Peercoin (PPC): Das bietet die effiziente Alternative zum ...

r/CryptoMarkets

FOREX community for cryptocurrencies. Tags: mt gox bitcoin, long term potential, open source exchange, low inflation rate, demand and price, technical analysis, fundamentals, Bitcoin, Ethereum, Litecoin, Monero, Dash, Augur, token, volume, oscillator, RSI, stochastic, trend, sentiment, strategy, scam, coin, coinmarketcap, altcoin, Peercoin, script, blockchain, PoW, PoS, Proof of Work,
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Cryptocurrency News

Community curation of the latest cryptocurrency news.
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Cryptocurrency news and discussions.

Cryptocurrency news and discussion. Bitcoin, Litecoin, Ethereum, Ripple, Monero, Dash, NEO, IOTA Lightning Network, SegWit, Augur, Steemit, privacy, ICO, block time, Proof of Work, Proof of Stake, NEM, Peercoin, Vertcoin, Iconomi, Dogecoin, Zcash, BitShares, Walton, mining, hashrate, mining difficulty, blockchain, coinbase, merkle, transaction rate, decentralized exchange, annual inflation rate, total market cap, bitcoin cash, BTC
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#B1P #APP support the following coins: Bitcoin, Litecoin, Dogecoin, Dash, Pivx, Digibyte, Ravencoin, Feathercoin, Bitcoin ONE, Bitcoin Turbo Koin, ReddCoin & Peercoin. https://play.google.com/store/apps/details?id=com.b_one_payment.wallet #ieo #ico #crypto #cryptocurrency #blockchain #bitcoin #ethe

#B1P #APP support the following coins: Bitcoin, Litecoin, Dogecoin, Dash, Pivx, Digibyte, Ravencoin, Feathercoin, Bitcoin ONE, Bitcoin Turbo Koin, ReddCoin & Peercoin. https://play.google.com/store/apps/details?id=com.b_one_payment.wallet #ieo #ico #crypto #cryptocurrency #blockchain #bitcoin #ethe submitted by LeahCrypto38 to cryptocurrencynews [link] [comments]

Bitcoin Air will be the first dual-chain bilaterally operating Blockchain. By forking the UTXO and base of Bitcoin, and merging it with the Hybrid PoS/PoW capabilities of Peercoin https://bitcoinair.org/ #BitcoinAir #AirProtocol #LightAsAir #XAP

Bitcoin Air will be the first dual-chain bilaterally operating Blockchain. By forking the UTXO and base of Bitcoin, and merging it with the Hybrid PoS/PoW capabilities of Peercoin https://bitcoinair.org/ #BitcoinAir #AirProtocol #LightAsAir #XAP submitted by denzkilim to CryptocurrencyICOs [link] [comments]

Bitcoin Air will distribute coins to holders of Bitcoin and Peercoin during the time of the blockchain snapshot which will be made on the 22nd of November

Bitcoin Air will distribute coins to holders of Bitcoin and Peercoin during the time of the blockchain snapshot which will be made on the 22nd of November submitted by cryptoallbot1 to cryptoall [link] [comments]

The SteepCoin project is based on own Blockchain, so SteepCoin Network generates own STEEP Coins. The SteepCoin Core is based on Bitcoin, PeerCoin, NovaCoin, Dash ( DarkCoin), BlackCoin protocols.

The SteepCoin project is based on own Blockchain, so SteepCoin Network generates own STEEP Coins. The SteepCoin Core is based on Bitcoin, PeerCoin, NovaCoin, Dash ( DarkCoin), BlackCoin protocols. submitted by SteepC0in to u/SteepC0in [link] [comments]

Is there a Peercoin wallet that doesn't download the entire blockchain? Like Multibit for Bitcoin.

Multibit, for example, scans the blockchain for all references to your addresses, but doesn't download the entire blockchain (which is around 20gb for Bitcoin). Is there a Peercoin wallet that does the same? I'm very low on hard drive space on this computer.
submitted by lecherous_hump to peercoin [link] [comments]

Somebody just exploited an OpenSSL bug that caused a network fork between 64bit Unix-like systems and 32bit machines + all Windows in the Peercoin blockchain. This exploit was completely neutralized in Bitcoin on July when BIP66 became effective.

Somebody just exploited an OpenSSL bug that caused a network fork between 64bit Unix-like systems and 32bit machines + all Windows in the Peercoin blockchain. This exploit was completely neutralized in Bitcoin on July when BIP66 became effective. submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Gridcoin 5.0.0.0-Mandatory "Fern" Release

https://github.com/gridcoin-community/Gridcoin-Research/releases/tag/5.0.0.0
Finally! After over ten months of development and testing, "Fern" has arrived! This is a whopper. 240 pull requests merged. Essentially a complete rewrite that was started with the scraper (the "neural net" rewrite) in "Denise" has now been completed. Practically the ENTIRE Gridcoin specific codebase resting on top of the vanilla Bitcoin/Peercoin/Blackcoin vanilla PoS code has been rewritten. This removes the team requirement at last (see below), although there are many other important improvements besides that.
Fern was a monumental undertaking. We had to encode all of the old rules active for the v10 block protocol in new code and ensure that the new code was 100% compatible. This had to be done in such a way as to clear out all of the old spaghetti and ring-fence it with tightly controlled class implementations. We then wrote an entirely new, simplified ruleset for research rewards and reengineered contracts (which includes beacon management, polls, and voting) using properly classed code. The fundamentals of Gridcoin with this release are now on a very sound and maintainable footing, and the developers believe the codebase as updated here will serve as the fundamental basis for Gridcoin's future roadmap.
We have been testing this for MONTHS on testnet in various stages. The v10 (legacy) compatibility code has been running on testnet continuously as it was developed to ensure compatibility with existing nodes. During the last few months, we have done two private testnet forks and then the full public testnet testing for v11 code (the new protocol which is what Fern implements). The developers have also been running non-staking "sentinel" nodes on mainnet with this code to verify that the consensus rules are problem-free for the legacy compatibility code on the broader mainnet. We believe this amount of testing is going to result in a smooth rollout.
Given the amount of changes in Fern, I am presenting TWO changelogs below. One is high level, which summarizes the most significant changes in the protocol. The second changelog is the detailed one in the usual format, and gives you an inkling of the size of this release.

Highlights

Protocol

Note that the protocol changes will not become active until we cross the hard-fork transition height to v11, which has been set at 2053000. Given current average block spacing, this should happen around October 4, about one month from now.
Note that to get all of the beacons in the network on the new protocol, we are requiring ALL beacons to be validated. A two week (14 day) grace period is provided by the code, starting at the time of the transition height, for people currently holding a beacon to validate the beacon and prevent it from expiring. That means that EVERY CRUNCHER must advertise and validate their beacon AFTER the v11 transition (around Oct 4th) and BEFORE October 18th (or more precisely, 14 days from the actual date of the v11 transition). If you do not advertise and validate your beacon by this time, your beacon will expire and you will stop earning research rewards until you advertise and validate a new beacon. This process has been made much easier by a brand new beacon "wizard" that helps manage beacon advertisements and renewals. Once a beacon has been validated and is a v11 protocol beacon, the normal 180 day expiration rules apply. Note, however, that the 180 day expiration on research rewards has been removed with the Fern update. This means that while your beacon might expire after 180 days, your earned research rewards will be retained and can be claimed by advertising a beacon with the same CPID and going through the validation process again. In other words, you do not lose any earned research rewards if you do not stake a block within 180 days and keep your beacon up-to-date.
The transition height is also when the team requirement will be relaxed for the network.

GUI

Besides the beacon wizard, there are a number of improvements to the GUI, including new UI transaction types (and icons) for staking the superblock, sidestake sends, beacon advertisement, voting, poll creation, and transactions with a message. The main screen has been revamped with a better summary section, and better status icons. Several changes under the hood have improved GUI performance. And finally, the diagnostics have been revamped.

Blockchain

The wallet sync speed has been DRASTICALLY improved. A decent machine with a good network connection should be able to sync the entire mainnet blockchain in less than 4 hours. A fast machine with a really fast network connection and a good SSD can do it in about 2.5 hours. One of our goals was to reduce or eliminate the reliance on snapshots for mainnet, and I think we have accomplished that goal with the new sync speed. We have also streamlined the in-memory structures for the blockchain which shaves some memory use.
There are so many goodies here it is hard to summarize them all.
I would like to thank all of the contributors to this release, but especially thank @cyrossignol, whose incredible contributions formed the backbone of this release. I would also like to pay special thanks to @barton2526, @caraka, and @Quezacoatl1, who tirelessly helped during the testing and polishing phase on testnet with testing and repeated builds for all architectures.
The developers are proud to present this release to the community and we believe this represents the starting point for a true renaissance for Gridcoin!

Summary Changelog

Accrual

Changed

Most significantly, nodes calculate research rewards directly from the magnitudes in EACH superblock between stakes instead of using a two- or three- point average based on a CPID's current magnitude and the magnitude for the CPID when it last staked. For those long-timers in the community, this has been referred to as "Superblock Windows," and was first done in proof-of-concept form by @denravonska.

