What Is Primecoin
The entry of cryptocurrencies in 2009 was a game changer in the world of finance. But the blockchain technology soon spread to other areas such as management of medical records and gaming.
Every new coin entering the market has been building on the previous one’s successes to help advance the blockchain niche. One such coin is the Primecoin.
Primecoin is a decentralized and peer2peer cryptocurrency designed to utilizes a unique algorithm that searches and verifies only the prime numbers. This means that though it is a proof of work cryptocurrency such as Bitcoin, it is fundamentally different in the way it runs.
- A closer look at Primecoin
Primecoin was created in 2014 by Sunny King, a pseudonym associated with the development of another coin referred to as PPCoin. The same team is also associated with the development of proof of stake (PoS) algorithm.
The cryptocurrency’s symbol is the Greek letter psi (Ψ). The letter was selected as part of the recognition of Riemann because it symbolizes the Riemann zeta function.
If you check closely, there is a rendering used in Primecoin-Qt Windows setup. The horizontal bar helps to standardize the coin with the currency symbol convention and also symbolize the highest portraits of mathematics, Reimann.
- The price performance of Primecoin
The price of Primecoin differed from the trajectory assumed by other coins such as Bitcoin in 2017 and 2018. However, its highest mark came early in November 2013 as others such as Bitcoin and Ethereum achieved theirs towards the close of 2017 and early 2018.
When Primecoin entered the market in July 2013, the price was $0.2. Then, it moved up to $0.8 in the subsequent week before taking a bearish trend to $0.2 toward the close of September. From November 2013, the price took a bullish trend culminating to $7.27 on November 30th, 2013.
The positive price growth did not last long. The Primecoin price took a downward trend after the 30th November peak, to reach a low of $0.7 in April 2014. The downward trend continued and pushed the price to $0.02 in April 2015. This low price persisted through 2016 and the first quarter of 2017.
Interestingly, the growth of Primecoin was relatively small towards the close of 2017. Indeed, it defied the bearish trend that many coins took between January and May 2018. In May 2018, Primecoin experienced a peak in price when it hit $3.4. Then, it dropped sharply to reach $0.5 in early October.
What is the problem that Primecoin Solves?
The use of cryptocurrencies heralded a new era where people could run transactions on a peer2peer basis. However, the blockchain networks are still facing serious issues that are making it difficult for mass adoption and growing the blockchain technology. Here are the problems that Primecoin solves.
- Scalability issues
While the decentralization introduced by blockchain networks is one of the technological milestones of recent time, it is not without its own share of challenges. For example, the Bitcoin network requires about 50% of the nodes to agree when running transactions or voting on issues. This makes the process slow.
A closer look at some of the top cryptocurrencies in the market today reveals that they can only handle very few transactions. For example, Bitcoin can only handle 7 transactions/ second, Bitcoin Cash has a maximum capacity of 61 transactions/ second, and Stellar can only manage a maximum of 1000 transactions/ second.
When these numbers are compared to the industry leader such as Visa that can handle more than 20,000 transactions per second, it implies that blockchain platforms have a long way to go. Primecoin was created to help narrow the gap by improving scalability.
- Security risks in cryptocurrency networks
When Primecoin was created, cryptocurrency network security had become a serious issue. The most notable attack shocked the cryptocurrency community was the Mt. Gox one that resulted to loss of more than 600,000 Bitcoins.
If you take a more recent case like the Bitcoin Gold attack, it implies that attackers are still working on identifying new methods to steal from unsuspecting clients. Primecoin targets to create a strong system that users can rely on without worrying of losing their coins.
- High energy requirement in standard mining
The energy requirement for mining proof of work coins such as Bitcoin is very high and indeed destructive to the environment. For example, Bitcoin mining alone consumes 32TWH of energy annually. This is the same quantity of power that Denmark requires.
By the year 2020, it is expected that the energy demand to mine Bitcoin will be equal what the entire globe requires today. Primecoin targets to address the problem by adopting a different method of mining that is not energy intensive.
- Centralization of mining
Mining is the process of confirming transactions in a cryptocurrency network for a reward. Most proof of work and proof of stake based coins have become highly centralized.
For example, Bitcoin mining difficulty has grown so much that people can only viably mine with advanced ASICs. However, the ASICs equipment is very expensive such that only the well to do in the society is able to mine and own new BTC.
Even those using proof of stake are no better because the people with more stakes have more chances of confirming transactions. Primecoin targets to make the mining platform level so that more people can be involved.
How Does Primecoin Solve The Problem
To address the above problems, the Primecoin founder and development team opted to take the proof of work consensus algorithm to a higher level. Here is how it works.
- Primecoin’s proof of work algorithm targets only the prime numbers
Primecoin, like other coins, utilizes proof of work mining algorithm. However, it changed the Hashcash function used in coins such as Bitcoin and adopted a different method that searches and verifies specific types of prime numbers.
