The Proof of Stake (POS) is simply a concept where only one person can exploit or validate block transactions based on the amount of coin he or she is holding. This means that the more miner (bitcoin) or altcoin they have, the greater their mining power from Proof of Stakes (PoS). The first electronic currency to use the Proof of Stake (PoS) algorithm was Peercoin, then NXT, Blackcoin, and ShadowCoin.
- On Wikipedia, there is a technical concept: Proof of stake (PoS) is an algorithm in which a blockchain network of an electronic currency targets a distributed consensus.
In the Proof of Stake (PoS) platform, the next block creator is selected through a variety of combinations based on random choice and age age (stage age).
In contrast to the Proof of Work, Proof of Work (PoW) solves puzzles in computation to validate transactions and create new blocks through which the miner receives a coin reward when " get a quiz "(mining). => By the way, Proof of Stake (PoS) seems simpler than Proof of Work (PoW).
Advantages Proof of Stake (POS) network
The first is that you will increase the amount of coin in the hold time. If you keep the coin on the floor, you will not have more coins. So even if the price is down, you can still make a few words because of the amount of coin you have.
The second is that the machine does not need to configure the cranky, just need to connect computers and fiber optic cable to 24/24, you can dig then. The cost of digging is extremely cheap and especially if you dig with coin, if you do not like to dig anymore, transfer the coin to the floor and sell it.
100% secure stitching because it has back up. Interest is terrible with some coin (eg BUZZ interest up to 100% per month). However, many coin only 10% per year.
The POS line will become a new trend after the ICO. According to the information you learn, ETH is about to have POS then you. Follow the trend to make more money.
Disadvantages of Proof of Stake (POS)
Interest is estimated only and at staking it will not reach that level.
Example: BUZZ is theoretically 100% per month but last month it was only 88%.
Staking is not always profitable if the Stake rate is lower than the downside rate of the coin you will lose.
Example: You stake 100 coin X at $ 1> cost $ 100 with 10% stake per month.
After the first month, you will have 110 coin and if the price is constant then you will pay $ 10 / month. But the price of coin X is only $ 0.5 / coin x 110 coin by $ 55 => you lose $ 45./.
