What is Woodcoin (LOG) Crypto Beginner’s Guide
Woodcoin is a decentralized, blockchain-based cryptocurrency whose purpose is to provide a logarithmically growing money supply to interested parties. The unit of exchange for the cryptocurrency is LOG, and the genesis block was mined in October 2014. Woodcoin is a completely decentralized and minable coin that is based on Proof of Work (PoW) technology, and has been established on a public and transparent ledger.
The developers of Woodcoin created it because they wanted to address a problem that often occurs with the mining reward schedule of many other public cryptocurrencies. For a decentralized coin, it’s required that mining take place according to a predetermined reward schedule, or a public monetary policy. With this system, if the reward schedule drops too soon, the founders of the coin or the early adopters have all the existing coins and there is little incentive for new miners.
Not only does this lead to stagnation, but it also completely deconstructs the decentralized intention of these currencies, and puts the power in the hands of just a few users. However, the opposite can happen as well; if a reward schedule drops too slowly, the supply increases without any bound, and this leads to inflation. Neither outcome is beneficial for coins or their users.
To avoid this and to provide a viable alternative for cryptocurrency users, Woodcoin is the first cryptocurrency that uses a logarithmic coin release. The reward for mining the coin is continually decremented, and the reward isn’t set to drop quickly until far into the future. Through this, Woodcoin is a new kind of currency that holds all the traditional benefits, while also providing new incentive for miners.
Woodcoin – A Logarithmic Currency
Woodcoin finds the solution to these problems by establishing itself as a coin that grows logarithmically. This means that the mining reward that is given is always bigger at the current moment than it will be later, and that there will always be a significant reward incentive for new miners to become involved and secure the network. This way, Woodcoin avoids actions that lead to both stagnation and inflation.
Features of Woodcoin (LOG)
The logarithmic money supply of Woodcoin is a policy that is designed for stability and longevity. Half of all LOG coins will be released in the first 200 years of the cryptocurrency’s establishment; this can be compared to the traditional rate that most cryptocurrencies, such as Bitcoin and Litecoin, release, at the first half within four years. At the same time, every new block is worth less than the preceding one for Woodcoin, so earlier adopters are always rewarded as the hard cap supply of LOGS never goes above 28.5 million.
Woodcoin is maintained by Vermont Secure Computing consultancy. Its developers designed the coin in an effort to benefit the public coin economy; Woodcoin is a global cryptocurrency that can be traded for other coins on exchanges, including Bitcoin, so everyone can become involved. The logarithmic protocol has remained simple and robust since it was first created in 2014. By providing incentives for new miners and continual benefits for those who adopted the coin in the beginning, Woodcoin presents a viable alternative to the way cryptocurrencies are traditionally mined.