Peer-to-Peer versus Regular Bitcoin Exchanges - dummies

Peercoin vs Bitcoins (PPCBTC)

I recently concluded a brief analysis of Peercoin. Ok, so my thinking goes like this. When Bitcoin miners reward goes to zero, the fees will have to pay for the work being done. Basically we then got a situation where the fees have to pay for the energy. Energy efficient miners could then out compete less energy efficient miners, resulting in mining consolidation which increases the threat of centralization. However, Bitcoins transactions will also compete with Peercoins transactions which actually could be cheaper because of the Proof-Of-Stake (the forced 0.01 fee would of course probably have to be changed). Now this could be total bullshit analysis, but this is the kind of ideas you get when you read about Peercoin and if you do, you see the value and even more important, the potential hype could be very good for price action. Also, since Peercoins are competing with Litecoin and Litecoin is even less energy effiecient then Bitcoins and besides from that being basically the same I think there is a good chance for Peercoins overtaking Litecoins sometime in the future. Of course this is a trade that I dont want to miss. I hold a few thousand Litecoins which I will not be selling, but I sold Bitcoins for Peercoins and have a few thousands of them now.
I suspect we could see a -20% correction light really really soon and the upside risk is like 14% so actually I am thinking about selling some coins to be able to buy back cheaper. Havent decided yet. However, I dont expect any really major things to happen before February (note: Im much better at calling price levels then putting dates on stuff).
Okay, here is my chart analysis for Peercoins:http://imgur.com/c4hEU0o
submitted by naked50 to subnaked50 [link] [comments]

Peercoin vs Bitcoin

Peercoin vs Bitcoin submitted by _CapR_ to CryptoMarkets [link] [comments]

Peercoin vs Bitcoin - A comparison

Peercoin vs Bitcoin - A comparison submitted by K210 to peercoin [link] [comments]

Peercoin vs bitcoin - a comparison

Peercoin vs bitcoin - a comparison submitted by K210 to peercoin [link] [comments]

Peercoin vs bitcoin - A comparison

Peercoin vs bitcoin - A comparison submitted by K210 to peercoin [link] [comments]

Peercoin vs Bitcoin - A comparison

Peercoin vs Bitcoin - A comparison submitted by K210 to CryptoCurrency [link] [comments]

[140731] ~$1!!! What the h3ll is happening?

What the h3ll is happening?
Kind of what I suspected would be happening: http://www.reddit.com/PeercoinMarkets/comments/2blh0y/140606_broken_support_analysis/
What about peercoins vs other coins?
Peercoins come in at fifth place on coinmarketcap. It's a well known fact that both Ripple and NXT have huge "bag holders", which means that a few people are withholding a whole lot of supply from circulating which skews the metrics somewhat. Looking at the exchange rate of PPCUSD, one would have guessed that peercoins were going down the drain, but compared to other crypto currencies actually that much haven't changed.
Peercoins vs bitcoins?
It's fairly obvious that people prefer to hold bitcoins over all other crypto currencies. This is also true for PPCBTC, which have been trending down since December. Before then peercoins was gaining on bitcoins. This uptick in PPCBTC coincided with bitcoins first exploding on the upside and then crashing. Why? I think it works like this. 1) People buy BTCUSD and make an insane amount of money. 2) Eager to repeat the "smart investment" they sell some of their BTC to buy the next big AltCoin. Checking sites such as coinmarketcap gives a hint of which the next big coin is going to be. 3) They buy XXXcoin. 4) Price of XXXCoin goes up which creates a gold rush, euphoria and pump-n-dumpers of course latch on to this to make a quick buck.
What happens next?
I think its very likely that people will sell whatever they have to buy bitcoins, when price starts to break out on the upside. Then I suspect to see the same thing happens as happened last time; people making truckloads of money will diversify into other crypto currencies. Peercoin being the first PoS coin, high ranked in coinmarketcap and a lot of happening (peer4commit, Peershares, NuBits, etc) I think will get its fair share of the next gold rush. I suspect it will go up because of speculative money rushing into the currency.
Future of Peercoin
Peercoin was created to improve on some of the properties of Bitcoin. While these improvements are great for the long term value of peercoins, I suspect it will only be used as one of the arguments for the next goldrush into peercoins and not the actual reason. I should probably elaborate more on this, but I'll save that for another post. The point here was only to share my view that the fundamentals have probably little to do with the price of peercoins right now. I think it's only price speculation that is driving price up and down.
submitted by peerpillow to PeercoinMarkets [link] [comments]

