FairCoin Activates World's First Cooperative Blockchain - Introducing the Proof-Of-Cooperation Consensus (PoC)


Blockchain Technology has revolutionized our world - and now, it gained another revolutionary feature.

FairCoin has just launched world's first cooperative Blockchain - introducing the Proof of Cooperation (PoC) consensus!

Traditional cryptocurrency mining takes an enormous amount of energy - which makes it not only expensive, but also takes a toll on the environment.
Faircoin operates on a completely different system - it calls itself the "cooperative version of Bitcoin".
There is barely any energy needed to confirm transactions, and the use and distribution of FairCoin are based on social justice and equality criteria.


Proof of Cooperation (PoC) consensus

Usually, for example within the Bitcoin network, so-called miners validate the transactions by solving complex mathematical problems. Whoever solves the problem and validates the block receives the Bitcoin reward.
This is why big cooperations have built huge Bitcoin mining farms, consuming hundreds of megawatts of electricity.

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Proof-of-Cooperation does not have this mining functionality.

Instead, there are certified validation nodes (CVNs) which cooperate to secure the network.

How does the proof-of-cooperation algorithm work? The consensus rules determine which CVN has to create the next block. Each CVN approves that CVN by digitally signing a piece of data which contains its unique ID. After the respective CVN received all the necessary signatures, it takes pending transactions and forms a new block which is then stored in the immutable and distributed blockchain database.

There are no rewards for block creation.

Only a very small fee is awarded for any block creators to compensate for the energy and bandwidth costs of running a CVN.
So even if the network grows and there are countless more CVNs, the power consumption will still be low since a CVN can run on a Raspberry 3 that only consumes a few watts. Nothing compared to a large Bitcoin Miner.

"Two years ago I became aware of the enormous demand for energy and the concentration of power around some pool operators in the Bitcoin network. I thought that there must be a better way to do it. Why not try to let nodes co-operate instead of competing to generate blocks?"

-Thomas König, lead developer of FairCoin

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FairCoop Ecosystem

FairCoin is a part of a cooperative Ecosystem that aims to create a fair economy.

Part of this ecosystem are payment systems (FairPay), savings and donation tools (FairSaving, FairFunds), a system to sell and shop online (FairMarket), and even an opportunity for self-employed business owners (FreedomCoop).


Features / Use cases

FairCoin is not only a cryptocurrency, it's one element within a system that enables users to send transactions between continents, countries, users, or even between ordinary bank accounts.
FairCoin tokens can be sent to other FairCoin wallets, exchanged to other currencies instantly or withdrawn in Euros/Dollars at an ATM. There are also point of sale systems for merchant users and prepaid cards.
Due to the minimal / zero transactions fees, FairCoin is one of the best cryptocurrencies to be used for micropayments.

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Conclusion

FairCoin introduces a new kind of Blockchain - world's first cooperative Blockchain.
The technology has been in the works and was successfully implemented on July 18. The revolutionary new Proof-of-Cooperation consensus doesn't have a mining mechanism, but instead works with CVNs who secure the network cooperatively. This way, the energy consumption is extremely low!
FairCoin is part of a whole ecosystem by FairCoop, which aims to create a fair economy for both the users and the environment.

Opinion

In my personal opinion, this project has a lot of potential and I appreciate the revolutionary idea and the totally different approach. It takes a lot to create an entirely new technology like this one - and the implementation was successful!
I'm excited to see how FairCoin and the Proof-of-cooperation consensus will develop in the future.


What do you think about FairCoin and its new type of cooperative Blockchain ?




Images: 1, 2, 3, 4, Sources: 1, 2, 3, 4



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How secure is it?

Very cool video by Fair coin! Not sure how this is going to be different than Ethereum's Casper release or Dash's Master Nodes system of governance and staking?

I think this is an interesting idea but there are already too many coins.

I agree with you. Too many coins, hard to know them all.

Thanks for the info!

a good and informative post

Very nice concept. Sound similar to steem.

a good and informative post

@sirwinchester -Looks like the global ill-effects of massive energy conversion will be averted by Faircoin's cooperative nodes technology unlike the competitive note technology of bitcoin. None of the Bitcoin's benefits over FIAT currencies are lost in the process in Faircoin either. This sounds like a winning solution for me. I will watch the progress of Faircoin with interest. Hope this interesting technology does not sink in the sea of Altcoins out there. Thanks for this heads up. Upvoted.

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Amazing project, we have to say thank you to @enric for all his effort

I was in AureaSocial few weeks ago. It was my second visit. This to buy some Faircoin from local node. It is an awesome anarchist, community project based revolving around Faircoin and Faircoop.
Haven't you just been to Barcelona with soldier and mrs.steemit ?

I'm still a little unclear what a person does to provide Proof-of-Cooperation. Is it just like they are staking?

Everyone can set up their own certified validation nodes (CVNs), for example with a simple raspberry

So I assume that it is just set to Stake coins or do you not have to have a "stake" to do the certified validations?

Seems like a good idea, however, if not everyone can make a profit off of it, it will fail. Greed is cemented into the economy. Greed is never going to go away, so in order for these "great idea" coins to make it, they will have to satisfy the greedy as well.

I did not know this, thank you for the information. I follow you

Great post , thank you so much for sharing this amazing content

Do you believe in this System?

I think the idea has a lot of potential. We'll see how the system and the consensus technology will develop in the future

To be perfectly honest I have little or no clue how cryptocurrencies work, but fair coin at least what I read it here souns like good idea. People need alternative to fiats, what I think it would be necessary to work even better is system which implement alternative payment methods to "ordinary" people who have no clue, just like me, about technicalities of crypto. Something like direct way of payments/ cards which you can use where ever you want.

Will you leave your money in FairCoin?

Yes, sure. I leave almost my entire money in Faircoin. I can exchange fair easily to btc or Eur when I need.

Sounds similar to how Steem's Delegated Proof of Stake works.

Great post

In my opinion, the idea is great and has the potential to grow up. Let see further the response of people☺☺

I don't have a problem with mining energy consumption if important problems are being solved but I suspect that most of the time it's pretty abstract stuff that doesn't really achieve much in the real world. So yeah, in that case bring on the low-power mining alternative...

I really appreciate helpful posts like this (cooperative blockchain? Hmmm) and I look forward to seeing more of your content in the future. Hoping we can connect and continue to evolve and learn from each other! Remember, be yourself, because nobody else does it better -- Full #Steem ahead @sirwinchester :)

Much ❤
@Tayken

Sounds almost like PoS with a touch of Steem...

looks good if it supports local charities and causes

Did I read eco-friendly? How can it not be? Isn't it completely digital?

i love bitcoin really

Thank you for this information...Iam Vote n resteem this pos

Faircoin? Eco-friendly alternative? Fair enough. I wish it speed and traction.

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For me it is one of the most reliable and safe crypto, overcoming Bitcoin as a medium of exchange or reserve of value. I know btc from its very early stages and now I am putting all my love in Faircoin. Thank you for your very nice article.

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Too many coin to know by this time we dont even know which one is the best but What I did was stick to the most performed currency I mean it's been in a market for quite sometimes especially the top 20 or 30 crytocurrency . Good information sirwinchester.

Thanks for writing - I like the sound of faircoin and if coins like Astrocoin and chaincoin can be pumped and sustained then I am sure Faircoin can to!