Proof of stake (POS) is an algorithm for verifying and validating the transaction or the block in cryptocurrency process. This concept states that a person can validate or mine blocked transactions on the bases of his holdings of crypto coins.
proof of stake (POS) gives more mining power to the individual who has more holdings of Bitcoins or Altcoins.
In proof of stake process, the minors are called validators, there are four blocks that need to be generated. Each miner or validator pledge his money to blockchain so that he will be able to sign the block.
According to the process, the first miner has to deposit most of the money that is followed by other three minors. In proof of stake, the more money you have the more chances you get to solve the blocks. Proof of stake is a lot more user-friendly and environment-friendly as compare to Proof of work (POW).
The essential part of the proof is stake is that each validator should own some of the stakes in the network. The validator has to deposit the money into the network.
Popular Proof of stake coins:
This cryptocurrency was launched in 2013 and it has gained success since then. This cryptocurrency is being used as an alternative to the bitcoin since it has been introduced. NXT is the first Proof of stake blockchain project. The idea of this currency was actually to develop a blockchain that is easy and simple to use with low risk and more return.
Dash is trending and it is a popular cryptocurrency known as digital cash. It is one of most pioneer cryptos to implement a proof of stake process. Dash is unique crypto with the most enhanced privacy and quick transactions features like InstantSend and PrivateSend. It declares itself as peer-to-peer decentralized electronic digital money and aims to be liquid and tangible real cash. This crypto blockchain project tends to get a lot of success in future years.
The coin was previously known as Antshares and it proceeds on NEO blockchain. Besides being categorized under the classification of proof of stake (POS) the nature of coin is somehow different from the traditional proof of stake coins. There is no need of keeping the stake wallet open constantly and it can be staked in NEO wallet for good return.
This cryptocurrency is relatively newer and less popular. Lisk was introduced in 2016 in the market. They work on a software development kit. it is growing with the passage of time and it has the great scope in future.
This cryptocurrency blockchain project uses latest technology Delegated Proof of Stake. This technology claims to solve all risk related and other problems. This technology aims to deliver maximum benefits and returns on minimum investments and less risk. Bitshare tends to achieve a lot of popularity and success in coming years.
This proof of stake blockchain project aims to develop the C# applications that are more reliable and developed on the dot NET framework. This is new blockchain project and it is not popular yet but it has hope in the future.
The process of proof of stake mining:
- First of all the validator or the minor should hold some amount of cryptocurrency in order to proceed further.
- The miner in the process of proof of stake in usually called as validator rather than minor and the process is known as “minted” or “forged”.
- The people who are behind the development of new blocks are known as forgers.
The proof of stake mining process needs:
- Cryptocurrency Coins
- Internet connection
- Very secure and fast computer system
To start the actual proof of stake mining process you need to:
- First of all set up the wallet
- Download your blockchain from reliable and trustworthy source
- Add the blockchain in the app data in your wallet
- Encrypt your wallet for maximizing security
- Type a very strong password and remember that password otherwise, you will lose all of your coins
- After you have added up a strong password and encryption your wallet should get locked
- Unlock the wallet and it will start the process
- Before your startup with the proof of stake process, your coins should be held in your wallet for at least 4 to 48 hours.
- After your coins have matured enough you can start staking.
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The trend of cryptocurrency is drastically rising and it is coming up with the new technologies and advancement. One of the latest technologies that have been emerged in cryptocurrency process is proof of stake. This article has discussed the proof of stake process and how it can be taken out. The article has also highlighted the cryptocurrency coins that are categorized under the classification of proof of stake.