What is NovaCoin?

NovaCoin is a cryptocurrency, which was derived from Satoshi Nakamoto’s Bitcoin code and improves a basics of Sunny King’s PPCoin project. It was announced at October 01, 2012 in bitcointalk.org local subforums and released few months later at February 09, 2013.

Hashing algorithm

Originally it was planned to use Groestl-512 hashing algorithm, but due to existance of the private Groestl GPU miner in the final builds it was replaced with optimized scrypt implementation. Novacoin’s scrypt implementation is fully compatible with any Litecoin based cryptocurrency, but it is used in a slightly different way. For example, unlike Litecoin-based systems there is no differences between PoW hash and block header hash, the Scrypt function is directly used to generate block header hash. This makes Novacoin incompatible with original implementations of common tools, such as ABE or P2Pool. However, there are adapted versions of ABE and P2Pool.

Energy efficiency

There is a major difference between PPCoin and Novacoin. Novacoin uses the both PoS and PoW blocks to calculate chain trust score. Just like PPCoin, Novacoin network can work without Proof-of-Work miners, but it becomes less secure in this mode. So, Novacoin uses much less energy than comparable Proof-of-Work system, but it still consumes energy.

Difficulty and blocks spacing

Novacoin uses exponential moving toward target spacing for difficulty adjustment, this feature derived from PPCoin project. Proof-of-Stake blocks spacing is 10 minutes, Proof-of-Work blocks spacing could be calculated using the following pseudocode:

nPoWTargetSpacing= min(3 * nStakeTargetSpacing, (1 + lastPoWBlock→nHeight - previousPoWBlock→nHeight) * nStakeTargetSpacing)

As the result, PoW blocks spacing depends on PoS blocks generation rate, and limited by [10min, 30min] borders.

Proof-of-Work rewards adjustment

Proof-of-Work block rewards could be calculated using to following formula:

nBlockReward = 100 / (PoWDifficulty / 0.00024414) ^ (1/6)

Example for PoWDifficulty=300:

nBlockReward = 100 / (300 / 0.00024414) ^ (1/6) = 100 / 10.34 = 9.67 coins.

Proof-of-Stake rewards adjustment

Proof-of-Stake block rewards could be calculated using this pseudocode:

Reward for 3650 CoinDays = 1 / (PoSDifficulty / 0.03125) ^ (1/3)

nBlockReward = min(10, SUM * Age * (Reward for 3650 CoinDays))

As the result, we have the dynamic interest and 10 coins maximum payment.


There is a lot of FUD, which comes from a few biased persons, like him. They are spreading desinformation about 180k/200k/250k/(rand())k premine. It's obvious lie, such amount of coins simply didn't exist at the moment of this threads publishing.

Independent opinion:

All premined coins have been destroyed. I have looked over the blockchain and noted the graphs here:


From the research I have done it appears it is as Balthazar has stated all along. All premined coins were destroyed.

There seems to be a lot of FUD going around about NVC at the moment. 

Balthazar is a great developer. NVC has widened the gap between itself and PPC over time by balthazars continued development. Look at github. Its a endless field of updates all for the better

mullick, BottleCaps maintainer.

More Novacoin Information

QR Code
QR Code novacoin (generated for current page)