Removed

Beacons

Added

Changed

Removed

Unaltered

As a reminder:

Superblocks

Added

Changed

Removed

Voting

Added

Changed

Removed

Detailed Changelog

[5.0.0.0] 2020-09-03, mandatory, "Fern"

Added

Changed

Removed

Fixed

submitted by jamescowens to gridcoin [link] [comments]

What you need to know about Blockchain

What you need to know about Blockchain
Category and version
The Blockchain system is divided into 3 main categories:
Public: Anyone has the right to read and write data on Blockchain. The process of validating transactions on this Blockchain requires thousands or tens of thousands of nodes. Therefore, to attack this Blockchain system is impossible because the cost is quite high. For example: Bitcoin, Ethereum ...
Private: User is only allowed to read data, not write because this belongs to an absolutely trusted third party. This organization may or may not allow users to read data under certain circumstances. The third party has the sole discretion to decide any changes on the Blockchain. Since this is a Private Blockchain, the transaction confirmation time is quite fast because only a small number of devices are required to validate the transaction. For example, Ripple is a Private Blockchain, this system allows 20% of the nodes to be fraudulent and only the remaining 80% to operate stably.
Permissioned: Also known as Consortium, a form of Private but adds a certain number of features, combining "belief" when participating in Public and "absolute trust" when participating in Private. For example: Banks or joint venture financial institutions will use Blockchain for themselves. I believe this site can give you more knowledge: Bitcoin exchange.

https://preview.redd.it/ve887fn2z8t51.jpg?width=960&format=pjpg&auto=webp&s=dce795f360c03db058e78c882781663feafc6080
In the present, Blockchain is divided into 3 versions:
Blockchain 1.0 - Currency and Payment: The main application of this version is cryptocurrency: including currency conversion, remittances and the creation of digital payment systems. This is also the area most familiar to us that sometimes quite a lot of people mistake Bitcoin and Blockchain as one.
Blockchain 2.0 - Finance and Market: Application of financial and banking processing: to scale up Blockchain, bring in financial and market applications. Assets include stocks, checks, debt, title and anything related to an agreement or a contract.
Blockchain 3.0 - Designing and Monitoring Operations: Bringing Blockchain beyond financial borders, and into fields like education, government, health, and the arts. In these areas, there will be multiple types like physical, digital or human in nature.
Blockchain consensus algorithm
The consensus mechanism in Blockchain can be understood as the way that Byzantine generals can reach consensus to win together. The following are common types of consensus mechanisms:
Proof of Work: Common in Bitcoin, Ethereum, Litecoin, Dogecoin, and most cryptocurrencies. Consumes quite a lot of electrical energy.
Proof of Stake: Popular in Decred, Peercoin and in the future, Ethereum and many other cryptocurrencies. More decentralized, less energy consuming and not easily intimidated.
Delegated Proof-of-Stake: Popular in Steemit, EOS, BitShares. Cheap transaction costs; extendable; high energy efficiency. However, there is still a bit of focus because this algorithm selects a trusted person to authorize.
Proof of Authority: This is a centralized model commonly seen in POA.Network, Ethereum Kovan testnet. High performance, good scalability.
Proof-of-Weight: Popular in Algorand, Filecoin. Customizable and good scalability. However, the development process will be a big challenge.
Byzantine Fault Tolerance: Popular in Hyperledger, Stellar, Dispatch, and Ripple. High productivity; low cost; extendable. However, it is still not completely reliable. This algorithm has 2 versions:
Practical Byzantine Fault Tolerance (Anti-fraud consensus / Byzantine General surrounded Blockchain in practice)
Federated Byzantine Agreement (Byzantine Alliance by Consensus)
Directed Acyclic Graphs (Topological Algorithm): Commonly found in Iota (Tangle technology), Hashgraph, Raiblocks / Nano (Block-lattice technology), is a competitor of Blockchain.
Why is Blockchain supported?
The 3 main properties of Blockchain technology that have helped it to achieve a widespread welcome are:
Decentralized (decentralized)
transparent
Invariant
Decentralization
Before Bitcoin and Blockchain came along, we were used to centralized services. Specifically, you have a centralized entity that stores all of the data, and you must interact with this entity to retrieve the requested information.
Another example of a centralized system is banking. They store all your money, and the only way you can use it is through the bank.
The traditional client-server model is a good example of centralization:
What is Blockchain technology?
When you go to Google to search for something, you will send a query to the server and the results will return to you with the relevant information. It's also the simple client-server model.
Although centralized systems have been so familiar to us for many years, they do have some flaws:
submitted by Ill_Preparation_2814 to u/Ill_Preparation_2814 [link] [comments]

Peercoin v0.9 (Codename Strider) Released - Includes Update to PoS Reward Economics - Hard Fork is June 8th, 2020 - Upgrade Today!

Peercoin v0.9 (Codename Strider) Released - Includes Update to PoS Reward Economics - Hard Fork is June 8th, 2020 - Upgrade Today!
NOTE: If you are new to Peercoin, check out the Peercoin Primer, a short 5 part video series covering the basic fundamentals of Peercoin.

https://preview.redd.it/3v73ap26c4z41.png?width=600&format=png&auto=webp&s=67e30f6f72e7e7ba1370f74a3ad952a3d951f9dd

Peercoin v0.9 Released!

We are pleased to announce that after many hard months of work, Peercoin v0.9 (Codename Strider) is complete and a hard fork is planned for Monday, June 8th, 2020 at 12:00:00 UTC. You must upgrade your wallet client before then!

Changelog:

Peercoin release v0.9.0
  • RFC-0019: PoW Block Spacing
  • RFC-0018: PoS Rewards Adjustment
  • RFC-0017: Limit Effective Coinage to One Year
  • RFC-0015: Reduce Time Drift
  • allow staking=0 command to disable minting
  • ability to filter out mint transactions in the QT wallet

Summary

While Peercoin v0.8 (Mantis) was largely about modernizing the codebase and improving the technical capabilities of the reference node software, the v0.9 (Strider) development cycle was about the economics of the Peercoin cryptocurrrency.
Both the PoW and PoS aspects of the network have been modified. Proof-of-Work changes are rather minimal; in summary target block spacing has been set to 60 minutes, rather than having dynamic PoW block spacing target. Block spacing is currently approximately 60 minutes anyway, so this may not sound like a big change, but it stops some PoW pools from trying to game the system. By making PoW more predictable, RFC-0019 brings inflationary stability to the overall system.
That change is minor when compared to the modification of the Proof-of-Stake side of the system. Some of you may have been following the discussion on RFC-0011, which was ongoing for over a year, and you may have noticed that RFC-0011 was rejected about two weeks ago and replaced with RFC-0018.
In my personal opinion, RFC-0011 is a great idea, probably the best idea thrown around here in the last couple of years, but ultimately it's too complex and we could not get consensus about it. The gist of both RFC-0011 and RFC-0018 is that the Peercoin money supply inflates at a rate of 1% on paper, but we are nowhere near that in practice.
In the old system, in order to have PoS inflation at 1%, a full 100% of all peercoins would have to start minting and solving blocks. This is simply impossible. In reality, over the last couple years Peercoin's PoS inflation has only been between 0.10% and 0.20%, which is far from the "promised" annual 1%. Due to the very rough history of this beautiful blockchain, namely the closure of btc-e, dozens of exchange hacks and closures, as well as a couple of de-listings, we are in a situation today where nearly half of the monetary supply has not been moved for over two years and we can consider those coins lost for all intents and purposes.
The basic principle of RFC-0011 was the following: the Peercoin network promises a steady inflation of 1% on monetary supply, and if you want a cut of it: mint. In essence, if only 20% of all peercoins are minting, the effective reward for active minters would be closer to 5% per year. However, the problem with this scheme is that minters would try to game the system and only mint when minting participation is low. Thus, we came up with RFC-0018, which yields similar results, but keeps the reward calculation simple and prevents gaming of the algorithm. You can read more about the change here.
Long story short, the network will reward active minters more, while keeping the overall inflation around 1%.
Accompanied with an expected inflation drop from increasing PoW hashrate, overall monetary inflation will largely remain unchanged, and will be more stable.
Other changes are minor and do not change the behavior of the network. RFC-0017 is just a consequence of RFC-11, and it stops minters from going offline for longer than a year and coming back to mint. We did not see this as fair, so the coinage counter is reset after a year now. Limiting coinage disincentivizes extremely long term periodic minting, thereby making continuous minting more attractive.
-- Peerchemist, Peercoin Project Lead

Upgrade Instructions

Before installation, make sure to backup your wallet from the main menu.
The v0.9 client can be downloaded from the wallets page of peercoin.net. For users upgrading from v0.8, upgrade instructions can also be found on that page.
For the minority of users that may have skipped v0.8 and are upgrading from v0.7 or earlier, please check these additional instructions from the previous v0.8 release thread as you will need to go through the additional process of rebuilding your block database. If you need help with installation, leave a comment below.