Bitcoin vs. Peercoin [Extended Edition]

Bitcoin vs. Peercoin [Extended Edition] submitted by conjukt to Crypto_ico [link] [comments]

Bitcoin vs. Peercoin Security Meme

Bitcoin vs. Peercoin Security Meme submitted by Sentinelrv to peercoin [link] [comments]

Bitcoin's efficiency vs. Peercoin's efficiency

Hey there,
I have a couple questions regarding Bitcoin's and Peercoin's efficiency.
1) How much more efficient will bitcoin mining be with the ASIC mining gear being released for Bitcoin mining specifically and how will that compare with Peercoin's hybrid system so far.
I read that the difficulty for bitcoin mining increases every 2016 blocks which is about 2 weeks
2) Is it possible to integrate POS into the bitcoin protocol (or something similar to it) ?
submitted by JetJet13 to peercoin [link] [comments]

Bitcoin vs Mintcoin - [text video] (I put this little video together for Mintcoin. I hope you like it; it is similar to one I made for Peercoin last year)

Bitcoin vs Mintcoin - [text video] (I put this little video together for Mintcoin. I hope you like it; it is similar to one I made for Peercoin last year) submitted by petabytehasher to MintCoin [link] [comments]

Peercoin: possible scenarios (vs Bitcoin)

Peercoin: possible scenarios (vs Bitcoin) submitted by crypto_coiner to peercoin [link] [comments]

Bitcoin vs. Peercoin WARNING: Beware of Bitcoin! Why Bitcoin will "eventually" crash... the reason why PPCoin or (Peercoin) was created.

Bitcoin vs. Peercoin WARNING: Beware of Bitcoin! Why Bitcoin will submitted by bitcoinbeware to Bitcoin [link] [comments]

Logarithmic chart of Peercoin - how does it fare vs Litecoin/Bitcoin ?

Logarithmic chart of Peercoin - how does it fare vs Litecoin/Bitcoin ? submitted by crypto_coiner to peercoin [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]

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.
submitted by EX-SCUDO to ethtrader [link] [comments]

Staking — The New Way to Earn Crypto for Free

Staking — The New Way to Earn Crypto for Free

https://preview.redd.it/jpadsinyz3c41.png?width=616&format=png&auto=webp&s=c0dc410484430b863b0488727f92135f218edff2
Airdrops are so 2017, free money was fun while it lasted but now when someone says free money in crypto, the first thoughts are scams and ponzi schemes. But in 2020, there is a way to earn free money, in a legitimate, common practice, and logical manner — staking.
Staking is the core concept behind the Proof-of-Stake (PoS) consensus protocol that is quickly becoming an industry standard throughout blockchain projects. PoS allows blockchains to scale effectively without compromising on security and resource efficiency. Projects that incorporate staking include aelf, Dash, EOS, Cosmos, Cardano, Dfinity and many others.

