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Proof of stake (POS) -
The Proof of Stake (PoS) concept states that a person can mine or validate block
transactions according to how many coins they hold. This means that the more coins
owned by a miner, the more mining power they have.
With Proof of Stake (POS), cryptocurrency miners can mine or validate block
transactions based on the amount of coins a miner holds.
Proof of Stake (POS) was created as an alternative to Proof of Work (POW), which is
the original consensus algorithm in Blockchain technology, used to confirm
transactions and add new blocks to the chain.
Proof of Work (POW) requires huge amounts of energy, with miners needing to sell
their coins to ultimately foot the bill; Proof of Stake (PoS) gives mining power based
on the percentage of coins held by a miner.
Proof of Stake (POS) is seen as less risky in terms of the potential for miners to
attack the network, as it structures compensation in a way that makes an attack less
advantageous for the miner.
The proof of stake was created as an alternative to the proof of work (PoW) concept, to
tackle inherent issues in the latter. Currently, only altcoins use the proof of stake
concept. When a transaction is initiated, the transaction data is fitted into a block with a
maximum capacity of 1 megabyte, and then duplicated across multiple computers or
nodes on the network. The nodes are the administrative body of the blockchain and
verify the legitimacy of the transactions in each block.
To carry out the verification step, the nodes or miners would need to solve a
computational puzzle, known as the proof of work problem. The first miner to decrypt
each block transaction problem gets rewarded with a coin. Once a block of
transactions has been verified, it is added to the blockchain, a public transparent
ledger.
Proof of Stake Coins:
1. Binance Coin (BNB):
BNB, or Binance Coin, is a cryptocurrency created by Binance. Binance Coin (BNB)
powers the Binance Ecosystem. As the native coin of Binance Chain, BNB has multiple
use cases: fueling transactions on the Chain, paying for transaction fees on Binance
Exchange, making in-store payments, and many more.
Where you can use BNB
Pay trading fees – Receive a 25% discount on trading fees using BNB
Pay travel expenses – Travel the world and pay with BNB at merchants in Australia
Pay by credit card – Pay your Crypto.com credit card bill with BNB
Stake and shift BNB via VAULT – Stake and shift BNB via Mithril’s VAULT wallet
Buy virtual gifts – Buy virtual gifts on live video streaming platform
Pay via XPOS – Purchase anything from stores that use the XPOS device by Pundi X
Pay in BNB – Pay with BNB on DENT Apps
Pay BNB in the pilot shop – Pay BNB for aircrafts in the pilot shop powered by Aeron
Use BNB to make impact investments – Use BNB to make impact investments on
Moeda platform globally
BNB Burning Mechanism
Binance plans to destroy BNB each quarter based on the trading volume on our
exchange, until 50% of the total BNB supply (100 million BNB) is burned. All
transactions will be recorded on the blockchain. Eventually, only 100 million BNB will
remain in circulation.
2. Cardano (ADA):
Cardano is a decentralized public blockchain and cryptocurrency project and is fully
open source. Cardano is developing a smart contract platform that seeks to deliver
more advanced features than any protocol previously developed. It is the first
blockchain platform to evolve out of a scientific philosophy and a research-first driven
approach. The development team consists of a large global collective of expert
engineers and researchers.
3. Solana (SOL):
Solana is a single-chain, delegated-Proof-of-Stake protocol whose focus is on
delivering scalability without sacrificing decentralization or security.
Core to Solana’s scaling solution is a decentralized clock titled Proof-of-History (PoH),
built to solve the problem of time in distributed networks where there is not a single,
trusted, source of time. By using Verifiable Delay Functions, PoH allows each node to
locally generate timestamps with SHA256 computations. This eliminates the need for
the broadcasts of timestamps accross the network, improving overall network
efficiency.
4. Polkadot (DOT):
Polkadot development is on track to deliver the most robust platform for security,
scalability, and innovation. Currently, Polkadot is in the Governance and Removing
Sudo phase of launch.
Polkadot Features:
True interoperability – Polkadot enables cross-blockchain transfers of any type of
data or asset, not just tokens. Connecting to Polkadot gives you the ability to
interoperate with a wide variety of blockchains in the Polkadot network.
Economic & transactional scalability – Polkadot provides unprecedented economic
scalability by enabling a common set of validators to secure multiple blockchains.
Polkadot provides transactional scalability by spreading transactions across multiple
parallel blockchains.
Easy blockchain innovation – Create a custom blockchain in minutes using the
Substrate framework. Connect your chain to Polkadot and get interoperability and
security from day one. This ease of development helps Polkadot’s network grow.
