The ReddCoin cryptocurrency has a specific application according to the developers' idea. It is designed to implement micropayments in social networks and is integrated with social networks. ReddCoin software code is largely inherited from Litecoin. However, unlike Litecoin, which uses the Proof of Work and mining algorithm, ReddCoin relies on the Proof of Stake Velocity (PoSV) algorithm to validate transactions. A total of 29.6 billion ReddCoin units may exist. The project has been successfully working and developing since 2014, having its loyal supporters. The unique algorithm of this cryptocurrency provides immediate reliable protection against both mining on ASIC and possible blockchain forks.
Which problems of the PoS algorithm does ReddCoin solve?
PoS is a product of the number of coins for the time of their storage. Blockchain nodes providers using the PoS algorithm do not need to spend non-refundable resources on mining. At the same time, nodes provider checking transactions are securely protected from attack. The attacker has a choice: either to increase the number of coins by buying them or to increase the storage time by reducing the frequency of his attacks. An important disadvantage of PoS remains the difficulty to distribute the original coins fairly. In addition, the lack of coins as a means of calculation does not necessarily lead to their high value. Since cryptocurrency most often has an open-source code, anyone can make their own, improved version of the coin using the PoS algorithm. Because of this, the potential advantage of a coin deficit is quickly reduced to zero. Wallets on which PoS coins are stored operate as a complete cryptocurrencies node network. However, the interest for keeping the coins is charged both for those coins, whose wallets are online and those in offline wallets. It turns out that users do not have enough incentives to maintain the functionality of the full ReddCoin node. Profits from online and offline coin storage are the same, and nodes management, permanently connected to the network is not always secure.
What are the features of the PoSV algorithm version 2.0?
The basis for the PoSV algorithm is the already proven and proven Proof-of-Stake (PoS) algorithm. The main drawback of PoS is that it does not take into account the speed of money turnover – high speed of money turnover indicates a healthy economy and stable financial system. PoSV is an algorithm that takes into account both ownership (Stake) and activity (Velocity). Unlike Bitcoin and many other deflationary cryptocurrencies, ReddCoin has inflation of 5% per annum embedded in the algorithm. This measure should also help accelerate the turnover of money.
How do the ReddCoin public crypto nodes work?
Each installed ReddCoin wallet becomes a public crypto node running on the PoSV algorithm. Storing ReddCoins in your wallet brings the owner about 25% per annum in this cryptocurrency. The algorithm is designed in such a way that storing coins for more than two months in a row is no longer profitable, and free nodes have to run the coins in circulation again. Software wallets for Windows, MacOS, and Linux are available for download on the project website.
How to use ReddID?
ReddID works as a browser extension linking the ReddCoin's free nodes and various social networks. Each user of ReddID gets a simple ID linked to a wallet number. To translate ReddCoin to any user, it is enough to know only his ReddID. The same ReddID is used in various social networks, and the number of supported networks is constantly growing. For an extra fee, you can create a ReddID that matches your name or the domain name of your site.