Blockchain-based permacoin system may replace torrentsPermacoin as a cryptocurrency has long been a mere concept in a white paper. It might be considered a ‘useful’ cryptocurrency, as mining capacities in Permacoin network are utilized not only in issuance of new coins, but in data storage.
Initially, the permacoin concept was conceived by five specialists from Microsoft Research, University of Maryland, and Cornell Tech.
“We propose a modification to Bitcoin that repurposes its mining resources to achieve a more broadly useful goal: distributed storage of archival data. Unlike Bitcoin and its proposed alternatives, Permacoin requires clients to invest not just computational resources, but also storage. Our scheme involves an alternative scratch-off puzzle for Bitcoin based on Proofs-of-Retrievability (PORs). Successfully minting money with this SOP requires local, random access to a copy of a file. Given the competition among mining clients in Bitcoin, this modified SOP gives rise to highly decentralized file storage, thus reducing the overall waste of Bitcoin,” reads the project’s conceptual whitepaper, “Permacoin: Repurposing Bitcoin Work for Data Preservation”.
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