Swiscoin is a crypto-currency implemented entirely with open source specifications and software which relies entirely on a peer-to-peer network for both transaction processing and validation. We will briefly cover how this works (for more technical details, you can see the links at the end of the article), but we are primarily going to focus on the Swiscoin economy itself.
So, how does Swiscoin mining secure the network? Like Bitcoin mining, swiscoin uses proof-of-work which makes mining a costly process in terms of both time and energy.
In order to send Swiscoins, transactions must be included in a block. Swiscoin miners then verify these transactions through proof-of-work. The miners check incoming transactions against previous transactions on the blockchain. If no double-spends are detected, the miners create a block with new transactions and add it to Swiscoin’s existing blockchain.
Each new block is then sent to nodes on the network. The nodes use the miners’ work to continue to verify and transmit transactions across the network.
As mentioned earlier, Swiscoin mining requires vast amounts of time and electricity, which isn’t cheap. The block reward is paid to miners for each block mined, which provides an incentive for miners to contribute their hashing power to the network.
The swiscoin blockchain is a public ledger of all swiscoin transactions. Unlike traditional payment systems like PayPal, swiscoin is decentralized and distributed. Its public blockchain can be independently verified by anyone.
No old transactions can be erased, and, likewise, no counterfeit or fraud transactions can be created without network consensus. Any attempt to change network rules would create a fork in the blockchain.
One of the main advantages with cryptocurrencies is that the currency supply can be programmed and distributed at selected intervals. This differs from gold, silver and other commodities, which often see mining companies mine at faster rates if price increases.
The Swiscoin mining difficulty is perhaps one of swiscoin’s most important features. It is an algorithm that is updated based on total network hashing power to ensure that Swiscoin blocks are generated on average every 60 minutes.
You can use one of the many swiscoin mining calculators to determine the potential profitability of hardware. swiscoin mining profitability will depend on the price of swiscoin, hash power of your hardware, electricity costs, and hardware efficiency.
swiscoin’s creator, Charlie Lee, essentially copied Bitcoin but change a few parameters. Lee wanted faster confirmations, so he set swiscoin’s block target time to 60 minutes instead of Bitcoin’s ten.
Lee also designed the block reward so that it halves every 840k blocks. Originally, 12 swiscoins were issued in each new block. The block reward eventually becomes so small that there can only be 840k swiscoins in existence. There are many websites that track and estimate block reward halvings.
