Shared by the editor, what currency is Pegnet? First of all, this currency is relatively new because it was recently introduced in the middle of 2019, but its community is growing rapidly every day. Pegnet uses a Proof of Workload (PoW) protocol that is different from most PoW based cryptocurrencies today. At the same time, Pegnet is also considered as a stable currency, but it has some unique functions that really make it unique. So what exactly is Pegnet? How does Pegnet mine work? The following content will answer for you.

1、 What is Pegnet?

Pegnet is a stable currency based on workload proof, but it is different from other stable currencies in that it is linked to more than 30 kinds of synthetic assets, of which 14 are the largest legal tender, 14 are the main cryptocurrencies, and the last two are silver and gold This enables Pegnet users to use their alpha wallet to trade these 30 assets on the network at a very low cost of about $1/10.

Pegnet addresses the need for counterparties because of the fact that you are in your own wallet and do not deal with anyone else. There is no need to send a transaction because you are not trading with others on the order book because it is all the value in your own wallet. Instead, you deal with the oracle/miner in your wallet to decide which assets you want to hedge. This makes pegnet an extremely unique thing that has never been seen in the cryptocurrency field.

The project is open source, but the team behind the currency development is mainly composed of members from the Factom and Ethereum development community. Pegnet uses the Factom chain as its consensus, making it a layer 2 protocol and simulating the decentralized application (Dapp) running on the Factom blockchain. In addition, Pegnet is part of the fair release, without ICO, Airdrop or Premine.

2、 How does Pegnet mining work?

As far as the working principle of Pegnet mining is concerned, it is very different from Bitcoin or Ethereum mining in many aspects. However, it does follow the same 10 minute block time structure as Bitcoin, but its power consumption is much lower.

Pegnet uses LXR working hash algorithm to prove. This hash algorithm is a central processing unit (CPU) mining, because most of its memory is bound with 2 GB memory as a minimum requirement. In fact, it is said that this algorithm only consumes 10% of the CPU normally used when idle, which makes it very environmentally friendly. This means more contact with ordinary people and truly decentralized currencies.

The working principle of Pegnet mining is to use the miners on the network as the oracle, and report the prices of these 30 main synthetic assets every 10 minutes. So the network basically gets the average price of these synthetic assets from miners every ten minutes. This is one of the main reasons to go back to the project and involve workload proof to ensure that the oracle machine remains true.

The Pegnet Pow agreement requires miners to first submit asset prices through hashing power. For those who are new to Pow, it is basically a method that makes data fragments difficult to generate but easy to verify. The next miners on the network are graded according to their proximity to the middle price. Therefore, in order for miners to get rewards, they should not only provide good data, but also provide accurate data. This protects the network by ensuring that the price is correct.

Unlike Bitcoin mining, where only lucky miners or ore pools can obtain block rewards, Pegnet rewards the top 25 miners, who use workload proof to correctly verify the prices of 30 assets. The native token awarded to the miners is called Peg, which is used as arbitrage in the system. At present, each block has 5000 pegs to reward miners, and 5000 can be used by arbitrageurs for conversion. Therefore, a predictable supply of 10000 Peg for 10 minute blocks per block.

summary

The above content is the explanation of Pegnet's meaning and the introduction of its mining operation mode. Part of PegNet's goal is to make it as open and inclusive as possible to anyone who owns commodity hardware. PegNet is worth studying and understanding because it is an open system. You can mine PEG and convert your tokens into linked assets. There is no counterparty risk and no slip in the conversion process.