Primecoin

Domain: Finance

Problem identification: To avoid the waste of resources involved with PoW protocols.

Why Blockchain: 

To avoid the necessity of trusting a centralized banking system.

Functional Description

Primecoin proposed to replace the PoW puzzle in Bitcoin by a puzzle of searching three types of prime number.

Consensus mechanism used

  • Proof of Useful Resources (PoUS)

Current status

  • Market cap approaching $ 1 million.

Focus point commentary indicating the value of the case study in relation with learning modules

Learning Modules Focus Points

Consensus Presents a use case of the PoUS consensus mechanism

Limitations:

  • The verification stage of the Primecoin puzzle violates the principle of soundness in non-interactive ZKP. 
  • The Primecoin puzzle does not simulate a random distribution for leader selection.

Alternative Approaches:

  • Nooshare
  • Permacoin

References

  1. Fanning, K., & Centers, D. P. (2016). Blockchain and its coming impact on financial services. Journal of Corporate Accounting & Finance, 27(5), 53-57.
  2. -S. King, “Primecoin: Cryptocurrency with prime number proof- of-work”, July 2013.
  3. -Website: https://primecoin.io/ 
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