Altcoin Created by BitTorrent’s Cohen To Combat “Bitcoin Flaws”

BitTorrent Founder Bram Cohen has said he wants to create a “storage based” cryptocurrency to combat “centralization in Bitcoin mining.”

The veteran tech entrepreneur told TorrentFreak that a “new currency” is required to tackle what the publication describes as “Bitcoin flaws.”

He says:

“My proposal isn’t really to do something to BitCoin. It really has to be a new currency. I’m going to make a cryptocurrency company. That’s my plan.”

While the exact details are still forthcoming, Cohen apparently intends to use a Proof-of-Capacity (PoC) algorithm to reduce mining expenditure. Bitcoin, by contrast, uses a Proof-of-Work algorithm.

Currencies that use PoC rely on stored data banks to verify blocks, which reduces the energy load required to run the network considerably on the miner’s end.

“Another benefit of storage based things is actually that there’s a lot less centralization in mining. So there’s a lot less concern about having a 51% attack,” he continues.

Cohen is a fair few stages behind fellow tech mogul Kim Dotcom in his entry into the cryptocurrency realm, the latter having already demonstrated the latest incarnation of his Megaupload file-sharing site.

Incorporating a Bitcoin-based content distribution system called Bitcache, the project makes direct use of Bitcoin wallets to allow content creators to receive payments for the material they publish.

In preparation for Bitcoin’s latest rival, meanwhile, Cohen says he will shortly begin spending all his time on development.

“In the next few months I’m going to devote myself full-time to the cryptocurrency stuff,” he concludes.