answer these questions fully would take pages of
interesting information. We hope these simple answers
give some guidance, we endeavour to offer examples of
further reading for those interested.
What is Bumbacoin ?
Bumbacoin is a crypto currency. best described as a secure exchangeable electronic token.
There are two major acheivements to be aware of when considering crypto currencies.
The nature of shared record keeping removing need for a trusted central body to maintain and control records, and the use of cryptographic keys to prove unique ownership of these electronic tokens.
1) De-centralisation. unlike other forms of digital currency forms (such as banking), there is no one single body responsible for holding data. Anybody may participate in a complete ledger history of Bumbacoin including all transactions and current balances. This means that every copy must agree on who owns which coin before that coin can be usefully spent.
2) Unique digital data. The obvious problems with digital files is they are infinitely copyable, this is true of the ledger or records of Bumbacoin transactions, but through the use of a cryptographically secure private address key, Bumbacoin (and other crypto currencies) may only used by the owner of the address where the coins reside.
How do I get Bumbacoins ?
If you have no Bumbacoins, you need to get them from someone who already does. The faucet will give you some, also we occasionally giveaway coins through the forum or twitter.
You can also exchange BTC or other crypto currencies for Bumbacoin at Cryptopia.
If you are new to crypto then you will need to convert fiat (real govt issued money) or objects into crypto. There are many and myriad ways to do this and it depends on what country or location you are in.
How are Bumbacoins created ?
Bumbacoin uses computer hardware to constantly perform complex mathematical proofs to effectively create interest on existing coins.
Anyone who owns any Bumbacoins may participate in this process by leaving a wallet (containing coins) necessarily open. Whilst open and running, the wallet will quietly perform such tasks.
Succesful minting of new coins is a statistical process based on coin size and age, for more information visit https://en.wikipedia.org/wiki/Proof-of-stake#Coin_Age_Based_Selection
Bumbacoin uses similar method to Peercoin, utilising coin age and size to determine it's statistical probability of succesful minting, but has a constant block reward of 2 coins rather than a % return.
Using a % return encourages uses to stake quickly with large blocks so as to gain compound interest, by using a constant reward we encourage many small blocks which will assist in network security by having many more potentials than if they were all combined into large blocks.
Why choose Proof of Stake ?
Since Bitcoin was first created, personal hashing power has increased incredibly. A single laptop of todays generation could have single handedly controlled the original Bitcoin network, not only that but the proliferation of single purpose crypto mining machines means that many individuals control the power to overwhelm many of the lower value crypto currency networks.
Whilst Proof of Stake has some issues (as does Proof of Work), none of these pose anywhere near the same risk as the hashing power of many individuals.
For more information on -
Proof of Stake
NOTE; there are many crypto currencies based on Bitcoin. They all vary in numerous respects. Not all information here is consistent between all currencies/coins.