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Whitepaper

Abstract: Pandacoin is a decentralized electronic cash system that operates on a peer-to-peer network and does not require any central authority. Transactions are processed and verified through a combination of the Proof-of-Stake (PoS) and Proof-of-Work (PoW) algorithms. Under the PoS mechanism, users can earn inflation rewards by holding coins for a fixed period of time. This algorithm prioritizes active contributors to the network and ensures a fair distribution of coins. With a decentralized network of nodes, potential malicious actors would need to purchase a stake before attempting any attacks, which would reward existing users. The PoW algorithm uses specialized hardware for the SHA256D algorithm to mine and distribute block rewards, further strengthening the network's security.

1.Introduction

The Pandacoin network is a decentralized electronic cash system that uses both Proof-of-Stake (PoS) and Proof-of-Work (PoW) algorithms to process and confirm transactions.
To increase security on the network, users must purchase and hold Pandacoin coins for a fixed duration to receive inflation rewards.
The use of both PoS and PoW algorithms ensures the network is secured by hardware and its stakeholders, making it more resistant to malicious entities. As a result, Pandacoin serves as a reliable day-to-day digital currency for e-commerce transactions.
The decentralization of the network allows users to transact without relying on central authorities, making it an innovative solution in the digital economy. The deflationary nature of the network, with a 100% transaction fee burn rate, means that the more it is used, the more Pandacoin coins are removed from existence.

2.Transactions

Using both Proof-of-Work and Proof-of-Stake consensus algorithms, transactions on the Pandacoin network are added into a memory pool and then hashed into a block at ten-minute intervals. At a block time of ten-minutes, with a maximum size of 1Mb, the network assigns a block reward to both stakeholders approving transactions using the Pandacoin Client and those offering energy-intensive hardware known as ASICs.
Furthermore, the hybrid nature of Pandacoin results in a decentralised system that removes the need for central authorities. Relying on two different consensus algorithms, with a mild bias on Proof-of-Stake, allows for the Pandacoin network to remain decentralised and free of the typical attack vectors found within single consensus algorithm networks.
Leaning slightly more on Proof-of-Stake, a malicious entity would have to purchase a significant stake in the network at-the-market thus benefiting existing stakeholders in the process. Performing as a hybrid network, Proof-of-Work blocks are scheduled at a rate of one in every six blocks, removing the possibility of 51% attack risk as Proof-of-Stake handled the majority of transactions.
Utilising two different consensus algorithms under an inflationary nature is often met with fair criticism that deters many from participating in the network under the risk of inflation devaluing the initial cost of entry. As a counter, transactions on Pandacoin are removed from existence, serving as a counter to the two inflationary consensus algorithms.

3.Purpose

The main purpose of Pandacoin is to bring back the original use of cryptocurrency as a currency rather than just a store of value. It is designed to promote the spending and circulation of the currency with low fees, making it accessible and practical for daily transactions. Additionally, Pandacoin rewards its stakeholders as fees are burned, removing them from existence. This helps in maintaining the value and scarcity of the currency.
Utilizing the Pandacoin network, stakeholders have access to a range of services that promote the use of Pandacoin as a currency. These services include the Pandacoin Client for everyday transactions and secure automated platforms for easy payment for goods and services.
The simplicity of sending and receiving Pandacoin with just a username, through the use of the Pandacoin network and APIs of various social platforms, allows for a wider range of individuals to access and use the currency. Furthermore, the implementation of Smart Contracts and Assets on Pandacoin allows stakeholders and users to create their own services and communities on the network.
Low barriers for entry into Pandacoin, such as not requiring personal information or signing up for existing services, display the effective and straightforward approach of reintroducing the concept of digital currency to the world. Transactions on the network are safe and immediate with SegWit and Lightning Network support, and are accessible to third-party vendors who choose to accept Pandacoin.
By opening the door to vendors, stakeholders, and newcomers in the cryptocurrency sphere, Pandacoin offers a platform for innovation and use for a worldwide demographic that is free from censorship and obstruction.

4.Conclusion

The e-commerce industry is expanding at a fast pace, but a significant portion of the cryptocurrency market hasn't flowed into e-commerce spending. Pandacoin aims to change that. By promoting the spending and use of the currency across the internet, it reaches a global audience. The elimination of central authorities and the ability to spend the digital currency through multiple social platforms ensures a fair distribution through people and not just institutions.
Pandacoin has two consensus algorithms, making the network highly decentralized and secure. The network operates with inflationary rewards, but transaction fees are destroyed to counter the inflation and maintain value. This rewards the network for their contribution to its security. By promoting the spending of Pandacoin, it becomes a valuable tool for e-commerce, encouraging innovation and use without censorship or obstruction.
With the help of decentralization, Pandacoin aims to create a secure and transparent environment for developers, users and stakeholders to build and contribute to the network. By allowing the creation of smart contracts and assets, the network becomes a platform for communities to grow and evolve with their own beliefs and values. Developers can play an active role in contributing to the network through the creation of their own services and frameworks, tailored to their specific needs. The Pandacoin network serves as the foundation for these decentralised services, creating a strong and diverse ecosystem for users, stakeholders, and developers alike.