Topic: 100% premine? How does it work? (Read 730 times)

Coin2 - https://bitcointalksearch.org/topic/annc21-coin2-powpos-chainofconflictfps-the-future-of-gaming-is-now-483847

I'm still looking for a fairly distributed PoS coin. Maybe something with Facebook verification or something like that. Does one exist?

U should set block reward to the total coin amount

Yes, you could keep the network running just by yourself. You have a block target time, and a mining difficulty. As the hashrate/mining increases, the difficulty goes up to keep the block time the same. This is why difficulty levels re-adjust.

With a single block difficulty re-target, you would just have to wait until the next block and then the difficulty would drop/increase to the amount of mining hashpower on the network, so roughly each new block is generated based on the block time.

However, if the difficulty level didn't retarget for 1000 blocks, and you suddenly lost a lot of hashpower on the network, it would take a few miners a very long time to mine enough blocks until the next difficulty retarget takes effect, and the coin essentially becomes stuck, and can even die without being "hard forked".

This is exactly what happened to Catcoin during the early days.

like magic for some people

The big problem is insecurity though, because the Proof of Stake approaches that might maybe potentially work to secure a chain no one has yet actually bothered to implement so those who use Proof of Stake are just using the PPCoin method which is not secure, relying upon centralisation and Proof of Work to secure it, and those based on Proof of Work lack the massive dedicated hashing farms that would be needed to even pretend to try, probably not really very convincingly, to secure them.

This the recent wave of 100% pre-mined coins, the so called "IPO scams", opted for something more like Ripple's style of trying to secure their ledgers, though it is maybe yet to be seen whether such approaches actually are secure.

DeVCoin though has managed to maintain a not too horribly shabby hashrate despite only handing out 10% of its coins to miners; but its original intent had been to switch to only giving miners 5% and that intent was never carried forward because even giving an entire 10% of the coins to miners it was still hard to actually get enough miners and some miners still complain that they aren't being paid enough, despite it costing them darn close to nothing to mine the thing.

SInce with pre-mined coins you have to trust who-ever got the pre-mined coins anyway, it mgiht make a lot more sense to use something like Open Transactions than to even bother at all with the overhead cost involved in tryign to secure a decentralised ledger. You have a central party you have to trust anyway, so they might as well jsut run a database or an Open Transactiosn server to run the ledger themselves. Open Transactions provides the signed receipts systems that allow users to prove their transactions so probably Open Transactions would make more sense than e.g, MySQL and such, but all the "exchanges" seem to have no problem attracting users without providing users with cryptographic proofs of all transactions so evidently customers nowadays don't really care about provable transactions.

-MarkM-

There is already a very successful 100% premined coin. Coin2 - https://bitcointalksearch.org/topic/annc21-coin2-powpos-chainofconflictfps-the-future-of-gaming-is-now-483847

A first person shooter is in the works, isnt that awesome? Get to play in the beta testing - https://bitcointalksearch.org/topic/anncoin2-fps-game-beta-44-6pm-pst-554119

Bump, help me please.

Let's say: Is it possible to have a secure premined coin? Also what about very fast transactions? What are the pros and cons?

I'm not even interested in starting yet another litecoin clone, I just neeed to know.
Might launch one just for fun tho, if it won't hurt bitcoin/litecoin.

How will I be able to get an alt coin to have a very fast confirmation time? What are the pros and cons?

Cheers.

I even saw opinions where ppl call it "new era of altcoins"
Really...idk, now, mostly this type of coins are just scam
So how does it work? - Ppl make money, sometimes on both sides..mostly not

http://premineco.in/

i think it is not desirable but it exists

You could keep the network yourself yes but it would not be secure, somebody with more hashpower than you could start injecting false block in the chain to give themselves a lot of the coins.

Tx fees are fees paid to miners when you send money to somebody. Like if you want to send bitcoins you pay a sliver of btc in tx fees so that miners will include your transaction in the block.

But how much miners (power) would such a coin need to handle transactions? Could I keep up the network by myself?
Also, could you please explain how a tx works? I'm not even sure, If I exactly know what tx fees are.

All coins are created in the first block. Miners are awarded just the tx fees. It probably isn't profitable to mine but bagholders mine it to give thier stake more value.

Hi guys, I'm wondering how a 100% premined coin works?
Could someone please explain it to me in steps, as I'm fairly new to "alternate cryptocurrencies".

I might even give you a tip in BTC.

Cheers.