If your reading this you obviously know what Bitcoin and cryptocurrencies are and how they are created ... either mining or Proof of Stake (POS). I am going to tell you why I love the hybrid NETcoin which is one of the first to offer creation of new coins by scrypt mining and POS.
NETcoin was created as a hybrid between litecoin and peercoin. NETcoin was one of the first to NOT have a premine. What this means is that the developers of the original coin code made announcements of the coin’s release, and did not mine any coins before the official launch date.
To date the only way to create new NETcoin is to mine with expensive and very high electricity consuming graphic cards (GPU) and ASIC miners OR to "STAKE" on your computer ... Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins he or she holds. This means that the more Bitcoin or altcoin owned by a miner, the more mining power he or she has. The first cryptocurrency to adopt the PoS method was Peercoin.
Now this is where it gets real interesting .... Power consumption on the Bitcoin network alone .... are you ready for it ? .... is a constant total mining draw of just over one gigawatt! ..... meaning at a minimum, worldwide Bitcoin mining could power the daily needs of 821,940 average American homes. That is both irresponsible and unsustainable in today's economic and environmental world we live in. AND its not just the power consumption .. its ALSO the CO2 emissions generated from all the power consumption .... One single coal-powered Bitcoin mine in Mongolia is responsible for 13,000 kg CO2 emissions per Bitcoin it mines, and 24,000 - 40,000 kg of CO2 per hour (the average European car emits 0.1181 kg of CO2 per kilometer driven. So for every hour the Mongolian Bitcoin mine operates, it's responsible for (at least) the CO2 equivalent of over 203,000 car kilometers travelled) ...... With that said .... Mining WILL become a thing of the past, Ethereum is already getting ready to switch to POS. NETcoin will STOP mining at block 2500000. After that any new NETcoin will be generated by STAKE only!
And now here is the thing about NETcoin and POS that makes it stand out from the crowd (if it isn't already) ... NETcoin is the FIRST POS coin to use "FAIR WEIGHT" ... lets look back at the meaning of "POS" again and it says "the more Bitcoin or altcoin owned by a miner, the more mining power he or she has." .... well that just is not fair and the development team decided to implement "Fair Weight" they simply decided to cap the total number of coins that are allowed to count towards the stake weight of any single stake attempt to 100,000 NET. They also wanted to ensure this rule was enforced by the protocol and applied by the peers when validating another users stake attempt. ..The bottom line is this:
If in future a single user or entity manages to obtain tens of millions of NET by any means, their staking weight behaves as though they had just 100,000 NET.
Now I know some of you might be asking why would i have tens of millions NETcoin in one wallet if "FAIR WEIGHT" is capped at 100K NETcoins .... which brings us to yet another benefit of NETcoin .... PIR ( Personal Investment Rate) ... yes you read that right .... Personal Investment Rate!!
Personal Investment Rate is a unique code to NET that helps protect the users, coin, and reward everyone who holds NET and actively participates in securing the Network. With PIR you can earn up to 10%APR just by leaving your NETcoin in your wallet and making sure to open it at least once a month .... why once a month you ask .... That brings us to the final selling point I will talk about today .... OWI ....
Open Wallet Incentive (OWI) is a new algorithm designed by NETcoin core team to provide incentive for NETcoin users to participate in staking more by keeping their wallets open. OWI continues to reward users for their ownership and activity of NETcoin. What you have not heard of OWI? ..... Here is how it works ... Users should stake once each month to earn highest possible rewards. This incentifies running full nodes to increase POS security. The coin reward percentage slows after 1 month of no stake with an aging half life of 90 days.
In the next post about NETcoin I will show you how it has held its USD value compared to Bitcoin and show how NETcoin is a great as a storage of value with fast transactions and low transaction fees.