Peercoin and Nxt use an alternative mining mechanism called - TopicsExpress

Peercoin and Nxt use an alternative mining mechanism called “proof of stake” where users “mine” with money rather than computing power; although this alternative mechanism is relatively unproven, it is extremely promising because it is essentially impossible to set up a mining pool with it. I agree with Vitalik. Bitcoin is great, but the ever increasing arms race of hashing power without an increase in profitability to mine means for-profit small miners will drop off, leaving only for-profit large pools and not-for-profit malicious miners gaining a greater percentage of the network power by just sitting there. If the price does not increase substantially soon to keep up, Houston we will have a problem. bitcoinmagazine/9402/mining-pool-centralization-crisis-levels/

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