Over the last several months the digital currency Terracoin has been steadily gaining a following. With the emergence of several Terracoin communities and more developers working on Terracoin projects I’ve decided to do a series of posts on using and mining Terracoin. What follows is an introduction to Terracoin and a guide on using the Terracoin client.
An Overview of Terracoin
Terracoin (abbreviated TRC) is a decentralized, person to person digital currency based on a protocol similar to Bitcoin, as laid out in Satoshi Nakomoto’s white paper. Unlike traditional currencies, Terracoin is run and maintained solely by the users on the network and is not dependent on a central entity. It is reliant on having an active group of users running the Terracoin client and an active group of miners who use computing power to process transactions. Terracoin was launched on October 26th, 2012 making it one of the youngest crypto currencies.
Terracoin was designed to be a finite currency with only 42 million Terracoins to be produced. Miners generate a ‘block’ of 20 Terracoins approximately every 2 minutes. The mining difficulty adjusts every 30 blocks or roughly every hour. It uses the SHA-256 hashing algorithm (Bitcoin’s hashing algorithm is double SHA-256). The block size will decrease at set increments until new coins are no longer generated.
Setting Up The Terracoin Client
To use Terracoin you need to first download and run the Terracoin client (Download the Windows client from Sourceforge). Once you have downloaded the client you’ll need to find the terracoin-qt.exe file in the Terracoin folder and run it. It will take at least a few minutes for the Terracoin client to download the blockchain and sync with the network. Things are fairly self-explanatory once you have the client up and running. Send Coins lets you send Terracoins to another user by entering in their address and the amount to send. Receive coins allows you to manage your addresses, copy them and allows other people to send you coins. Transactions is a ledger of all the coins you’ve sent and received to date. The address book allows you to manage a list of addresses and label them so you don’t have to reacquire an address every time you need to send someone coins.
Securing Your Wallet
The Terracoin client includes a basic encryption system that allows you to secure your wallet via a passphrase. I highly recommend that you encrypt your wallet to secure your coins. Make sure you have a method for recalling the password as you might not be able to recover your coins if you forget it.
TerracoinTalk came online earlier this month and has a growing and active community. This is a good place to get your questions answered. The Alternate CryptoCurrencies board over at BitcoinTalk has a lot of good information on Terracoin as well. While it doesn’t have very many subscribers yet the Terracoin Subreddit has been up and running since November 2012. It has some good information as far as where to get more involved with Terracoin.
Post a comment with your feedback about this article or about Terracoin along with your TRC address and I’ll go ahead and send you 10 5 1 Terracoin (While supplies last). Also, There are a few members on TerracoinTalk and on BitcoinTalk that are acting as Terracoin Faucets to get new users started with the currency. If you’re interested in purchasing Terracoin they’re available through the virtual currency exchange Vircurex and are rumored to be trading on BTC-e.com shortly (I’ve suspended the coin giveaway indefinitely given the recent rise in price and difficulty).
We’ve put together our Absolute Beginner’s Guide To Mining Terracoin. Much of what is in there is applicable to Bitcoin as well.