The Proof-of-Cooperation Blockchain based Currency
FairCoin is a digital currency supported by a global cooperative grassroots movement.
With the support of Fair.Coop, FairCoin implements fair value exchange on a global level. By implementing the Proof-of-Cooperation innovation in 2017, FairCoin will become the most ecological and resilient cryptocurrency.
Ecological: very low power consumption for transaction control
Safe: Certified Validation Nodes
Fast: transaction confirmation each three minutes
Ethical: supports fair business values
Future Safe: some blockchain parameters are adjustable by design
Strong: high commitment by several cooperatives worldwide
Proof-of-Cooperation is the unique consensus algorithm developed for FairCoin. In contrast to other cryptocurrencies and starting in 2017, FairCoin does not use any mining or minting functionality any more, which are both competitive systems. Block generation is instead performed by so-called certified validation nodes that cooperate to secure the FairCoin blockchain.
In the blockchain value can be transferred without the need of a central authority. Transactions are validated by all participating nodes which follow the same consensus rules and thus maintain the integrity of the blockchain, which is the common and immutable database for all transactions. Two technical methods are widely used to prevent fraud like double-spending:
Proof-of-Work requires miners to solve a mathematical puzzle. The winner is "mining" Bitcoins. Investors have built big computer farms, that compete for the challenge. Altogether, they consume hundreds of Megawatts (link is external) electricity.
Proof-of-Stake asks users to prove ownership of a certain amount of currency. Minting new coins based upon the number of coins, or “stake,” you hold. But Proof-of-Stake may be abused by those who hold enough coins. As there is little cost in trying to cheat, rich nodes could be slowing down the transactions so that the network gets unusable. Therefore Proof-of-Stake is usually combined with Proof-of-Work in a ratio like 5:1, so this method still would require a lot of energy.
Proof-of-Cooperation does not implement any mining or minting functionality, which are both competitive systems. Instead, certified validation nodes (in short CVNs) cooperate to secure the network. Proof-of-Cooperation will be introduced with FairCoin2 in 2017, whilst keeping all balances from the old FairCoin1 network.