A little more a week after release of NeuCoin's technical whitepaper, an intense debate been sparked between the proponents of the two main crypto technologies, proof-of-work (PoW) and proof-of-stake (PoS).

Online forums including Bitcointalk, Peercointalk and Reddit, equally well equally NeuCoin's own forum, have been playing host to the exchanges, which take fatigued in not only lay community members merely several of its household names.

On Reddit, Bitcoin cadre developer Jeff Garzik began by fiercely defending Bitcoin from PoS supporters' allegations that Pow is becoming centralized.

"Bitcoin has many existing stakeholders. If large mining pools misbehave, the network and the existing stakeholders can cull new miners -- and it is inside their economic interest to do so. Separation of powers means that stakeholders and miners are two split up classes," Garzik wrote.

NeuCoin co-creator and co-author of the white newspaper Dan Kaufman, who initiated the Reddit debate, posted in response:

"Transaction volume could grow by 1,000X to compensate for coinbase awards going the style of the dodo bird. Merely for right now, the math is the math. Don't believe Bitcoin mining is becoming centralized? Ever heard of Bitfury and KncMiner?"

Bitcoin's Garzik further suggested that the Peercoin's utilize of checkpointing might make information technology even more centralized than Bitcoin. "Peercoin has been beset with security issues," he said, "resulting in the need for centralized administration through checkpoints."

To this Kaufman commented that checkpoints "won't exist necessary in NeuCoin'south design" and that the solution information technology is poised to present is "making a lot of larger holders of Bitcoin uncomfortable."

Meanwhile on Peercointalk, in an unusual endorsement of a competing coin, senior Peercoin developer Ben Rossi voiced his approval of NeuCoin's underlying technical foundation.

"The fact that the NeuCoin squad has been able to detail the underlying maths that make up proof of stake is of import [...]. I personally believe that these documentation deficiencies take retarded the spread of information well-nigh the protocol and by association reduced the number of developers who wanted to leap through the hoops to brand sense of what was going on profoundly."

Amid the renewed debate on the effect of underlying technology in crypto, Cointelegraph reached out to NeuCoin co-founder Dan Kaufman for more background on the project and how developers envisage ensuring its success in the long term.

Cointelegraph: What prompted the creation of the NeuCoin Project and the digital currency? How/when did you and your co-founders assemble to launch this initiative?

Dan Kaufman: The NeuCoin project started about a year ago. We loved the idea of what Bitcoin could mean for mainstream consumers, but were struck by how techy, intimidating and inaccessible it was. Bitcoins were hard to obtain and had no real applications yet that regular consumers care about. And non surprisingly, even with all the buzz and media attending, Bitcoin had gone nowhere in half dozen years of existence in terms of consumer adoption.

"NeuCoin distribution model rewards all participants who grow its utility and user base, not just miners."

Nosotros also saw how Bitcoin's distribution to just miners was hindering its mainstream adoption. Looking at Ripple and, more recently Stellar, we saw there were culling technologies that would allow you use money distribution as a strategic tool for growth and adoption.

With our consumer marketing background nosotros knew that for the mainstream to adopt, you've got to put consumer feel and usability first. So, we gathered a strong tech team and spent the last year edifice a digital currency that is start and foremost easy to use, free to try, and actually useful for regular consumers through micropayment platforms with content partners. Information technology is also designed for growth: the NeuCoin distribution model rewards all participants who grow its utility and user base of operations, not just miners.

CT: In the printing release about NeuCoin and the initial funding, you were quoted equally saying, "Strategic currency distribution is a huge reward over Bitcoin and other Proof-of-Work coins." What other advantages do you lot meet NeuCoin offering over other digital currencies? What potential do you run into in NeuCoin as becoming widely adopted?

DK: Yous're right; NeuCoin's distribution model is the engine for growth and adoption, actually a huge reward over PoW coins. Here are two other central advantages for NeuCoin:

Firstly, NeuCoin is totally consumer-driven: it is like shooting fish in a barrel to use, free to become started and focused on micropayments, offering consumers something new to do that they haven't been able to practise with traditional payment methods.