Forkless and future-proof – Polkadot can upgrade without hard forks to integrate
new features or fix bugs. This capability enables Polkadot to easily adapt to changes
and upgrade itself as better technologies become available.
Security for everyone – Polkadot’s novel data availability and validity scheme allows
chains to interact with each other in a meaningful way. Chains remain independent in
their governance, but united in their security.
User-driven network governance – Polkadot has a sophisticated governance system
where all stakeholders have a voice. Upgrades to the network are coordinated on-
chain and enacted autonomously, ensuring that Polkadot’s development reflects the
values of the community and avoids stagnation.
5. Avalanche (AVAX):
Avalanche is an umbrella platform for launching decentralized finance (DeFi)
applications, financial assets, trading and other services.
It aims to be something of a global assets exchange, allowing anyone to launch or
trade any form of asset and control it in a decentralized manner using smart contracts
and other cutting-edge technologies.
Developers at Ava Labs claim that Avalanche is the first smart contracts network to
offer transaction finalization in under one second as standard.
Avalanche launched its mainnet in September 2020. The platform’s native token,
AVAX, performs various tasks within Avalanche and also functions as a rewards and
payment system for users.
AVALANCHE FEATURES
Speed – The Avalanche platform uses a novel consensus protocol created by
distributed systems researchers in 2018, also called “Avalanche”, to permanently
confirm transactions in 1-2 seconds.
Scalability – Avalanche handles thousands of transactions per second and can
accommodate thousands of validators with no loss of performance.
Security – Avalanche provides stronger security guarantees than either classical or
longest-chain consensus protocols.
Smart Contract Support – Avalanche supports creation and use of Solidity smart
contracts as well as all your favorite Ethereum tools like Remix, Metamask, Truffle and
more.
Private/public Blockchains – Users can create their own public or private blockchains.
Finance-focused – Avalanche was built with serving financial markets in mind. It has
native support for easily creating and trading digital smart assets with complex custom
rulesets that define how the asset is handled and traded. The assets could represent
financial instruments such as equities, bonds, debt, fractionalized real estate, or
anything else.
6. Algorand (ALGO):
Algorand removes the technical barriers that for years undermined mainstream
blockchain adoption: decentralization, scale, and security. Now you can build on a
stable platform you trust.
7. Cosmos (ATOM):
Cosmos is a blockchain ecosystem where thousands of dApps interoperate to create
the foundation for a new token economy. Cosmos is a decentralized network of
independent parallel blockchains, each powered by BFT consensus algorithms like
Tendermint consensus.
8. Elrond (EGLD):
Elrond is a distributed transactional computation protocol which relies on a sharded
state architecture and a secure Proof of Stake consensus mechanism.
The Elrond eGold (EGLD) is the native Mainnet token, replacing the ERD ERC20 and
BEP2 tokens. It will be used for everything from staking, governance, transactions,
smart contracts and validator rewards.
Elrond’s goal is to be a high throughput, fast transaction speed and low transaction
cost platform, allowing efficient and competitive dApp user experiences in real world
use cases.
9. eCash (XEC):
Bitcoin Cash ABC (BCHA) has rebranded to eCash (XEC) and has redenominated to a
1:1000000 ratio. The eCash branding came into effect on July 1, 2021.
eCash is a cryptocurrency that’s designed to be used as electronic cash. Just like the
invention of emails made it possible to send direct messages online, eCash makes it
possible to send money directly to other people online. This includes being able to use
eCash to pay for goods and services.
eCash is a cryptocurrency, whereas Bitcoin ABC is the software businesses use to
interact with and maintain the eCash network. The team behind the Bitcoin ABC
software also operates under the same name.
10. NEAR Protocol (NEAR):
NEAR is a decentralized development platform built on top of the NEAR Protocol,
which is a public, sharded, developer-friendly blockchain. The network runs on a Proof-
of-Stake (PoS) consensus mechanism called Nightshade, which aims to offer
scalability and stable fees.
The NEAR token (aka $NEAR) is a utility token which powers the NEAR Protocol
blockchain and all applications which use it. It is used for:
Fees for processing transactions and storing data.
Running validator nodes on the network via staking NEAR tokens.
Used for governance votes to determine how network resources are allocated.
NEAR tools include:
NEAR SDKs which includes standard data structures and testing tools for Rust and
AssemblyScript.
Gitpod for NEAR to create a zero time onboarding experience for developers.
NEAR Wallet that lets application developers create streamlined user experiences.
NEAR Explorer to aid with both debugging of contracts and the understanding of
network performance.
NEAR Command Line Tools to allow developers to deploy applications from local
environments.