Conclusion

To stay informed as we get closer to the hard fork date, you can follow the latest Peercoin news on our forums, our Twitter, or Reddit.
Other places to follow us:
Facebook LinkedIn BitcoinTalk Youtube Medium
Don't forget you can see the latest updates using the Blockfolio and Delta Apps!
Download Link: https://github.com/peercoin/peercoin/releases/tag/v0.9.0ppc
Final reminder: The upgrade deadline is planned for June 8th, 2020 at 12:00:00 UTC
submitted by Sentinelrv to CryptoCurrency [link] [comments]

What Is Staking: The Ultimate Beginner’s Guide

What Is Staking: The Ultimate Beginner’s Guide
Staking means you are holding your cryptocurrency funds in a wallet and thus support the functionality of a blockchain system. Stakeholders lock their cryptos in their wallets. In return, they are rewarded by the network.

Proof-of-Stake versus Proof-of-Work.

What Is Proof Of Stake

To clear up the idea of staking, we should explain the Proof-of-Stake (PoS) consensus mechanism. PoS and its versions are widely used in many blockchain networks.
The pioneers of PoS were (most likely) Sunny King and Scott Nadal. They were the first to describe and implement this idea for the crypto project Peercoin (PPC). Originally, its blockchain was using a hybrid of PoW and PoS. It made the network less dependent on the alternative protocol and attracted more participants. They were miners who came to compete for a reward.

Delegated Proof-of-Stake in BitShares versus Proof-of-Work in Bitcoin.

Delegated Proof Of Stake

Two years later, Daniel Larimer, a prominent software developer, and crypto entrepreneur introduced a modified version of PoS. Its name was Delegated Proof of Stake (DPoS). The first network to apply it was Bitshares. Larimer also launched EOS and Steem. Both projects adopted the Delegated Proof of Stake protocol for their blockchains.
What is the key feature of DPoS? This mechanism allows all network users to ‘convert’ their crypto holdings into votes. These votes are used to elect trusted witnesses (‘delegates’). They will manage the blockchain on your behalf. The delegates validate the transactions and make sure the network functions as it should. The weight of your vote depends on how big your stake is. As a stakeholder, you get a regular reward for keeping your crypto in the network.

DPoS Pros

The DPoS model addresses the important problems of PoS and PoW blockchains. First of all, it’s the scalability issue. DPoS improves network capacity by increasing the speed of transaction processing. It is possible because the DPoS model allows reaching consensus much faster, as it needs fewer nodes to validate a transaction. On the dark side, Delegate Proof of Stake usage promotes centralization: a DPoS network relies on a limited group of delegates for its operation.

How Staking Works

As we said earlier, staking means holding cryptocurrency or tokens to support a network operation and getting a reward for it. Naturally, this process is typical for blockchains using the PoS protocol or any of its versions.
Unlike PoW, this protocol does not rely on miners who validate blocks by doing ‘work’. This work consists of solving math puzzles using increasingly powerful mining hardware. Instead, the mining power of any network participant depends on how many coins they commit to stake. It allows a PoS-based blockchain to avoid usage of ASICs and other equipment that consumes a great amount of electricity.

Advantages Of Staking

The bigger is the amount you stake, the better are your chances to become the validator for the next block and grab the reward. The PoS model saves you a lot of money. You don’t have to invest in expensive mining hardware and cooling equipment. Also, you don’t have to pay huge electricity bills every month. You still spend some money, but it’s a direct cryptocurrency investment. Every PoS network features its own ‘staking currency’.
The increased scalability, ensured by staking, is one of the main reasons why the Ethereum plans to move to this model in 2020 when it adopts the Casper protocol.
There are networks that prefer DPoS. In this model, you may use other network participants to signal your support for some event. It means you delegate decision making to the nodes you trust.
In fact, these delegates are responsible for handling the blockchain, as they deal with the issues of major importance. They play a key role in consensus achievement and make management decisions.

Consensus protocols compared: PoW, PoS and DPoS.

Network Inflation

There are blockchains who pay a staking reward in the form of a fixed percentage, the so-called ‘inflation rate’. The purpose is to persuade more people to stake their coins. It’s like a bank encouraging you to keep your money with them and not at home.
Until recently, Stellar was a typical example of such a scheme. Their fixed inflation rate was 1%. Every week, the network used to distribute ‘inflation money’ among the holders, who kept their funds in the staking pool. The main pro of this model is that you get a fixed bonus regularly.
For example, a Stellar user who was holding 10,000 XLM for 1 year, could expect the reward of 100 XLM. This information was open to all the users, helping them to decide in favor of staking. It motivated the people who preferred a moderate but predictable reward to a big but random one.
In the 4th quarter of 2019, Stellar abandoned the inflation scheme.

Staking Pool

An idea behind staking pools is simple. To form a pool, many network stakeholders combine together. It increases their collective odds of validating a new block and getting rewarded for it. Like in a PoW mining pool, the reward is proportionately split among all the participants. The money you put in, the bigger is your share.
Pooling might be the best staking solution if your network has a high entry barrier. In practice, it means that you have to contribute a large amount of money to enter, but you cannot afford it alone. Note, that running a pool is not free, as there are maintenance and development costs. As a result, you often have to pay a ‘membership fee’ to the pool providers. Normally, it’s a fixed percentage of your reward share.
Besides, pools may offer additional benefits related to withdrawal time, minimum balance, etc. It attracts new participants and results in a greater degree of decentralization of the network.

Cold Staking

Cold staking is when you stake your crypto using a cold (hardware) wallet. Such a wallet has no connection to the Internet. There are networks that let you stake the funds kept in cold storage. The biggest benefit of cold staking is that your funds are 100% safe. For large stakeholders, it’s the top priority. If a stakeholder takes the crypto out of the cold wallet, their rewards are discontinued.

Future Of Staking

The number of users seeking to contribute their assets to participate in blockchain management and decision-making grows. It means staking becomes popular. To meet the demand, the entry process is becoming more user-friendly. Accordingly, more people will be taking an active part in the development of their blockchain ecosystems.

Conclusion

In conclusion, staking is an innovative investment tool. It can compete with traditional ones in terms of stability. In terms of assets growth potential, it’s superior to them.
P.S. Hope you found this article interesting and useful. If you want to read more articles on crypto, finance, and blockchain check out our blog.
submitted by EX-SCUDO to CryptoCurrencies [link] [comments]

Proof Of Stake

Proof Of Stake
https://preview.redd.it/7nfccptuway41.png?width=1200&format=png&auto=webp&s=0103130266549ba8ae21e63d837b67528e39f59c
In my previous article, I have covered one of the most famous consensus mechanism i.e Proof of Work. But like any technology, that protocol also has a certain drawback, and to overcome these issues another protocol has been developed i.e Proof Of Stake.
Proof Of Stake, as the name implies depends upon the stake of a validator. Like Miners in PoW, PoS consists of a group of validators. These validators use a pseudo-random algorithm to select a node that will act as a validator for the next block. The validator was decided based on a combination of different factors which includes the staking age and the node’s wealth. This means that the more coin one has, the more mining power he or she will have. Thus unlike PoW which is quite a power extensive because it depends upon solving a complex computational puzzle to decide the next block, the validation and generation of next block in PoS solely depend on the owner's stake. In Proof of Stake systems, the blocks that were mined are termed as ‘forged’.
This algorithm was introduced in 2011 with the idea to solve the problems with Proof of Work. Though both these algorithm is used to achieve consensus in the blockchain network, the underlying process to reach the final goal is different.
Some of the crypto coins like Nxt (NXT), Blackcoin, ShadowCoin, and Peercoin (PPC) uses the PoS method. Ethereum (ETH) is also planning to switch to a PoS system.
How do PoS works?
The blockchain network consists of a series of a node which acts as a miner (Forge in this case). Any network user who wants to participate in the forging activity needs to stake a certain amount of coin into the network. One can do this by sending a special transaction that will lock up their base cryptocurrency(in Ethereum's case, ether). The stake size determines the chances of a node to be selected as the next validator who will forge the next block. The bigger the stake, the higher the chances.
The newly created node which got selected to forge the next block checks the validity of the transactions in the block. If the transactions are valid, it then signs the block and adds it to the blockchain network. The node receives the transaction fees that are associated with the transactions in the block as a reward.
In the case when the node doesn’t want to serve as a forger, it can withdraw its stake along with the rewards earned. The network verifies and releases the node once it successfully checks that the node has not been involved in any malicious activity.
Advantages of using PoS:-
o Enhanced security.
o Energy-efficient.
o Reduced risk of centralization.
Forge selection method:-
Two unique methods are being used in case there is a requirement of not selecting the node with the maximum stake. These are:-
o Randomized Block Selection
In this method, a node gets selected as the validators which are having a combination of the lowest hash value and the highest stake. The account which will receive the right to forge a block can be easily predicted by each node because the stakes are public
o Coin Age Selection method
In this method, a node gets selected as the validators who have kept their stake for a longer period. The Coin age is calculated by multiplying the number of days the coins have been reserved as stake by the number of coins that are available as stake.
Coin age=no.of days coined staked *total no of coins staked
The coin age of a node has been reset to zero once it forged a block. To forge another block, the node has to wait for a certain period. Hence this method prevents the large stake nodes from dominating the blockchain network.
Different types of PoS
Proof Of Stake can be categorized into two parts:-
o Chain-based proof of stake
This algorithm randomly selects a validator during the time slot (e.g. every period of 10 seconds might be a time slot) available to create a block, and then assign it an authority to create a block with the constraint that the block must point to some previous block. Generally, it points to the last block of the longest chain. Hence over time, the blocks converge into one growing chain.
Blockchain projects that implemented this model are Nxt, Peercoin, Ardor.
o BFT-style proof of stake
This model offers ‘consistency’. Here the randomly chosen validators decide whether a particular block can be included in the chain or not at the end of each round. This type could be favored for a more “permission” approach. In this case, the consensus on a block does not depend on the length or size of the chain.
Blockchain projects that implemented this model are Neo, Tendermint, Polkadot, Hyperledge Fabric.
How it reduces the risk of a Network attack?
Since this model works on the concept of the stake owned by the validator, thus to effectively control the network and approve fraudulent transactions, a node has to own a majority stake in the network (also known as the 51% attack) which is quite impractical because if a hacker tries to purchase 51% of the total number of coins, the market reacts by the fast price appreciation.
Also, wherever the network detects any fraudulent transaction, not only the forger node loses a part of its stake but is also restricted from participating in future activities. Till the time the cost of staking is higher than the reward, the validator is at a loss in case of attempting fraud.
With the “Casper” upgrade underway for Ethereum, Proof-of-Stake (POS) model is gaining more popularity among other Blockchain consensus designs. With this upgrade, the protocols will set certain criteria that will identify a bad validator. The bad validator would lose their deposit if proven, thus making this model more secure.
Read more: Understanding different Consensus Mechanisms, Proof Of Work Explained
#bitcoin #ethereum #consensus #pos #blockchain
submitted by RumaDas to u/RumaDas [link] [comments]