Secondly, execution: NeuCoin already has micropayment partnerships in place and volition be set up to whorl out the start pilots soon later on the coin launches. We're a large, stiff squad with a solid runway record of building successful consumer-facing services and take real funding from prominent investors, also from the consumer media and tech world.

CT: What was NeuCoin's arroyo to alluring investors?

DK: The loftier Proof-of-Stake awards! Like anyone getting in early NeuCoin, their coin stake will grow tremendously. But first of all, our investors know us and our rails record well. 2d, they too come from consumer-driven media and tech, companies similar King, Uber, Facebook, Spotify, Hotwire, and have a very consumer-oriented wait on any blazon of project. They were fascinated past the potential of cryptocurrencies, but agreed information technology has so far been totally inaccessible for mainstream users, and that no one had approached it from a pure consumer feel angle.

Like united states of america, they saw the potential for mainstream adoption, by offering an piece of cake, freemium and actually useful experience. That's how you get consumers onboard, simply similar with any other digital consumer product.

CT: According to the NeuCoin website, micropayment platforms will drive consumer adoption. How do you lot run into micropayments equally being the path to mainstream adoption?

DK: For any product or service to get adopted by the mainstream it has to be easy and provide some obvious benefit, fill up a need, solve a problem, be fun and engaging.

Same matter for digital currency: it has to offer some actual benefit over traditional payment methods, otherwise why would a consumer bother? Existence able to brand anonymous transactions isn't something most mainstream consumers intendance about. Buying a computer at dell.com is actually easier with a credit menu than Bitcoin, and so that'due south not it either.

International transfers is i surface area where crypto has huge potential. Micropayments is another, information technology offers consumers and digital content providers a new feel that hasn't been feasible with traditional payment methods, like  being able to pay 5 cents to sentry a video, or twenty cents to get rid of all video ads for the mean solar day, or 50 cents for a micro subscription, tipping your favorite content creators.

To become consumers and content providers to endeavor this new experience with every bit little friction as possible NeuCoin's micropayment platforms volition exist powered by freemium distribution of NeuCoin to users, who will exist able to try premium content for free - a significant advantage over micropayment platforms using Bitcoin. NeuCoin will also give user acquisition bounties to participating content providers for all new users that sign up for free NeuCoin, to keep the circle of adoption going.

CT: Neucoin is supported by 3 independent non-turn a profit foundations in the Isle of Human, each with its own focus: code, utility, and growth. Tell united states more.

DK: NeuCoin'south core development, consumer marketing, and projects to increase the money'southward utility will be handled by 3 independent not-profit foundations based in the Mann – the Code, Growth and Utility foundations.

These three foundations besides control the allocation of NeuCoin's pre-mine, and are spring to use this resource to maximize the value of NeuCoin. 3 separate foundations with singled-out functions and resources were created rather than a unmarried ane, with the object of making the currency more than decentralized. This construction also affords NeuCoin greater flexibility and adaptability to navigate the international regulatory environs for digital currencies that is still evolving.

"All foundations are ultimately controlled by NeuCoin holders (1 NeuCoin = 1 vote), who have the power to rent, burn down and set up compensation for the foundations' Quango Members [.]"

Although the iii foundations are contained of each other, they all share the aforementioned mission – to maximize the long-term value of NeuCoin. Each ane is overseen by independent Council Members, who are aided past Strategic Advisors with experience in digital currencies, consumer marketing, economics, finance and regulatory matters.

All foundations are ultimately controlled past NeuCoin holders (1 NeuCoin = 1 vote), who have the power to rent, burn down and ready compensation for the foundations' Council Members, and have a right of approval on annual budgets, spending priorities and other matters.

The foundations are located in the Island of Man, every bit per the public record. From there you can download the electric current Isle of mann foundations register (updated daily) with the three NeuCoin foundations almost the stop of the listing (numbers 000060M, 000061M and 000062M).