NeuCoin: the First Secure, Cost-efficient and Decentralized Cryptocurrency
Kourosh Davarpanah, Dan Kaufman, Ophelie Pubellier

TL;DR
NeuCoin is a secure, cost-efficient, and decentralized cryptocurrency that improves proof-of-stake security and addresses common criticisms, offering an alternative to proof-of-work systems.
Contribution
NeuCoin introduces enhanced proof-of-stake mechanisms that increase security and decentralization, addressing key flaws and objections of existing proof-of-stake cryptocurrencies.
Findings
NeuCoin incentivizes continuous staking with higher rewards.
It abandons coin age in the mining formula for better security.
NeuCoin effectively counters 'nothing at stake' objections.
Abstract
NeuCoin is a decentralized peer-to-peer cryptocurrency derived from Sunny King's Peercoin, which itself was derived from Satoshi Nakamoto's Bitcoin. As with Peercoin, proof-of-stake replaces proof-of-work as NeuCoin's security model, effectively replacing the operating costs of Bitcoin miners (electricity, computers) with the capital costs of holding the currency. Proof-of-stake also avoids proof-of-work's inherent tendency towards centralization resulting from competition for coinbase rewards among miners based on lowest cost electricity and hash power. NeuCoin increases security relative to Peercoin and other existing proof-of-stake currencies in numerous ways, including: (1) incentivizing nodes to continuously stake coins over time through substantially higher mining rewards and lower minimum stake age; (2) abandoning the use of coin age in the mining formula; (3) causing the stake…
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Taxonomy
TopicsBlockchain Technology Applications and Security · Distributed systems and fault tolerance · Security and Verification in Computing