Understanding different Consensus Mechanisms

Understanding different Consensus Mechanisms

https://preview.redd.it/a8khq1zpfdx41.png?width=1920&format=png&auto=webp&s=a572570acbf0ab6a07dcf8af86009b6917295935
The BlockChain network consists of a series of nodes that form a distributed architecture. These nodes need to be aligned and run synchronously to maintain security in the network. Thus the concept of Consensus is devised to maintain harmony in the blockchain network.
A Consensus mechanism can be defined as a process where all the nodes abide by the same rules or protocols. These consensus mechanisms are very important for a blockchain network to function properly. The network is shared by numerous users who do transactions. These transactions are further validated to add it to the block and then to the chain. Thus the transactions, as well as the network, need to be regularly checked to maintain the safety and security of the network. Thus a good consensus mechanism or protocol is mandatory to protect the network from various attacks.
These protocols should be efficient, secure, reliable, and real-time so that they can check the authenticity of transactions and to which the network participants commonly agreed to the outcome.
Different Consensus Mechanism
There are different kinds of consensus mechanism which are based on different principles.
https://preview.redd.it/92dw63bifdx41.jpg?width=595&format=pjpg&auto=webp&s=d461c4099a4e3aaa3c4cae69eb7c535dd21c6193
1. Proof of Work (PoW)
Proof of Work was the first-ever consensus mechanism and was adopted by Bitcoin. It became very famous after that and was later implemented on Ethereum, Litecoin, etc. The algorithm is based on solving a complex mathematical puzzle which is very hard to crack. The node which solves it then broadcasts the outcome for verification. Once verified, the blocks are added to the network. This algorithm also rewards the miner who solves the puzzle.
Though PoW has provided the desired security which is very much needed to make the network bulletproof against hackers it was criticized over the years due to its high energy and resource requirements which are needed to solve the complex mathematical puzzles. But this is also the reason why the Bitcoin network is so valuable.
2. Proof of Stake (PoS)
This algorithm is based upon the stake of validators. The validators are decided based on a combination of different factors which includes the staking age and the node’s wealth. Any network user who wants to participate in the forging activity stake a certain amount of coin into the network. This is done by sending a special transaction that will lock up their base cryptocurrency (in Ethereum's case, ether). The stake size determines the chances of a node to be selected as the next validator who will forge the next block. The bigger the stake, the higher the chances.
This algorithm was introduced in 2011 with the idea to solve the problems with Proof of Work.
Some of the crypto coins like Nxt (NXT), Blackcoin, ShadowCoin, and Peercoin (PPC) use the PoS method. Ethereum (ETH) is also switching to a PoS system.
Advantages:
· Enhanced Security
· More decentralization
· Less energy
· Higher transparency
3. Proof of Authority (PoA)
In the PoA consensus model, the identity is chosen as the form of stake rather than staking tokens. It is an enhanced version of Proof of Stake. A group of validators is already chosen as the authority. Their task is to check and validate all the newly added identities, validate transactions, and blocks to add to the network. To ensure efficiency and security in the network the validator group is usually kept small (~25 or less).
PoA was proposed by a group of developers in March 2017 (coined by Gavin Wood) as a blockchain-based on the Ethereum protocol. It was developed with the idea to solve the problem of spam attacks on Ethereum’s Ropsten test network. The new network was named Kovan. It is the main test network for all Ethereum users today.
Projects using PoA: Kovan, Rinkeby, TomoChain, Swarm City, Go Chain, etc.
Characteristics of a PoA Network:-
· Less energy consumption as compared to PoW.
· No communication is required to reach the consensus between the nodes.
· Network operation is independent of the number of available genuine nodes.
· The chance of a node to become a forge depends upon both its stake and overall holding.
4. DPOS (Delegated Proof of Stake)
In 2014, Dan Larimer developed the Delegated Proof of Stake (DPoS) consensus algorithm. This algorithm is considered more efficient than the preceding PoS mechanism.
A DPoS algorithm is based on a voting system where stakeholders cast their votes to a third-party to outsource the work. These delegates are referred to as witnesses and are responsible for the generation and validation of new blocks. The voting power is proportional to the number of coins each user holds. Also, it varies from project to project. Each delegate presents an individual proposal when asking for votes. The rewards received by the delegates are proportionally shared with their respective electors.
Since a DPoS system is based on a voting system and is maintained by the voters, hence it is directly dependent on the delegates’ reputation. Due to this, the delegates are motivated to be honest and efficient, or else they will get voted out.
Cryptocurrency projects that make use of DPoS consensus algorithm- Bitshares, Steem, Ark, and Lisk.
The main advantage of DPOS is that it is more scalable i.e it can process more transactions per second (TPS) as compared to POW and PoS.
5. Hybrid PoW/PoS
The idea behind developing a hybrid Proof of Work and Proof of Stake systems is to maximize the advantages and minimize the disadvantage of both approaches (PoW/PoS).
This method allows mining and staking to create a balance between those outside the community (the miners) and those inside the community (the stakeholders).In this model, the PoW miners create new blocks that contain transactions to be added to the blockchain. As these blocks have been created, the PoS miners vote on whether or not to confirm them. PoS miners stake a portion of their tokens; the larger the stake, greater will be the voting power. However, rather than counting the total vote count to check the validity of the newly created block, the hybrid consensus mechanism randomly chooses 5 'votes' to determine the validity; if 3 out of the 5 chosen votes are positive, the block is confirmed and added to the blockchain. As a reward, PoW miners receive 60% of the block reward, PoS miners receive 30%, and the remaining 10% is dedicated to developmental efforts.
By using PoS voting, these systems protect the network from a 51% attack because it provides an additional layer of verification.
6. Delegated Byzantine Fault Tolerance (dBFT)
This consensus algorithm was invented by the developers of NEO, one of the world's largest platforms for building and deploying decentralized applications (dApps). The method is very similar to PoS,i.e vote to choose delegates and speakers.
All NEO token holders (ordinary nodes) have the right to vote for delegates irrespective of the number of tokens that they hold.
Any token holder can become a delegate if he fulfills the following criteria:-
· Reliable internet connection.
· Specific equipment.
· 1,000 GAS.
A speaker is chosen randomly out of these delegates. These speakers are expected to keep track of all the transactions and record them on the network. A new block is formed from the transactions that need to be validated. Once formed, the speaker sends the proposal of verifications to the elected delegates. If more than two-thirds of the delegates reach a consensus and validate it, the block is added to the blockchain.
Let me know in the comments what you feel about this article. Do read my other articles where I dig deeper into various technical aspects of Blockchain.
submitted by RumaDas to u/RumaDas [link] [comments]

what we LEARNED from btc, eth, eos, reddit and ipfs

From bitcoin - deflationary coins supply. This protects the loyalty and ownership for the community. No inflation provides confidence to the owners.
From ethereum - merkle patricia trie, state machine transition, stateless mining. The key word is "state", which is a snapshot explanation on a blockchain raw data. The state enables dApp logic. MPT makes permission-less nodes to capture and operate ethereum machine with full data integrity.
From eos - TAPOS, transaction as proof of stake. This might be considered the most important contribution from Dan Larimer than DPOS or STEEM. TAPOS makes history reorg attack on POS/POT very hard to be successful.
From ipfs - libp2p relay. The communication among nodes behind NAT is inhibiting mobile phones to form up meaningful p2p network. IPFS-libp2p provides relay service to make it happen. The multi-address system allows mobile unit be able to stand out of the firewall. This has profound result in many application design.
From reddit - community based social media. TAU decentralized forum is essentially a community based social media rather than individual such as in twitter and facebook. The community provides computing power, network storage, check & balance, security and coins economy.
submitted by wuzhengy1018 to Tau_coin [link] [comments]

Como empezar a ganar dinero por internet

Como empezar a ganar dinero por internet

Como empezar a ganar dinero por internet

hoy les traigo una guía de como empezar a ganar dinero por internet mediante el uso de faucets, esta es una pequeña guía para nuevos emprendedores que quieren empezar en el negocio de las criptomonedas y no saben por donde empezar.

