An IoP token is a digital asset required to use the Internet of People infrastructure, thus is considered an application token. Its main use is incentivizing IoP node operators for running many different software components (full nodes).
The IoP token blockchain started out with the bitcoin codebase and added new rules to extend the system capabilities and solve certain issues. The transaction processing and proof of work algorithm is the same as in the bitcoin network, following the same set of rules.
New rules where added on top of bitcoin rules for new blocks, restricting the process with the goal of preventing concentration of mining: In a first stage, mining requires a mining license (mining will be open at a later stage). Also, mining licenses feature an artificial cap so that each license can mine only up to three times the average per license within a certain period of time. As a result, mining does not require specialized hardware, mining farms or mining pools. Instead, mining is done with regular servers or even personal computers. The goal is to put the mining process in control of regular people, not corporations.
Mining licenses are issued by the community behind the Fermat project. The Fermat Chapter Network—local chapters organized by country, state and city—are the initial beneficiaries of mining licenses. A second layer of mining is performed by the Fermat Research Network—a network of universities researching Fermat concepts, coordinated by the Internet of People Consortium.
The IoP token is traded as a crypto-currency on several crypto-exchanges under the IOP code.
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