Peercoin is one of the first cryptocoins to have been developed after Bitcoin. Released in 2012 and based a lot on Bitcoin, the altcoin has become the fourth most successful cryptocoin in the market. The major feature that sets Peercoin apart is that it uses a hybrid proof-of-stake/proof-of-work system. This was done to address vulnerabilities that could occur in a pure proof-of-work system. The main problem is that there is a risk of attacks on the network. It can result in a monopoly on mining share. The hybrid system stops this from happening.
The Peercoin mining process should be familiar to anyone who has mined Bitcoin. This is because it uses the same algorithm as Bitcoin which is SHA-256. This means the same equipment that you use for Bitcoin mining can be used for Peercoin mining. The process is also pretty similar.
You start out by getting a Peercoin wallet. Download the wallet and synchronize it with blockchain to get your wallet address. You’ll need to do that to start mining. You can use GPU or ASIC rigs when Proof-of-Work mining.
With the higher difficulty of mining nowadays, it is best to join a mining pool. This allows you to pool resources with other miners to get better results. Look around for a Peercoin mining pool and sign up for one, Just follow the instructions before pointing your mining software to start your mining efforts. If you wish, you can select multicoin pools so that you can mine multiple cryptocoins.
Besides Peercoin mining, you can also start using the proof-of-stake system. With this method, new coins are generated based on the holdings of individuals. For example, someone holding 1% of the currency will generate 1% of all proof-of-stake coin blocks. The result is that it can be very expensive to take control of the network, since it would mean a person needs to own 51% of all Peercoins. Creating Peercoins from Proof-of-Stake is called minting and is a pretty easy process.
To start minting, you will need to get a starting stake. Buy some Peercoins and send them to your wallet to get interest. There is no specific hardware required for your computers to start minting. Minting earns you at least 1% annually. Peercoins are first eligible for minting 30 days after they have been transferred. After 90 days, their chance of success in minting is maximized. The more you mint, the bigger your earnings.