These prime numbers are the Cunningham chains and bi-twin chains. But why the two numbers only? The development team opted for the two numbers because they are relatively small and can be verified with standard grade processors such as GPUs and CPUs.
The development team also used the length of prime number chains and Fermat’s test to come up with a difficulty formula that would increase linearly as the hashing power goes up. Even with this creative method, King had to work on a method of preventing the same PoW from application multiple times.
The development team opted for a method that requires the origin of prime numbers to be visible by the block header. This requirement helps to guarantee that the solution or every block is unique.
- Prime numbers as a factor of protecting the platform
Prime numbers are very important in cryptography because they are used in key-secret encryption systems. The longer the list of known prime numbers and as the value grows, the security of the respective encryption increases.
Understanding the prime numbers is very crucial in physics and mathematics. If you take a look at all non-prime numbers, you will realize that they can be constructed from two prime numbers. However, a prime number cannot be created from any other number. This principle was used to make the Primecoin more secure than its preceding networks.
What makes Primecoin better than it’s competitors?
By the third quarter of 2018, the number of cryptocurrencies had grown and reached 1600. This implies that the competition is becoming stuffer year after year. Here are some of the things that make Primecoin better than its competitors:
- The Primecoin can be mined using standard GPU and CPU
By adopting the two prime numbers, Cunningham chains, and bi-twin chains, Primecoin effectively solved the problem of centralized mining and made it possible for standard miners. This means that more people can get involved to advance the course of decentralization and strengthen the network.
- The coin has been performing very well in the market
Though the price and market capitalization has not been explosive like that of Bitcoin, it is remarkable. By mid-October 2018, the market capitalization of Primecoin was $12.4 million. This places it well ahead of others such as Bitkan with $11.8 million and Aeron that has $11.3 million.
- Primecoin has been in the market for long and proven to be stable
The fact that Primecoin has been in the market for more than four years is an indication that most of the features have been tested and proven to work. When a new platform joins the blockchain niche, it takes about three to five years before it can be considered stable and reliable.
This is part of the reason why the community around Primecoin has been growing steadily in the last several years.
- The Primecoin project is led by a highly enthusiastic team
The Primecoin platform is led by some of the top minds in the computing and mathematics realms. From the beginning, the team has committed to helping the industry scale the next level.
For example, they were the first to introduce a proof of work algorithm based on prime numbers and proof of stake. Now the community is looking at them for more impressive features to help catapult the coin to higher levels.
How can Primecoin be categorized?
Primecoin is a unique cryptocurrency designed to help give the blockchain niche a new approach. By using a unique algorithm that builds on proof of work consensus protocol, the Primecoin founders were able to advance decentralization and spur the next generation of cryptocurrencies.
However, it is the ability of the team to apply the concept of prime numbers keeping the network secure that has attracted more admiration. People using the network to send value or hold funds can rest assured that their assets are safe from attacks.
What’s Primecoin’s vision on Security?
To win more users and demonstrate value in the market today, cryptocurrencies have to start with security. The cases of attacks such as Bitcoin Gold when it was only a few days old and others such as Mt. Gox sent shivers in the systems of cryptocurrency enthusiasts.
The vision of Primecoin on security is to become the most secure platform in the crypto industry.
To achieve this, the development team adopted the unique proof of work algorithm that searches and verifies specific types of prime numbers. It also uses advanced encryption and regular system updates that help to identify gap and address related issues before attackers can take advantage.
Examples of Primecoin’s use cases / applications
Most cryptocurrencies developed within the first five years of Bitcoin introduction largely targeted facilitating payment without involving third parties. Primecoin was no different. Here are the main use cases of Primecoin.
- Paying for goods and services in stores that accept prime coins. Like Bitcoin or Ethereum, Primecoin is used as a coin for sending value. You only need to identify a store that accepts Primecoin to be able to make a direct purchase.
- Paying transaction fees when sending value on the native network. If you decide to trade Primecoin in the markets such as Bittrex and Binance, the charges can be paid in Primecoin.
- Sending value across the globe. If you are on the Primecoin’s network, it is possible to send value on a peer2peer basis. Note that even if you are in different time zones, the process of sending value is simple, direct, and cheap.
- Trading in the markets. One method of making money using cryptocurrencies such as Primecoin is trading them in the markets. Note that you can only trade the coins in the markets after opening trading accounts and forming cryptocurrency pairs.
- Holding as an investment. If you save cash in the bank, the chances are that a lot of people know about it. This means that in the event of a court battle, your funds can easily be frozen through a court order.
- However, Primecoin is a cryptocurrency network that is decentralized and all users’ details encrypted using the latest technology. It is one way of investing without worrying about third party seizures.
http://primecoin.io/about.php#what-xpm
http://primecoin.io/bin/primecoin-paper.pdf’
https://coincheckup.com/coins/primecoin