Introduction on the Primecoin
Primecoin is a cryptocurrency. The proof-of-work (PoW) algorithm has existed since the creation of Bitcoin by Nakamoto in 2008 and Hashcash in 2002. This protocol is now regularly used for various cryptocurrencies and serves to maintain a consensus in peer-to-peer networks.
The PoW algorithm of Bitcoin is based on the SHA-256 algorithm. In 2011, Scrypt was introduced as a PoW algorithm for hashing blocks.
Although there were always new approaches to changing the PoW approaches, which were based on scientific calculation methods, these did not prevail. For this reason, the Scrypt algorithm and the SHA-256 algorithm are currently the established algorithms for PoW mining.
In 2013, the founder of Primecoin realized that building a blockchain based solely on primes could be a fitting alternative to the established approaches. As part of his work, he created an algorithm that only applies to primes, allowing both token mining and a higher level of security.
This new algorithm offers similar security to Hashcash, based on the popular PoW approach. This project is now known as Primecoin.
What is Primecoin?
Primecoin is a particularly innovative cryptocurrency, which is based on the principle of cryptography and is controlled by a decentralized mining market. The basic idea for the token was found using the Satoshi Nakamoto Bitcoin white paper.
However, the Primecoin blockchain is distinguished by the use of a different PoW algorithm and considered to be the first cryptocurrency that was developed on a scientific basis.
In addition, the developers also see some advantages. The token offers not only a high level of security and the opportunity to actively participate in the network through mining, but also generates a special form of prime number chains that can be used for mathematical examinations.
Furthermore, the network requires much lower resources than Bitcoin and thus can handle a higher workload with the same computing power.
Primecoin was designed to create a prospering mining market and to put safety first. The values of the network should be comparable to gold derivatives. The last special feature is the fast block time, which was set to only one minute so that the token works ten times faster than Bitcoin.
What Scientific Value Does Primecoin Offer?
The task of the Primecoin network is the search for special prime number chains, which are known as Cunningham chains or bi-twin chains. The distribution of these chains has still not been sufficiently studied and even the simplest chains cannot prove the theoretical infinity. The distribution of primes was one of the most important findings of arithmetic.
The studies of prime chains are a continuation of the work of Riemann and other prime theorists. The investigation should lay a clear focus on the randomness of the distribution, which seems to be anchored deep in the foundation.
It is also important that this study is not only relevant for mathematicians. Riemann’s initial research revealed that the Riemann zeta function and the distribution of primes correlated with each other.
The zeta function is also of great importance for other natural sciences. Thus, the study of the origin of numbers not only has mathematical relevance but can also influence and advance research in general.
The Mining of Primecoin
Primecoin is considered a pure PoW currency and also uses a novel and scientific approach. Fundamentally, for any PoW algorithm, there is no way to reuse the mathematical equation and thus, blocks can never be completed with an identical function.
Therefore, the prime number string must be linked to the header of the hash function. The quotient of this function then becomes a PoW certificate, which prevents duplication.
The block hash; the value of the block header, and the certificate, is validated throughout the network. This means that it is not possible to copy and validate the hash and block values when manipulating the block.
In addition, the adjustment of difficulty in Primecoin is different from other blockchains because it depends on the current chain of primes. In the beginning, this approach was rather rigid, resulting in non-linear difficulty and the security of the network could not be guaranteed. In addition, this approach has equalized the efficiency of the blockchain.
As a result, developers have referred to the Fermat primality test. This ensures a linear increase in difficulty as well as a high level of security within the blockchain.
How Has Primecoin Market Capitalization Developed?
The Primecoin token is traded on the market under the symbol XPM and first appeared on July 11, 2013. Market capitalization reached $51,274 on the first day of trading and as of November 2013, the market capitalization increased to 10 million US dollars. A long-term, correction followed and was broken in 2017.
While the price was $781,301 on February 28, it reached a high of $27.4 million on January 14, 2018. The price per token also rose to a level of 1.24 US dollars. Around 22.4 million tokens were in circulation at that time, resulting in an average trading volume of approximately $100,000. The main trading venue of the Primecoin token is Poloniex, which accounts for more than 82% of daily trading.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.