Que es una Criptomoneda

Las criptomonedas son un tipo de moneda digital, que son aquellas que no existen de forma física pero que sirven como moneda de intercambio, permitiendo transacciones instantáneas a través de internet y sin importar las fronteras.
En el año 2009 apareció la primera criptomoneda completamente descentralizada, el Bitcoin, que fue creado por Satoshi Nakamoto junto con el software que los sustenta (blockchain). A día de hoy no se sabe quién está detrás del nombre del creador. La aparición del bitcoin fue tan innovadora que los términos de Criptomoneda y Bitcoin se funden en uno sólo y es indistinto hablar de una sin la otra.
En nuestros días, han aparecido más criptomonedas basadas en la pionera Bitcoin, que se conocen como altcoin, algunas de ellas son Namecoin (2011), Litecoin (2011) o Peercoin (2012)

Que es un faucet

Un faucet es un sistema de recompensa que regala cantidades pequeñas de criptomonedas.
las faucets son páginas web o aplicaciones para móviles. El significado de faucet en español es grifo, por lo que también es usual encontrarlos así en foros o páginas web sobre bitcoin.
Las faucets de bitcoin nacieron con la intención de promocionar las criptomonedas, difundir cómo funciona bitcoin y ponerla al alcance de todos sin necesidad de conocimientos tecnológicos ni de equipos potentes. El primer grifo fue creado por Gavin Andresen en 2010 y se llamaba bitcoin faucet. Inicialmente regalaba 5 bitcoins por visita.
Los grifos bitcoin se financian mediante publicidad y a través de donaciones. Actualmente siguen siendo muy populares y se han convertido en casi en una tradición que se ha extendido a otras criptomonedas, desde Bitcoin Cash a Dogecoin.

Por que empezar con faucets

Las faucets surgieron para intentar dar a conocer las criptomonedas a un mayor público. Por tanto, son una herramienta perfecta si quieres empezar a tener criptomonedas sin realizar ninguna inversión. Son perfectos para aprender para qué sirven las criptomonedas**, cómo funcionan las transacciones y los monederos de las criptomonedas** o incluso saber cómo trabajan los exchanges bitcoin.
Además, indirectamente, puede suponer una fuente de ingresos a largo plazo. Hace 8 años, en 2010, cuando el bitcoin apenas valía un centavo de dolar, se creó el primer faucet que regalaba 5 BTC por visita.
¿Te imaginas obtener hoy en día 5 BTC? Si una persona los hubiera mantenido, tendría más de 30.000 euros o 35.000 dólares americanos en criptomonedas. Si los hubiera vendido en diciembre de 2017, cuando bitcoin alcanzó su precio más alto, habría ganado más de 100.000 dólares.
¿Quién dice que el bitcoin no continuará subiendo? Si confías en las criptomonedas, no tienes excusas para no usar las faucets bitcoin.

Como funcionan los faucets

Todos las faucets de criptomonedas son muy similares y aunque pueden existir variaciones, suelen funcionar de manera muy similar:
  1. Ingresar en la página.
  2. Escribir la dirección de tu monedero bitcoin en un campo de texto.
  3. Completar un captcha o antibot para demostrar que eres humano.
  4. Pulsar un botón para reclamar tu recompensa.
Las faucet están vinculadas a un registro o a un monedero(WALLET). Cada vez que reclames criptomonedas, estos se sumarán a los que ya tienes en tu cuenta. Es decir, actúan de manera acumulativa.
En ocasiones tanto el captcha como el botón para reclamar tus criptomonedas están ocultos entre la publicidad. Con un poco de atención se encuentran sin dificultad. Si notas algún problema a la hora de reclamar tus criptomonedas, recargar la página suele solucionarlo, ya que los captcha pueden bloquearse.
Una vez se utiliza un grifo de criptomonedas, es necesario esperar un tiempo para volver a usarlo. Dicha periodicidad depende de la faucet. Existen algunos que puedes reclamar cada 5 minutos y otros en los que es necesario esperar varias horas. Normalmente a mayor espera, mayores serán las ganancias.
Las recompensas de las faucets acumulativas son modestas, pero son el recurso ideal para las personas que quieran iniciarse en el mundo de la criptomonedas. Con un poco de constancia empezarás a ver ganancias.
Algunos faucet de criptomonedas tienen la opción de multiplicar las ganancias participando en algún juego de azar. Por lo general, puedes perder todo lo obtenido, por lo que no siempre es recomendable utilizar estas opciones.

¿Cómo ganar en una faucet bitcoin?

Para ganar criptomonedas con un faucet únicamente necesitas un monedero(WALLET). en este caso no orientaremos al uso de Coinpot. Este microwallet está integrado con varias faucet. Cuando reclames tus criptomonedas estas se transferirán automáticamente a tu monedero Coinpot. Más adelante en este artículo hablaremos de dichos faucets.

Faucets para Coinpot 2020

Coinpot es un microwallet gratuito para enviar, guardar y recibir criptomonedas. A día de hoy soporta Bitcoin (BTC), Bitcoin Cash (BCH), Dash (DASH), Dogecoin (DOGE) y Litecoin (LTC), aunque está en constante crecimiento.
Una de sus principales ventajas es su integración con diferentes grifos de bitcoin, lo que le ha otorgado una gran popularidad. Es decir, cuando utilices una de las faucets bitcoin asociadas, tus ganancias se transferirán de manera automática a tu monedero Coinpot.
Todos los grifos para Coinpot, son faucets sin mínimo de retiro, ya que tu saldo se transferirá a tu cuenta de Coinpot. Además, son seguras y fáciles de usar.
Abrir una cuenta en Coinpot es sencillo y gratuito. Únicamente te solicita un correo electrónico y una contraseña. Es muy importante que el correo electrónico que indiques sea el mismo que utilices en las faucets, ya que es lo utiliza para asociar las cuentas. Puedes registrarte en el siguiente enlace: Coinpot
En los últimos meses han ido integrando nuevas funcionalidades como: Un multiplicador, un sistema de lotería, un sistema de minado de criptomonedas o una criptomoneda propia (Coinpot Token).
A principios de 2019 incorporaron un nuevo sistema de recompensas. Según tu actividad en sus diferentes faucets o en sus funcionalidades, recibirás pagos en Coinpot Tokens. Estos tokens podrás convertirlos más tarde en la criptomoneda que prefieras.
LISTA DE FAUCETS
Una vez ayas creado tu cuenta coinpot ya puedes empezar a usar los siguientes faucets solo necesitas escribir el correo electrónico con el que creaste tu cuenta coinpot sin necesidad de ningún registro y tus ganancias se transferirán directamente a tu cuenta coinpot.

![img](0c3v9f2nkav41 " ")
-----------------------------------------------------Moon Dogecoin--------------------------------------------------

https://preview.redd.it/1hrcx9bvnav41.png?width=310&format=png&auto=webp&s=ecf699b6b237e0dd25085ad58bb7db3c74a2eac3
-------------------------------------------------------Moon Bitcoin----------------------------------------------------

https://preview.redd.it/hb81x5j5oav41.png?width=264&format=png&auto=webp&s=e142c17259211ea339e121d7200797dd364c3980
--------------------------------------------------------Moon Cash------------------------------------------------------

https://preview.redd.it/nkb8du9doav41.png?width=275&format=png&auto=webp&s=02ced4d3efc70841aaa98dd191a339aa9860d7d9
------------------------------------------------------Moon Litecoin----------------------------------------------------

https://preview.redd.it/p15hn41joav41.png?width=243&format=png&auto=webp&s=b468c393ea875dc3294afb12eb954b2a657acbf3
-------------------------------------------------------Moon Dash------------------------------------------------------

Una recomendación personal es de mi parte es que uses los 5 faucets solo te llevara unos 10-15minutos reclamar todas las recompensas.
También aconsejo usar un navegador como Brave Browser si quieres ver mayores ganancias, pues este navegador te paga por solo usarlo y si vas a usar estos faucets no esta demás un ingreso extra.

https://preview.redd.it/m8xb447qqav41.jpg?width=225&format=pjpg&auto=webp&s=32f6048d3bd0064a8f492552fbb900939a7d4b01
------------------------------------------------------Brave Browser---------------------------------------------------

Brave Browser es un navegador muy cómodo y ademas muy seguro a la hora de navegar por internet, Brave Browser paga a sus usuarios por usar su navegador en su propia moneda BAT tokens la cual puede cambiarse por casi cualquier tipo de moneda.
Espero Les aya resultado util esta guía pronto estaré trayéndoles nuevos métodos y tips para triunfar en el mundo de la criptomoneda.

submitted by AzazelONNI to u/AzazelONNI [link] [comments]

What Is Staking: The Ultimate Beginner’s Guide

What Is Staking: The Ultimate Beginner’s Guide
Staking means you are holding your cryptocurrency funds in a wallet and thus support the functionality of a blockchain system. Stakeholders lock their cryptos in their wallets. In return, they are rewarded by the network.

