The Spider Coin (SPDR) was created to be a payment means for the services of the Spider VPS Project. But it is more than that – it is also a solid investment asset. The practical use case will give SPDR market supports against severe price dumps, as coins will be bought out by the users of Spider VPS. Therefore, running a Masternode or staking SPDR will generate you passive income and/or the funds to use our services! Imagine that you can host the Masternodes of all your coins on a VPS you can pay for with one of these coins! The initial investment is likely to be paid off multiple times quickly. And in case you don’t have much money to spare, the SPDR coin has a hybrid consensus type – so you can mine it!
The blocks of SPDR are generated using POW and POS simultaneously. While the POW rewards go to miners, the POS rewards are divided between the operating Masternodes and coin holders. The POW/POS reward ratio is dynamic and changes through time. The carefully elaborated economic basis helps to maintain balance of the interests of both miners and investors in the long run.
The proof-of-work (POW) concept means that the participants of a cryptocurrency network must solve complex cryptographic problems in order to generate (mine) valid blocks to be added to the blockchain. Commonly, the difficulty of these problems is automatically regulated so as the number of blocks added to the chain is almost the same on the daily scale, regardless of the computing power of the whole network of miners.
The proof-of-stake consensus also uses cryptographic calculations to generate blocks. However, its difficulty is determined not by the total amount of operations per second performed by all operating hardware (such as GPUs) as in POW, but by the total amount of coins locked for staking. This greatly reduces the environmental impact of a cryptocurrency, as the required amount of electric power for POS is negligible compared to POW. However, both types of consensus have their advantages and drawbacks. Spider Coin uses POW and POS in order to give benefits to miners and coin holders altogether.
A Masternode is a coin network node that performs specific functions and requires a certain deposit of coins to be operational. For their service functions (e.g. the broadcast of instant transactions), Masternodes are getting paid a portion of block reward. Therefore, a Masternode can be viewed as an investment instrument. SPDR Masternode owners receive passive income which can be either sold on an exchange, used to pay for Spider VPS services, or to stake coins and even create more Masternodes to get more profit!
To provide extra transparency of operation of Spider VPS services and to make them suitable for use with legal entities, we will develop and implement smart contracts to the Spider Coin code.
A smart contract is a computer code running on top of a blockchain containing a set of rules under which the parties agree to interact with each other. If and when the pre-defined rules are met, the agreement is automatically enforced. The smart contract 6 code facilitates, verifies, and enforces the negotiation or performance of an agreement or transaction. It is the simplest form of decentralized automation.
Example. Suppose you rent an apartment and make a pre-payment in cryptocurrency. You get a receipt which is recorded in the virtual contract; the owner gives you the digital entry key which comes to you by date specified in the contract. If the key doesn’t come on time, the blockchain releases a refund. If the key is sent before the rental date, the function holds both the key from you and the rental payment from the owner until the specified date. The system works on the If-Then premise and is witnessed by hundreds of people, so you can expect a faultless delivery. If the owner gives you the key, he is sure to be paid. If you send a certain amount of funds, you receive the key. The document is automatically cancelled after the defined time, and the code cannot be interfered by either of the parties without the other one knowing since all participants are simultaneously alerted.SpiderVPS_WhitePaper_ENG