Peercoin - Definition from the Hotspot Shield Encyclopedia
Peercoin is a cryptocurrency that is peer to peer and uses both a proof of stake and a proof of work system. Peercoin uses much of the Bitcoin source code and its creation was inspired by this main digital currency.
Peercoin does not have a limit to the number of coins that can be created unlike Bitcoin and Litecoin, however to ensure a steady flow of currency, the inflation rate will be reduced in later years to just 1%. Transactions are completed through the peer to peer network, and the SHA-256 proof of work scheme is used for mining. Peercoin differs from Bitcoin as it aims to address the large energy consumption required to mine Bitcoins and also introduce a steady level of inflation.