SpreadCoin – Whitepaper

In proof-of-work cryptocurrencies new coins are generated by the network through the process of mining. One of the purposes of mining is to protect network from double spending attacks and history rewriting. Miners generate new blocks and check contents of the blocks generated by other peers for conformation to the network rules. However,many miners now delegate all the checking work crucial to cryptocurrency security to pools. This means that pool operators do not have any large hashing power but have control over generation of new blocks. This brings unnecessary centralization to otherwise decentralized system. Controlling more than 50% of mining power allows to perform double-spending attacks with 100% chance of success but even with less than 50% control it is possible to perform attacks which have chances to succeed1. The core idea of SpreadCoin is to prevent creation of pools and thus make mining more decentralized and the whole system more secure.