable, which, in turn, gives rise to a certain injustice.
Therefore, the new currency should use a different algorithm. But what about those who have increased such computing power, because ASICs will soon become obsolete, stopping making profit. It turns out that they will not be able to attract their resources to participate in the new system? They certainly won’t be able to mine, as this will create a terrible imbalance and leave the rest of the participants without profit. This, by the way, has already happened with 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 popular belief that mining is a waste of computing power. Indeed, in addition to maintaining transactions of useful work, he does not perform, and many are confused. Therefore, it would be nice to find an algorithm that can be implemented in the mining mechanism. The fact is that it would be very convenient to adjust the complexity of the network by increasing or decreasing the proportion of a 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.
To summarize:
We examined 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 carried out through the scripts algorithm exclusively on the CPU.
2. Difficulty is recalculated every day at 0:00 GMT. The complexity is set 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 network capacity.
This is calculated according to the formula:
X * 10, where "X" is the network power (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 1 block.
4. The reward for the found block is recounted every day at 0:00 GMT.
The award is distributed among all search participants in proportion to the computing power spent by the participant.
5. A mandatory commission is taken from each transaction, which is immediately self-destructing, reducing the amount of money supply. This process is called harming.
6. The size of the commission depends on the share of the network capacity spent on the implementation and confirmation of transactions, but does not exceed 10% of the transferred amount.
For example, if all the computing power is directed to mining (there were no transactions in the previous day), then the commission is 0%. If all the computing power is directed to transactions (no blocks were found over the previous day), then the commission will be 5%. With equal shares of the spent capacities for mining and transactions, the commission will be 10% of the transaction amount.
This is calculated according to the formula:
Y / 10, where “Y” is the percentage of 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 use the resources of the video card. Thus, owners of ASICs will also be able to earn, but only on 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 confident in them and I know that this can be implemented in practice.
The following two points are more radical. Unfortunately, I do not know if there is a technical possibility to implement them, but I think it's worth writing.
8. Complexity is regulated not only by the traditional method for bitcoin / lightcoin, but also by using third-party algorithms Majestic-12 and R @ H.
9. Since Bitcoin is recognized as electronic gold, PoolCoin aims to be backed by this gold. The client has a built-in exchanger, which is a bitcoin address. When you send a certain number of bitcoins to this address, the corresponding amount of pulcoins automatically comes to the participant’s wallet. At the same time, new coins are generated that are not taken into account in the mining process. The bitcoins received in the system are destroyed. Thus, the system partially provides its value with the value of bitcoins. The exchange rate depends on the difference in the complexity of the networks.
Example: for example, the bitcoin network complexity is 3000 Th / s, and the Pulcoin network complexity is 1000 Th / s. The complexity of the Bitcoin network is 3 times greater than the complexity of the Pulcoin network, therefore, for 1 Bitcoin, it will receive 3 Pulcoins, and the bitcoin sent to the system will be destroyed. Over time, the complexity of the Bitcoin network will become less than the complexity of the Pulcoin network, and then for 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 are 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 exchange. The number of bitcoins will drop sharply and they will rise in price again. In addition, this mechanism will provide a relatively stable exchange rate for the new currency,
That’s all for me. I will be glad to hear your opinion. Also announced the recruitment to the development team of the new currency.