Proof-of-Stake versus Proof-of-Work.

What Is Proof Of Stake

To clear up the idea of staking, we should explain the Proof-of-Stake (PoS) consensus mechanism. PoS and its versions are widely used in many blockchain networks.
The pioneers of PoS were (most likely) Sunny King and Scott Nadal. They were the first to describe and implement this idea for the crypto project Peercoin (PPC). Originally, its blockchain was using a hybrid of PoW and PoS. It made the network less dependent on the alternative protocol and attracted more participants. They were miners who came to compete for a reward.

Delegated Proof-of-Stake in BitShares versus Proof-of-Work in Bitcoin.

Delegated Proof Of Stake

Two years later, Daniel Larimer, a prominent software developer, and crypto entrepreneur introduced a modified version of PoS. Its name was Delegated Proof of Stake (DPoS). The first network to apply it was Bitshares. Larimer also launched EOS and Steem. Both projects adopted the Delegated Proof of Stake protocol for their blockchains.
What is the key feature of DPoS? This mechanism allows all network users to ‘convert’ their crypto holdings into votes. These votes are used to elect trusted witnesses (‘delegates’). They will manage the blockchain on your behalf. The delegates validate the transactions and make sure the network functions as it should. The weight of your vote depends on how big your stake is. As a stakeholder, you get a regular reward for keeping your crypto in the network.

DPoS Pros

The DPoS model addresses the important problems of PoS and PoW blockchains. First of all, it’s the scalability issue. DPoS improves network capacity by increasing the speed of transaction processing. It is possible because the DPoS model allows reaching consensus much faster, as it needs fewer nodes to validate a transaction. On the dark side, Delegate Proof of Stake usage promotes centralization: a DPoS network relies on a limited group of delegates for its operation.

How Staking Works

As we said earlier, staking means holding cryptocurrency or tokens to support a network operation and getting a reward for it. Naturally, this process is typical for blockchains using the PoS protocol or any of its versions.
Unlike PoW, this protocol does not rely on miners who validate blocks by doing ‘work’. This work consists of solving math puzzles using increasingly powerful mining hardware. Instead, the mining power of any network participant depends on how many coins they commit to stake. It allows a PoS-based blockchain to avoid usage of ASICs and other equipment that consumes a great amount of electricity.

Advantages Of Staking

The bigger is the amount you stake, the better are your chances to become the validator for the next block and grab the reward. The PoS model saves you a lot of money. You don’t have to invest in expensive mining hardware and cooling equipment. Also, you don’t have to pay huge electricity bills every month. You still spend some money, but it’s a direct cryptocurrency investment. Every PoS network features its own ‘staking currency’.
The increased scalability, ensured by staking, is one of the main reasons why the Ethereum plans to move to this model in 2020 when it adopts the Casper protocol.
There are networks that prefer DPoS. In this model, you may use other network participants to signal your support for some event. It means you delegate decision making to the nodes you trust.
In fact, these delegates are responsible for handling the blockchain, as they deal with the issues of major importance. They play a key role in consensus achievement and make management decisions.

Consensus protocols compared: PoW, PoS and DPoS.

Network Inflation

There are blockchains who pay a staking reward in the form of a fixed percentage, the so-called ‘inflation rate’. The purpose is to persuade more people to stake their coins. It’s like a bank encouraging you to keep your money with them and not at home.
Until recently, Stellar was a typical example of such a scheme. Their fixed inflation rate was 1%. Every week, the network used to distribute ‘inflation money’ among the holders, who kept their funds in the staking pool. The main pro of this model is that you get a fixed bonus regularly.
For example, a Stellar user who was holding 10,000 XLM for 1 year, could expect the reward of 100 XLM. This information was open to all the users, helping them to decide in favor of staking. It motivated the people who preferred a moderate but predictable reward to a big but random one.
In the 4th quarter of 2019, Stellar abandoned the inflation scheme.

Staking Pool

An idea behind staking pools is simple. To form a pool, many network stakeholders combine together. It increases their collective odds of validating a new block and getting rewarded for it. Like in a PoW mining pool, the reward is proportionately split among all the participants. The money you put in, the bigger is your share.
Pooling might be the best staking solution if your network has a high entry barrier. In practice, it means that you have to contribute a large amount of money to enter, but you cannot afford it alone. Note, that running a pool is not free, as there are maintenance and development costs. As a result, you often have to pay a ‘membership fee’ to the pool providers. Normally, it’s a fixed percentage of your reward share.
Besides, pools may offer additional benefits related to withdrawal time, minimum balance, etc. It attracts new participants and results in a greater degree of decentralization of the network.

Cold Staking

Cold staking is when you stake your crypto using a cold (hardware) wallet. Such a wallet has no connection to the Internet. There are networks that let you stake the funds kept in cold storage. The biggest benefit of cold staking is that your funds are 100% safe. For large stakeholders, it’s the top priority. If a stakeholder takes the crypto out of the cold wallet, their rewards are discontinued.

Future Of Staking

The number of users seeking to contribute their assets to participate in blockchain management and decision-making grows. It means staking becomes popular. To meet the demand, the entry process is becoming more user-friendly. Accordingly, more people will be taking an active part in the development of their blockchain ecosystems.

Conclusion

In conclusion, staking is an innovative investment tool. It can compete with traditional ones in terms of stability. In terms of assets growth potential, it’s superior to them.
P.S. Hope you found this article interesting and useful. If you want to read more articles on crypto, finance, and blockchain check out our blog.
submitted by EX-SCUDO to CryptoCurrencyTrading [link] [comments]

What Is Staking: The Ultimate Beginner’s Guide

What Is Staking: The Ultimate Beginner’s Guide
Staking means you are holding your cryptocurrency funds in a wallet and thus support the functionality of a blockchain system. Stakeholders lock their cryptos in their wallets. In return, they are rewarded by the network.

Proof-of-Stake versus Proof-of-Work.

What Is Proof Of Stake

To clear up the idea of staking, we should explain the Proof-of-Stake (PoS) consensus mechanism. PoS and its versions are widely used in many blockchain networks.
The pioneers of PoS were (most likely) Sunny King and Scott Nadal. They were the first to describe and implement this idea for the crypto project Peercoin (PPC). Originally, its blockchain was using a hybrid of PoW and PoS. It made the network less dependent on the alternative protocol and attracted more participants. They were miners who came to compete for a reward.

Delegated Proof-of-Stake in BitShares versus Proof-of-Work in Bitcoin.

Delegated Proof Of Stake

Two years later, Daniel Larimer, a prominent software developer, and crypto entrepreneur introduced a modified version of PoS. Its name was Delegated Proof of Stake (DPoS). The first network to apply it was Bitshares. Larimer also launched EOS and Steem. Both projects adopted the Delegated Proof of Stake protocol for their blockchains.
What is the key feature of DPoS? This mechanism allows all network users to ‘convert’ their crypto holdings into votes. These votes are used to elect trusted witnesses (‘delegates’). They will manage the blockchain on your behalf. The delegates validate the transactions and make sure the network functions as it should. The weight of your vote depends on how big your stake is. As a stakeholder, you get a regular reward for keeping your crypto in the network.

DPoS Pros

The DPoS model addresses the important problems of PoS and PoW blockchains. First of all, it’s the scalability issue. DPoS improves network capacity by increasing the speed of transaction processing. It is possible because the DPoS model allows reaching consensus much faster, as it needs fewer nodes to validate a transaction. On the dark side, Delegate Proof of Stake usage promotes centralization: a DPoS network relies on a limited group of delegates for its operation.

How Staking Works

As we said earlier, staking means holding cryptocurrency or tokens to support a network operation and getting a reward for it. Naturally, this process is typical for blockchains using the PoS protocol or any of its versions.
Unlike PoW, this protocol does not rely on miners who validate blocks by doing ‘work’. This work consists of solving math puzzles using increasingly powerful mining hardware. Instead, the mining power of any network participant depends on how many coins they commit to stake. It allows a PoS-based blockchain to avoid usage of ASICs and other equipment that consumes a great amount of electricity.

Advantages Of Staking

The bigger is the amount you stake, the better are your chances to become the validator for the next block and grab the reward. The PoS model saves you a lot of money. You don’t have to invest in expensive mining hardware and cooling equipment. Also, you don’t have to pay huge electricity bills every month. You still spend some money, but it’s a direct cryptocurrency investment. Every PoS network features its own ‘staking currency’.
The increased scalability, ensured by staking, is one of the main reasons why the Ethereum plans to move to this model in 2020 when it adopts the Casper protocol.
There are networks that prefer DPoS. In this model, you may use other network participants to signal your support for some event. It means you delegate decision making to the nodes you trust.
In fact, these delegates are responsible for handling the blockchain, as they deal with the issues of major importance. They play a key role in consensus achievement and make management decisions.

Consensus protocols compared: PoW, PoS and DPoS.

