Primecoin 101 Review: Here’s What You Need to Know
What is PrimeCoin?
PrimeCoin is an innovative digital currency that introduces a proof-of-work technology based on scientific computing. The currency’s proof-of-work technique is an innovative feature based on prime numbers search.
As a result, PrimeCoin’s proof-of-work not only ensures security for the network but also provides a potential scientific value as well.
As with Bitcoins, it facilitates instant payments to every corner of the globe.
The digital currency employs the use of a peer-to-peer technology to guarantee decentralization thus ensuring that money issuance and transaction management are collectively handled by the network.
PrimeCoin Symbol – What Does It Represent?
PrimeCoin features a Greek letter psi (Ψ) that symbolizes the Riemann zeta function. The symbol serves as a tribute to Riemann, a 19th-century mathematical giant hailing from northern Germany.
According to PrimeCoin’s founders, the symbol’s horizontal bar standardizes to the conventions governing currency symbols. Moreover, psi (Ψ) is still a highly regarded math jewel.
What are the Features of PrimeCoin?
For its proof-of-work algorithm, it uses prime chains comprising of Cunningham chains and bi-twin chains. The PrimeCoin system is designed to enhance the verification of work by all nodes on its network.
Other features of the PrimeCoin network include;
1. No predefined maximum coin supply
Unlike many other alternative currencies, it does not have a hard-set maximum supply of coins. Instead, the number of coins per block released is always equal to 999 divided by the square of its difficulty.
Ultimately, the number of coins minted will largely depend on its adaptation by the mining community, improvements in its mining algorithm and Moore’s law.
2. Faster transaction confirmations
On average, the blocks are generated 8-10 times faster than that of Bitcoin. This means that the confirmation of PrimeCoin transactions is 8-10 times faster than Bitcoin’s.
3. Nature of prime numbers’ distribution determines PrimeCoin’s scarcity
Whereas nearly all cryptocurrencies existing today define their scarcity through predefined values in their source codes, it uses a mathematical property based on the natural occurrence of prime chains in whole number sets and a simple function to define its scarcity.
4. More frequent difficulty adjustment
After every block, the difficulty of the PrimeCoin protocol gets adjusted. This difficulty ensures that a target of one block is generated every minute. On the other hand, bitcoin adjusts its difficulty after every two weeks (approximately 2,016 blocks).
What is PrimeCoin mining?
PrimeCoin mining is a process in which the currency’s transaction are verified and added to the blockchain digital ledger.
The process involves competing with other miners in solving complex mathematical problems with cryptographic hash functions associated with transaction data containing blocks.
Currently, the miners are CPU-based. This means that other coins whose mining is GPU-based can be mined together with PrimeCoins on the same computer. Also, as a CPU-mined coin, there’s no need for a specialized hardware to begin mining PrimeCoin.
How to Buy PrimeCoin (XPM)?
Like other new cryptocurrencies, there’s no real quick way of directly converting your cash into PrimeCoin regardless of whether you’re using USD, GBP, Euro, Credit Card and so forth.
To purchase PrimeCoin, you’ll need to convert your fiat currency into the major cryptocurrencies, preferable ETH of BTC, and transfer it to an exchange that allows exchanging BTC or ETH with XPM.
To get the coins into your wallet; you’ll have to follow a 2-step process.
1. Buy ETH or BTC from a reputable exchange (preferable Coinbase)
2. Transfer your newly purchased ETH or BTC to an exchange supporting XPM.
These exchanges include; Cryptopia, bter, NovaExchange, and Poloniex.
Buying ETH or Bitcoins from Coinbase
Coinbase is virtually the largest and most trusted exchange in the world. To gain access to it, you’ll need to sign up if you’re a new member.
Once you have an account with Coinbase, you can access the exchange’s instant buy feature. Find a funds deposit method that suits you and transfer your fiat to Coinbase.
Funds often become available as soon as payment gets received. Nevertheless, your payment option and country of residence may affect the speed of funds availability. Customers using SEPA transfers (in Europe) may wait at least 3 days to receive purchased BTC/ETH deposits.
If you’re a fully verified member, Coinbase allows you to buy up to $1000 worth of BTC or ETH every week. If you’re yet to be verified, Coinbase sets your weekly buy ceiling at $100.
Exchanging BTC or ETH for PrimeCoins
When you’ve transferred your BTC or ETH to an exchange supporting XPM, head to the exchange tab and place a buy order on the BTC to XPM or ETH to XPM exchange. At press time, it was trading at $0.92.
Keep in mind some exchanges may have minimum buy amounts so be sure to check before starting. Once done, send XPM to your secure wallet (Trezor, Electum, Exodus, Ledger).
What are the Advantages of PrimeCoin?
1. Very Fast Confirmations
As aforementioned, a typical Bitcoin transaction takes 10 minutes to confirm (in practice- 8 minutes). On the other hand, the transactions are confirmed at the rate of one per minute. This allows faster, and more secure transactions.
Whereas Bitcoin’s six transactions may take up to 50 minutes, PrimeCoin’s only take a surprising 6 minutes! Overall, the two are worlds apart when it comes to transaction speed.
2. PrimeCoin Network is Energy-Multiuse
PrimeCoin’s proof of work algorithm not only provides minting and security to the network but also generates special forms of prime number chains crucial for mathematical research. As a result, the network effectively becomes an energy-multiuse.
How Can I Sell PrimeCoin (XPM)?
Selling XPM is pretty much like a flip of the buying process. You can exchange your XPM for another digital currency, and then exchange that digital currency for USD on exchanges supporting USD withdrawals.
Although this option arguably involves more steps, it does leave you with a number of exchanges to choose from.
In simple terms, you’ll need to convert your PrimeCoin to BTC by placing an order on the XPM to BTC exchange. Once exchanged, send your BTC to an exchange that supports USD withdrawals. You can then withdraw the USD directly to your bank.
DisclaimerThe writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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