BeaverCoin is based on the source code of Litecoin, which in turn is based on Bitcoin. There are some changes in terms of specifications, however, so that there are technical differences compared to BeaverCoin and Litecoin.
BeaverCoin, just like Litecoin, uses a scrypt algorithm for the mining process. This makes it easier to create coins by using a normal graphic card, but at the same time it is more difficult and expensive to create special chips, such as ASICs, which are optimised for a scrypt algorithm in order to generate coins much faster. This is because scrypt needs a lot of memory whereas RAM, compared to processing power only, is quite expensive. Consequently, costs of special ASIC chips raise. Graphic cards naturally come with plenty of RAM and are hence ideal to generate BeaverCoins.
The usage of scrypt as a mining algorithm makes sure that generated coins are preferably received by ordinary users with graphic card and not by special mining chips.
A new block is generated approx. every single minute. The one, who computes it first, receives a certain amount of coins as a reward. Each 1,440 blocks, which equate approx. one day, the difficulty to find a new block is adjusted to the total processing power so that the amount of time between two blocks should be close to 60 seconds.
At the beginning, the reward for a found block is 8 coins. And every 210,000 blocks, the reward will be halved. By doing so, the maximum amount of BeaverCoins is limited to 3.36 million.
This is what makes BeaverCoin special:
- Algorithm: scrypt
- Maximum amount of coins: ~3.36 million
- Time per block: 1 minute
- Coins per block: 8 coins
- Halving: every 210,000 blocks
- Difficulty: changes every 1,440 blocks (approx. 24 hours)
- 0% coins premined