Network Inflation

There are blockchains who pay a staking reward in the form of a fixed percentage, the so-called ‘inflation rate’. The purpose is to persuade more people to stake their coins. It’s like a bank encouraging you to keep your money with them and not at home.
Until recently, Stellar was a typical example of such a scheme. Their fixed inflation rate was 1%. Every week, the network used to distribute ‘inflation money’ among the holders, who kept their funds in the staking pool. The main pro of this model is that you get a fixed bonus regularly.
For example, a Stellar user who was holding 10,000 XLM for 1 year, could expect the reward of 100 XLM. This information was open to all the users, helping them to decide in favor of staking. It motivated the people who preferred a moderate but predictable reward to a big but random one.
In the 4th quarter of 2019, Stellar abandoned the inflation scheme.

Staking Pool

An idea behind staking pools is simple. To form a pool, many network stakeholders combine together. It increases their collective odds of validating a new block and getting rewarded for it. Like in a PoW mining pool, the reward is proportionately split among all the participants. The money you put in, the bigger is your share.
Pooling might be the best staking solution if your network has a high entry barrier. In practice, it means that you have to contribute a large amount of money to enter, but you cannot afford it alone. Note, that running a pool is not free, as there are maintenance and development costs. As a result, you often have to pay a ‘membership fee’ to the pool providers. Normally, it’s a fixed percentage of your reward share.
Besides, pools may offer additional benefits related to withdrawal time, minimum balance, etc. It attracts new participants and results in a greater degree of decentralization of the network.

Cold Staking

Cold staking is when you stake your crypto using a cold (hardware) wallet. Such a wallet has no connection to the Internet. There are networks that let you stake the funds kept in cold storage. The biggest benefit of cold staking is that your funds are 100% safe. For large stakeholders, it’s the top priority. If a stakeholder takes the crypto out of the cold wallet, their rewards are discontinued.

Future Of Staking

The number of users seeking to contribute their assets to participate in blockchain management and decision-making grows. It means staking becomes popular. To meet the demand, the entry process is becoming more user-friendly. Accordingly, more people will be taking an active part in the development of their blockchain ecosystems.

Conclusion

In conclusion, staking is an innovative investment tool. It can compete with traditional ones in terms of stability. In terms of assets growth potential, it’s superior to them.

P.S. Hope you found this article interesting and useful. If you want to read more articles on crypto, finance, and blockchain check out our blog.
submitted by EX-SCUDO to CryptoMarkets [link] [comments]

What Is Staking: The Ultimate Beginner’s Guide

What Is Staking: The Ultimate Beginner’s Guide
Staking means you are holding your cryptocurrency funds in a wallet and thus support the functionality of a blockchain system. Stakeholders lock their cryptos in their wallets. In return, they are rewarded by the network.

Proof-of-Stake versus Proof-of-Work.

What Is Proof Of Stake

To clear up the idea of staking, we should explain the Proof-of-Stake (PoS) consensus mechanism. PoS and its versions are widely used in many blockchain networks.
The pioneers of PoS were (most likely) Sunny King and Scott Nadal. They were the first to describe and implement this idea for the crypto project Peercoin (PPC). Originally, its blockchain was using a hybrid of PoW and PoS. It made the network less dependent on the alternative protocol and attracted more participants. They were miners who came to compete for a reward.


Delegated Proof-of-Stake in BitShares versus Proof-of-Work in Bitcoin.

Delegated Proof Of Stake

Two years later, Daniel Larimer, a prominent software developer, and crypto entrepreneur introduced a modified version of PoS. Its name was Delegated Proof of Stake (DPoS). The first network to apply it was Bitshares. Larimer also launched EOS and Steem. Both projects adopted the Delegated Proof of Stake protocol for their blockchains.
What is the key feature of DPoS? This mechanism allows all network users to ‘convert’ their crypto holdings into votes. These votes are used to elect trusted witnesses (‘delegates’). They will manage the blockchain on your behalf. The delegates validate the transactions and make sure the network functions as it should. The weight of your vote depends on how big your stake is. As a stakeholder, you get a regular reward for keeping your crypto in the network.

DPoS Pros

The DPoS model addresses the important problems of PoS and PoW blockchains. First of all, it’s the scalability issue. DPoS improves network capacity by increasing the speed of transaction processing. It is possible because the DPoS model allows reaching consensus much faster, as it needs fewer nodes to validate a transaction. On the dark side, Delegate Proof of Stake usage promotes centralization: a DPoS network relies on a limited group of delegates for its operation.

How Staking Works

As we said earlier, staking means holding cryptocurrency or tokens to support a network operation and getting a reward for it. Naturally, this process is typical for blockchains using the PoS protocol or any of its versions.
Unlike PoW, this protocol does not rely on miners who validate blocks by doing ‘work’. This work consists of solving math puzzles using increasingly powerful mining hardware. Instead, the mining power of any network participant depends on how many coins they commit to stake. It allows a PoS-based blockchain to avoid usage of ASICs and other equipment that consumes a great amount of electricity.

Advantages Of Staking

The bigger is the amount you stake, the better are your chances to become the validator for the next block and grab the reward. The PoS model saves you a lot of money. You don’t have to invest in expensive mining hardware and cooling equipment. Also, you don’t have to pay huge electricity bills every month. You still spend some money, but it’s a direct cryptocurrency investment. Every PoS network features its own ‘staking currency’.
The increased scalability, ensured by staking, is one of the main reasons why the Ethereum plans to move to this model in 2020 when it adopts the Casper protocol.
There are networks that prefer DPoS. In this model, you may use other network participants to signal your support for some event. It means you delegate decision making to the nodes you trust.
In fact, these delegates are responsible for handling the blockchain, as they deal with the issues of major importance. They play a key role in consensus achievement and make management decisions.

Consensus protocols compared: PoW, PoS and DPoS.

Network Inflation

There are blockchains who pay a staking reward in the form of a fixed percentage, the so-called ‘inflation rate’. The purpose is to persuade more people to stake their coins. It’s like a bank encouraging you to keep your money with them and not at home.
Until recently, Stellar was a typical example of such a scheme. Their fixed inflation rate was 1%. Every week, the network used to distribute ‘inflation money’ among the holders, who kept their funds in the staking pool. The main pro of this model is that you get a fixed bonus regularly.
For example, a Stellar user who was holding 10,000 XLM for 1 year, could expect the reward of 100 XLM. This information was open to all the users, helping them to decide in favor of staking. It motivated the people who preferred a moderate but predictable reward to a big but random one.
In the 4th quarter of 2019, Stellar abandoned the inflation scheme.

Staking Pool

An idea behind staking pools is simple. To form a pool, many network stakeholders combine together. It increases their collective odds of validating a new block and getting rewarded for it. Like in a PoW mining pool, the reward is proportionately split among all the participants. The money you put in, the bigger is your share.
Pooling might be the best staking solution if your network has a high entry barrier. In practice, it means that you have to contribute a large amount of money to enter, but you cannot afford it alone. Note, that running a pool is not free, as there are maintenance and development costs. As a result, you often have to pay a ‘membership fee’ to the pool providers. Normally, it’s a fixed percentage of your reward share.
Besides, pools may offer additional benefits related to withdrawal time, minimum balance, etc. It attracts new participants and results in a greater degree of decentralization of the network.

Cold Staking

Cold staking is when you stake your crypto using a cold (hardware) wallet. Such a wallet has no connection to the Internet. There are networks that let you stake the funds kept in cold storage. The biggest benefit of cold staking is that your funds are 100% safe. For large stakeholders, it’s the top priority. If a stakeholder takes the crypto out of the cold wallet, their rewards are discontinued.

Future Of Staking

The number of users seeking to contribute their assets to participate in blockchain management and decision-making grows. It means staking becomes popular. To meet the demand, the entry process is becoming more user-friendly. Accordingly, more people will be taking an active part in the development of their blockchain ecosystems.

Conclusion

In conclusion, staking is an innovative investment tool. It can compete with traditional ones in terms of stability. In terms of assets growth potential, it’s superior to them.
P.S. Hope you found this article interesting and useful. If you want to read more articles on crypto, finance, and blockchain check out our blog.
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Instant Crypto Exchange Flyp.me Adds USD Coin (USDC) Stablecoin Cryptocurrency

