Woodcoin: What/Why

What

Woodcoin is a logarithmically growing money supply, a decentralized, mineable, proof-of-work, public virtual currency. The unit of exchange is LOG, and the genesis block was mined in October 2014.

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Why

Woodcoin (LOG) was created to solve a problem which exists with the supply economics of many currencies. Mining occurs with a predetermined reward schedule or a public monetary policy. If the reward schedule drops too quickly, it results in a somewhat centralized structure as founders or early adopters hold all the existing coin and there is little incentive for miners to secure the network. Fees do provide substantial incentive for miners but high transaction fees can also drag down the value of the coin itself. If a reward schedule drops too slowly, inflation is the result and your currency will eventually decrease compare to less inflationary assets.

Woodcoin’s coinbase reward finds middle ground by growing as an harmonic series. This means that the mining reward is always bigger today than it will be tomorrow, and that there will be a reward incentive for miners to to secure the network for a long long time.

The logarithmic money supply curve is designed for stability and longevity, with the longest reward schedule of any other cryptocurrency. Half the LOGs will be released in the first 200 years, instead of the first 4 years (Bitcoin). However, every block is worth less than the preceding one - so earlier adopters are always rewarded and the supply will never rise above 28.5 million LOG.

Technical Details

Woodcoin is a public cryptocurrency like Bitcoin. There are three major innovations, with design considerations listed here:

  • Proof of Work algorithm: Double Skein
    • This is the first consensus network built solely with the skein hash function. You can read more about Skein here. We hope to encourage further use and testing of the Skein family with this coin.
  • Elliptic Curve for Digital Signatures: X9_62_prime256v1.
    • To sign transactions and create public and private addresses we use the elliptic curve digital signature algorithm ECDSA just like Bitcoin. However we use a different curve as a basis to do so. This curve is perhaps the most used in the financial industry. Some people claim it is more secure.
  • Logarithmic Coin Release
    • Woodcoin is the first coin to use a logarithmic coin release. The woodcutting reward is continually adjusted according to the harmonic series. The algorithm that controls the creation of units of currency over time should be the first thing every educational site about a coin should present. In that spirit here is the monetary policy of Woodcoin: From /src/main.cpp:
      int64 static GetBlockValue(int nHeight, int64 nFees) {
      	int64 nSubsidy = 1000000 * COIN;
      	if (nHeight<100) return 1*COIN;
      	else return nSubsidy/nHeight + nFees;
      }
      This leads to a total money supply S which increases logarithmically in block height n:
      log = natural logarithm
      gamma = euler-mascheroni constant
      forest = 5187377.51763962
      S = 1000000* ( log n + gamma ) – forest
      
      Unlike Bitcoin and most other cryptocurrencies, the reward isn't scheduled to reach zero until far in the future. Here is a plot of the woodcutting reward per day, compared to Bitcoin, for the next 50 years:

    Downloads / Code

    Basic Android SPV Wallet

    Source: wooodcoinj (full implementation in java)
    Source: wooodcoin-wallet for android
    APK: Android App

    Woodcoin-Core Full Node

    Source: Woodcoin-Core 0.13.2
    Windows Executable: Woodcoin-Core 0.13.2

    Woodcoin Full Node (Stable, w/ miner)

    Linux: Download (1.2.0.10)
    Mac: Woodcoin-qt.dmg (1.2.0.10)
    Windows: Woodcoin-qt.exe (1.2.0.10)

    Other Woodcoin Node Implementations

    The-Real-Woodcoin (Satoshi 0.5.3 Based)
    Woodcoin-minimal (Satoshi 0.8 woodcoind only)
    Full Java Implementation

    Miner

    GPU CCMiner (Nvidia)

    Miscellaneous

    Linux/Mac/Windows: VanityGen
    Linux/Mac/Windows: Original git repo