Blockchain revolutionized the financial industry for users across the globe by creating another option for people to trade across borders without worrying about any controlling agency. This opened avenues for investment and through further development of the cryptocurrency industry, users can earn money while enjoying themselves through games or lifelike simulations and sometimes even learning new things. The industry seeks constant improvements every day in order to avoid stagnation and attract new customers.
Proof of Work has the latest state of the art algorithm to be introduced. The core value of cryptocurrencies lies in fully permissionless and trustless protocols as well as decentralization. But PoW is not sustainable ecologically and may compromise decentralization mainly due to the large growth rate of first-generation cryptocurrency networks. Proof of Stake is the future of cryptographic platforms and Ethereum will complete the transition from PoW to PoS within the next year. Pool of Stake is the biggest staking pool for PoS holders and can bring users closer together making greater profits.
PoW vs PoS
The major difference between Pos and Pow is in how blocks are mined or forged. Initially, mining required just a single computer and an application but with the growth of the platform, mining has become much more expensive and requires greater computational power. This made better and costlier hardware equipment necessary which proved to be a deterrent for small miners with limited resources. Ultimately this led to the formation of professional and centralized pools of miners or farms. These pools pose a threat to the community of blockchain users ie selfish mining. Another drawback of the PoW model is that the decentralization feature is often compromised due to the current state if the PoW protocols.
PoS, on the other hand, has a fundamentally different structure. There are no miners rather validators who don’t create new coins but validate transactions. Each new block is proposed and voted upon by a randomly chosen group of validators with votes depending on their weights ( the number of coins staked). This provides them with transaction fees instead of mining rewards. Advantages of Pos, as claimed by its users include security, reduced risk of centralization, energy efficiency and greater earnings for smaller miners. The two issues that PoS seeks to solve are the need for validators to be online 24×7 which is not often possible for a home user and that a validator with higher stakes gets unproportionally greater votes. PoS acts as a single node enabling miners to collect together as a pool, creating a unit with collectively greater weight and thus earning more rewards. There are also fewer incentives for harmful actors as some blockchain platforms slash them and they lose their investment. PoS users can stake their coins and can create a passive form of income for themselves.
Step 1: User deposits PoS coins as a stake in the pool and a key token is returned to the user’s wallet via an underlying smart contract. This acknowledges their investment and enables fund withdrawal.
Step 2: The user uses his key to access the Pool of Stake Node and withdraws his reward (transaction) in a certain number of days as specified by the architecture. Rewards are calculated at 23:59:59 CE(S)T. Greater the pool means greater rewards for the pool members.
Step 3: Within the next 24 hours the user’s wallet receives the reward key from the pool.
Step 4: Now the user can use this key via a smart contract to withdraw his stake of PoS coins from the pool. This completes the process of a user implementing PoS.
Burning is the coins being sent to an address never to be accessed or used again. This acts as a deflation mechanism and is established through a Proof of Burn method similar to other blockchain protocols and doesn’t require third-party verification.
The platform is account based and protected with all possible security measures like 2FA. Transparency is paramount to the network and users can track which coin has generated more rewards over different intervals. The smart i.o. database possesses analytics that can be used to show performance. The permissionless distributed and decentralized ledger system of the blockchain makes third parties obsolete. The governance model gives users the freedom to voice their opinions and ensure community loyalty. This helps counter against tyrannical structures that lead to the formation of oligarchies and cartels.
Although it appears to be centralized, Pool of Stake is inherently decentralized and can be seen in its community vote policy where users can vote on which coin should be integrated next. Through co-operation with native blockchains Pool of Stake guarantees that its users can participate in the voting system . Staking in dPoS coins are also being mooted and will see the establishment of a separate delegate to represent the community and tighter regulations.
Security is ensured through both – hardware and software. The PSK token is an ERC-20 standard and the Key token is close to it in code. All smart contracts are open sourced and based on the Qtum blockchain. Since success depends on being online 24×7, a server in Zurich and several virtual servers globally have been plotted. This is to substantially decrease the possibility of DDoS attacks.
Team, Advisors & Partners
The team at Pool of Stake is headed by Co-founders Davide Luigi Borella, Dario Calderoni and Andrea Balzini who also perform the roles of CEO, Head of Operations and CTO respectively. Other members of the team include Marco Querini – Full-stack engineer, and Dalia Hallberg of governance.
The core team is advised by experts like Patrick Lowry, Daniil Morozov, Ian Scarffe, Ciprian Filip, Alexandr Chevtaev and Giacomo Arcaro.
Pool of Stake has partnered with Maveric and is listed on Coinhills, coincodex, ICOAlert, ICObazaar, and foxico among other exchanges.
For More Details of Pool of Stake:
Official Website: https://www.poolofstake.io
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