Altcoin News Neucoin Releases Whitepaper on Proof of Stake, Looks to Improve on Current Designs
Nigel Dollentas · @https://twitter.com/nigeldollentas | Apr 17, 2015 | 15:00
Neucoin recently released a white paper arguing that Proof of Stake (PoS) is superior to Bitcoin’s high costs, mining centralization, and ever-increasing costs of bitcoin mining hardware.
Also read: Is Neucoin the Strongest Altcoin Opening in 2015 Thus far?
Neucoin’s white paper also highlights the scalability of PoS vs. PoW. The paper argues that PoW transactions need to increase 100 times in order to maintain the current incentive for bitcoin mining.
“We designed NeuCoin’s high PoS rates to reward all the early investors: they enable the development of NeuCoin’s first utility and as such are the cryptocurrency’s most valuable supporters!One of the most worrying aspect of Bitcoin to us is that its low transaction fees rely on extremely optimistic assumptions in terms of transaction volume or price increase.We designed NeuCoin’s PoS rates so transaction fees stay low in the long run in any case.”
Neucoin put significant effort into this paper, writing a hefty 39 pages with a 5-page abridged version. In addition to arguing PoS’ superiority over POW, the paper explains how Neucoin’s unique blend of POS fixes all the commonly cited vulnerabilities of POS.
Neucoin designed the whitepaper as a “fact-based debate” allowing anyone to “ make comments, suggest edits, and point out potential flaws in the paper.” Neucoin will also incentivize users with Neucoin Bounties, which serves to incentivize users to improve the whitepaper, and to get people talking about Neucoin all at the same time.
“The brilliance of proof-of-stake is that it turns all coin owners into security providers, and requires any would-be attacker to purchase a large amount of the currency to attempt an attack, which would be an attack on his own wealth. Daniel Kaufman, co-founder of NeuCoin.”
Neucoin recently added two new technical strategic advisors to its team, Peercoin core developer Michael Witrant and Patrik Stymne, chief systems architect and co-founder of King, a company most known for Candy Crush Saga.
While the paper mostly endorses POS, it does recognize the validity of using consensus algorithms that are based on trusted nodes like the algorithms used in Ripple and Stellar. The white paper argues that while it has similar advantages to POS, the consensus algorithm “requires users to trust third parties and beyond that, depends on trustworthy third parties to support the network by operating nodes, which may or may not happen over time.”
For more information, visit the full whitepaper online.
Images courtesy of Neucoin Team
Do you agree that Neucoin’s brand of PoS is superior to PoW? Let us know in the comments below!
