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Peercoin, also known as PPCoin or PPC, is a peer-to-peer cryptocurrency utilizing both proof-of-stake and proof-of-work systems.
Peercoin was inspired by bitcoin, and it shares much of the source code and technical implementation of bitcoin.
Peercoin's major distinguishing feature is that it uses a hybrid proof-of-stake/proof-of-work system. The proof-of-stake system was designed to address vulnerabilities that could occur in a pure proof-of-work system.
With a proof-of-stake system, new coins are generated based on the holdings of individuals. In other words, someone holding 1% of the currency will generate 1% of all proof-of-stake coin blocks.