Sunny King, the developer of Peercoin and Primecoin, is developing a new cryptocurrency algorithm called Supernode Proof-of-Stake (SPoS). Considering King has been called “the single most original altcoin developer out there” by Ethereum’s Vitalik Buterin, it may be worth looking into this new algorithm.
SPoS expands on PoS, which is when a user holds coins in their wallets and lets them stake to receive freshly-minted coins. This is because computers running PoS cryptocurrencies maintain the network, in the same way miners maintain a Proof-of-Work (PoW) network. PoS is widely embraced because it is more energy efficient than PoW, and is being used by numerous popular cryptocurrencies. The first PoS cryptocurrency was Peercoin, which was launched by King in 2012.
With PoS, anyone with a computer and an internet connection can stake and mint new coins. With SPoS, special computers called supernodes will be required. Supernodes will have much higher memory and bandwidth than a normal personal computer, and staking will be concentrated with these supernodes. This is advantageous because the supernodes can process far more transactions than a typical PoS network which uses weak personal computers. King’s goal is to build a platform where millions of blockchains can run simultaneously while maintaining efficiency and cryptographic security.
Essentially, SPoS would lead to cryptocurrencies being scalable like never before. Scalability is an issue that cryptocurrencies have struggled with, especially Bitcoin. Highly-scalable blockchain technology is needed if any crypto is to ever compete with mainstream payment processors like Visa.
It is unclear when SPoS will become public since the supernode hardware has to be released. Virtual Economy Era (VEE) will possibly use SPoS eventually. VEE is King’s newest cryptocurrency and will initially use PoW, PoS, and PoW based on finding prime numbers, which is Primecoin’s algorithm. In the VEE white paper, it says they will consider adding other consensus mechanisms in the future, and perhaps that means they will add SPoS once it is ready.
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