We've done it again and added another major addition to our already stacked digital asset offerings! USD Coin (USDC), a Coinbase-developed stablecoin with big backing from some of the crypto world’s biggest names, is now tradable on Flyp.me.
This addition gives Flyp.me users a major leg up in the ever-important quest for digital asset liquidity and mobility. Want to send your stablecoin balance between Flyp.me and Coinbase? No problem! How about sending USDC to Binance through Flyp.me? Easy.
Best of all, Flyp.me does not require an account to trade USDC. The process for grabbing some USDC with Flyp.me couldn’t be easier.
At no point do you enter your private keys, or give any information other than your public wallet address. So, what makes the USDC stablecoin special compared to other stable cryptocurrencies out there like Tether (USDT)? Here is a quick overview of USDC stablecoin and why this one is truly a game-changer for current and future Flyp.me traders.
USDC — Not Your Average Stablecoin
Of all the brand names in the cryptocurrency industry, few are as well known — or completely trusted — as Coinbase is. Yes, Coinbase is one of Flyp.me’s direct competitors, but you know what? Credit goes where credit is due.
Coinbase partnered with Circle to bring about USD Coin, 1:1 USD-backed cryptocurrency that stays true to its $1 = 1 USDC value. How does that work? Essentially, Coinbase keeps $1 in the bank for every 1 USDC in circulation, tying each coin to real — not imaginary or inflated — financial value.
Sure, there are other stablecoins out there, but few of them are audited, and even fewer come with the guarantee that only a big name like Coinbase can provide. USDC provides some welcome relief by being, well, stable.
USDC Stablecoin Is Powered by Ethereum
Another major plus USDC has going is it’s powered by Ethereum, our favorite decentralized ledger for all things DeFi (decentralized finance). As the undisputed hub of the emerging DeFi economy, Ethereum has nearly $1 billion in value locked into the blockchain.
Being Ethereum-based makes the ERC-20 standard USDC coin easily transferable between you and other crypto users, or from your wallet to exchanges. This ease of transfer is especially handy when you need to make a move quickly — unlike the Bitcoin blockchain, Ethereum tends to be quicker.
If you’re ready to trade some USDC cryptocurrency without the hassle of creating an account, then head over to Flyp.me and get started now!
About Flyp.me
Flyp.me is the professional tool for instant crypto trading. There is no registration necessary and no hidden analytics tracking you. Moreover, Flyp.me does not control users' funds, so your private keys are not at risk of being held on third-party services.
Flyp.me currently supports over 30 cryptocurrencies and is continuing to add more: Bitcoin, Ethereum, Zcash, Augur, Litecoin, Syscoin, Pivx, Blackcoin, Dash, Decred, Dogecoin, Flyp.me Token, Gamecredits, Peercoin, Aidcoin, 0x, Vertcoin, Basic Attention Token, BLOCKv, Groestlcoin, Essentia, DAI, DGD, Power Ledger, Enjincoin, TrueUSD, Cardano, Storj, Monero, Maker, TetherUS, DigiByte, and now USD Coin.
Connect with the community on Telegram, Twitter, and Facebook.
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ReddCoin And PeerCoin are now available on B-One Payment App!

ReddCoin And PeerCoin are now available on B-One Payment App!
You can use B-One Payment App now to manage your ReddCoin & Peercoin, and do payment using Reddcoin and Peercoin.

https://preview.redd.it/k37mrt77dcn41.jpg?width=360&format=pjpg&auto=webp&s=bfb6e74e48400e21f3f209a0a9d96b9f7b61713a

https://preview.redd.it/pqowezo8dcn41.jpg?width=360&format=pjpg&auto=webp&s=8b0e9f20cb13e264cf1058e06c6eb80dfdc30776
B-One Payment utility token IEO is live now!
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submitted by deanwenchester8 to CryptoAirdropIco [link] [comments]

ReddCoin And PeerCoin are now available on B-One Payment App!

ReddCoin And PeerCoin are now available on B-One Payment App!
You can use B-One Payment App now to manage your ReddCoin & Peercoin, and do payment using Reddcoin and Peercoin.
https://preview.redd.it/8bu55hpv4cn41.jpg?width=360&format=pjpg&auto=webp&s=f8dbc14430b50a37116949359d8b6f8f7872e6e0

https://preview.redd.it/vc2823ix4cn41.jpg?width=360&format=pjpg&auto=webp&s=235a05042e875158ad9c0de8019c26e20b221851
B-One Payment utility token IEO is live now!
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submitted by deanwenchester8 to u/deanwenchester8 [link] [comments]

A Path to Cold Minting, a Way for Proof of Stake Blocks to be Securely Minted Offline from Cold Storage, Drastically Expanding the Number & Participation of Minters & Increasing Network Security

A Path to Cold Minting, a Way for Proof of Stake Blocks to be Securely Minted Offline from Cold Storage, Drastically Expanding the Number & Participation of Minters & Increasing Network Security submitted by Sentinelrv to CryptoCurrency [link] [comments]

Exchange 30+ cryptocurrencies to DigiByte at Flyp.me. Instant and accountless exchange.

We are thrilled to announce that another great coin will be listed in the Flyp.me Accountless Exchange! Starting today, DigiByte (DGB) is instantly available on Flyp.me.
Everyone can now flyp 30 different cryptocurrencies to DGB, head to Flyp.me. You don’t need any registration, email, nor account. Just one click to exchange seamlessly and instantly while always being in control of your privacy and private keys.
Thanks to the Digibyte team launching the DigiByte blockchain, an open-protocol with a focus on cybersecurity, digiassets, payments, and secure communications technologies was formed. Since 2014, many other blockchains like Ethereum, Zcash & Dogecoin have adopted DigiByte technology such as DigiShield.
We are extremely happy to allow everyone to instantly access DGB using their preferred wallet, while maintaining control of their private keys.
We are very pleased to bring you instant access to DigiByte. Since 2017, Flyp.me accountless exchanger has been focusing on privacy, simplicity and speed.
Welcome to accountless trading, DigiByte Community!
About DigiByte
Developed in 2013, the DigiByte blockchain was released in January 2014 by Jared Tate. Although based on Bitcoin, adjustments in the code allow for 15-second block times, real-time difficulty adjustment and DigiAssets.
With DigiAssets you can build on top of DigiByte, because it is a scalable secondary layer on top of the global DigiByte blockchain that allows for the decentralized issuance of assets, tokens, smart contracts, digital identity and much more. DigiByte have had 285,000+ full node downloads since 2017.
About Flyp.me
Flyp.me is the professional tool for instant crypto trading. There is no registration necessary and no hidden analytics tracking you. Moreover, Flyp.me does not control users' funds, so your private keys are not at risk of being held on third-party services.
Flyp.me currently supports over 30 cryptocurrencies and is continuing to add more: Bitcoin, Ethereum, Zcash, Augur, Litecoin, Syscoin, Pivx, Blackcoin, Dash, Decred, Dogecoin, Flyp.me Token, Gamecredits, Peercoin, Aidcoin, 0x, Vertcoin, Basic Attention Token, BLOCKv, Groestlcoin, Essentia, DAI, DGD, Power Ledger, Enjincoin, TrueUSD, Cardano, Storj, Monero, Maker, TetherUS and now DigiByte.
Connect with the community on Telegram, Twitter and Facebook.
submitted by flypme to flypme [link] [comments]

▶ Why PPCoin not Bitcoin The maths behind bitcoin Peercoin vs Bitcoin Bitcoin Litecoin Peercoin Dogecoin . Ücretsiz Bitcoin , Litecoin, Dogecoin ,Dashcoin, Peercoin ,Primecoin , Ethereum

Stakeholders of Peercoin co-own the blockchain and collectively decide its future through protocol voting. Voting is carried out the same way Peercoin is secured, through a process called proof-of-stake minting. Stakeholders participate in minting simply by installing the version of Peercoin they support, loading their wallet with PPC, and holding them while they are occasionally selected by ... Die Peercoin Kryptowährung will ganz ähnlich wie Bitcoin ein dezentrales, digitales Zahlungsmittel sein. Im Fokus der Entwicklung stehen anonyme Transaktionen über ein dezentrales Netzwerk, die Blockchain. Nicht verwunderlich, dass die PPCoin auf der Blockchain von Bitcoin aufbaut. Jedoch erkannten die Entwickler schon früh einige Probleme bei Bitcoin, die sich mittlerweile bewahrheitet ... Buying crypto like Bitcoin and Ether is as easy as verifying your identity, adding a payment and clicking "Buy". Sign up for our Wallet today. Create Wallet. Trade Crypto at the Exchange. Integrated with the Blockchain Wallet, our Exchange is a one-stop shop where you can deposit funds and place trades seamlessly in minutes. Get Started. Dive Deeper. Buy Crypto . Bitcoin $ USD. Your Email ... Peercoin (PPC): Das bietet die effiziente Alternative zum Bitcoin! Von Max L. Die Cryptowährung Peercoin wurde bereits im August 2012 ins Leben gerufen und basiert auf dem Quellcode des Bitcoin. Unlike Bitcoin, Namecoin, and Litecoin, Peercoin does not have a hard limit on the number of possible coins, but is designed to eventually attain an annual inflation rate of 1%.There is a deflationary aspect to Peercoin as the transaction fee of 0.01 PPC/kb paid to the network is destroyed. This feature, along with increased energy efficiency, aim to allow for greater long-term scalability.

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▶ Why PPCoin not Bitcoin

The mathematics of bitcoin and blockchain explained in an easy way: the key to cryptocurrencies. Reference: Nakamoto, S., "Bitcoin: A Peer-to-Peer Electronic... Why Peercoin is better Exchange! Bitcoin (BTC) Dogecoin (DOGE) Litecoin (LTC) Ethereum (ETH) Peercoin (PPC) Exchange Buy and sell on HashCoins Exchange! https://goo.gl/q3zyoO ... But going off blockchain does not solve the problem from a security standpoint in the long run. If you only use it for large, rare, important transfers, how will you be able to pay the miners ... 👉 https://goo.gl/7iNRaR - регистрация на бирже, 👉 https://goo.gl/u1RQ6k - наш телеграм с новостями и сигналами ... This video is unavailable. Watch Queue Queue. Watch Queue Queue

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