Primecoin

1 EUR = 1.99738 XPM 1 XPM = 0.5006 EUR

Primecoin (symbol: Ψ (Psi ); Code: XPM ), a Bitcoin -based crypto- currency that uses a prime number search algorithm as for the proof - of-work.

Primecoin was released from software developers Sunny King (author of Peercoin ) in July 2013. Primecoin based on the technical principles and the source code of Bitcoin. The source code of Primecoin is also under the MIT license.

According to the author it is massively to calculate quasi useless hashes based on SHA -256 is a waste without equal in Bitcoin. With this computing power could be but, we have to give for a proof-of -work, solve problems scientifically useful.

Basics

At Primecoin is, as Bitcoin to a distributed peer-to -peer system, in which transactions are stored. In this case, each participant (peer ) a copy of the block chain ( a linked list of data blocks that contain the transactions). New blocks are automatically distributed in this network to all participants. The creation of new blocks is subject to certain conditions. A new block must be found with some computational effort. This process is called " mining" and made ​​of dedicated programs.

Whether a newly discovered block is accepted and thus the block chain is received, is by consensus of participants decided (see also problem of Byzantine Generals ). Each affiliate program decides for itself whether it believes and accepts the new block to be valid. Since most participants share an implementation and thus the principles, creates a majority consensus. Should there be two equally valid new blocks, the longer part of the long term gain.

Differences to Bitcoin

  • The algorithm for the proof - of-work instead of SHA- 256 is finding the longest Cunningham chain. Cunningham chains are useful for encryption algorithms such as the ElGamal encryption scheme.
  • Faster block generation intervals: 1 block per minute instead of Bitcoin at 1 per 10 min
  • Faster confirmation of transactions ( follows from generation interval)
  • Continuous adaptation of the difficulty levels ( to create new blocks) instead of Bitcoin at all 2016 blocks ( about 2 weeks)
  • Self-regulating reward generated per block. Bitcoin starts with 50 and divide the reward all 210,000 block. This gives a maximum of 21 million coins. In Primecoin the reward is always 999 divided by the square of the difficulty levels. This can be scooped potentially infinite number of coins.
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