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PoW — Why change

First, let’s look at some of the issues facing Proof-of-Work (PoW) consensus that led to the development of PoS.
  1. Excessive energy consumption — In 2017, many concerns were raised over the amount of electricity used by the bitcoin network (Largest PoW blockchain). Since then the energy consumption has increased by over 400%, to the point where 1 single transaction on this network has the same carbon footprint of 736,722 Visa transactions or consumes the same amount of electricity as over 20 U.S. households.
  2. Varying Electricity Costs — The profit of any miner on the network is tied to two costs, the initial startup cost to obtain the hardware and infrastructure, and more critically, the running cost of said equipment in relation to electricity usage. Electricity costs can vary from fractions of a cent per kWh to over 50 cents (USD) and in some cases it is free. When a user may only be earning $0.40 USD per hour then this will clearly rule out certain demographics based purely on electricity costs, reducing the potential for complete decentralization.
  3. Reduced decentralization — Due to the high cost of the mining equipment, those with large financial bases setup mining farms, either for others to rent out individual miners or entirely for personal gains. This results in large demographic hotspots on the network reducing the decentralized aspect to a point where it no longer accomplishes this aspect.
  4. Conflicted interests — The requirements of running miners on the network are purely based on having possession of the hardware, electricity and internet connection. There are no limits to the amount a miner can earn, nor do they need to hold any stake in the network, and thus there is very little incentive for them to vote on upgrades that may benefit the network but reduce their rewards.
I want to take this moment to mention a potential benefit to PoW that I have not seen anyone mention previously. It is a very loose argument so don’t take this to heart too strongly.
Consistent Fiat Injection — The majority of miners will be paying for their electricity in fiat currency. At a conservative rate of $0.1 USD per kWh, the network currently uses 73.12 TWh per year. This equates to an average daily cost of over $20 million USD. This means every day around $20 million of fiat currency is effectively being injected into the bitcoin network. Although this concept is somewhat flawed in the sense that the same amount of bitcoin will be released each day regardless of how much is spent on electricity, I’m looking at this from the eyes of the miners, they are reducing their fiat bags and increasing their bitcoin bags. This change of bags is the essence of this point which will inevitably encourage crypto spending. If the bitcoin bags were increased but fiat bags did not decrease, then there would be less incentive to spend the bitcoin, as would see in a staking ecosystem.

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PoS Variations

Different approaches have been taken to tackle different issues the PoS protocol faces. Will Little has an excellent article explaining this and more in PoS, but let me take an excerpt from his piece to go through them:
  • Coin-age selection — Blockchains like Peercoin (the first PoS chain), start out with PoW to distribute the coins, use coin age to help prevent monopolization and 51% attacks (by setting a time range when the probability of being selected as a node is greatest), and implement checkpoints initially to prevent NoS problems.
  • Randomized block selection — Chains like NXT and Blackcoin also use checkpoints, but believe that coin-age discourages staking. After an initial distribution period (either via PoW or otherwise), these chains use algorithms to randomly select nodes that can create blocks.
  • Ethereum’s Casper protocol(s) — Being already widely distributed, Ethereum doesn’t have to worry about the initial distribution problem when/if it switches to PoS. Casper takes a more Byzantine Fault Tolerant (BFT) approach and will punish nodes by taking away (“slashing”) their stake if they do devious things. In addition, consensus is formed by a multi-round process where every randomly assigned node votes for a specific block during a round.
  • Delegated Proof-of-Stake (DPoS) — Invented by Dan Larimer and first used in Bitshares (and then in [aelf,] Steem, EOS, and many others), DPoS tackles potential PoS problems by having the community “elect” delegates that will run nodes to create and validate blocks. Bad behavior is then punished by the community simply out-voting the delegated nodes.
  • Delegated Byzantine Fault Tolerance (DBFT) — Similar to DPoS, the NEO community votes for (delegates) nodes, but instead of each node producing blocks and agreeing on consensus, only 2 out of 3 nodes need to agree on what goes in every block (acting more like bookkeepers than validators).
  • Tendermint — As a more sophisticated form of DBFT and a precursor to Casper, Jae Kwon introduced tendermint in 2014, which leverages dynamic validator sets, rotating leader elections, and voting power (i.e. weight) that is proportional to the self-funding and community allocation of tokens to a node (i.e. a “validator”).
  • Masternodes — First introduced by DASH, a masternode PoS system requires nodes to stake a minimum threshold of coins in order to qualify as a node. Often this comes with requirements to provide “service” to a network in the form of governance, special payment protocols, etc…
  • Proof of Importance (POI)NEM takes a slightly different approach by granting an “importance calculation” to masternodes staking at least 10,000 XEM. This POI system then rewards active nodes that act in a positive way over time to impact the community.
  • “Proof-of-X” — And finally, there is no lack of activity in the PoS world to come up with clever approaches and variants of staking (some are more elaborate than others). In addition to BFT protocols such as Honeybadger, Ouroboros, and Tezos, for further reading, also check out “Proof-of-”: Stake Anonymous, Storage, Stake Time, Stake Velocity, Activity, Burn, and Capacity.
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Earning Your Stake

In order to understand how one can earn money from these networks, I’ll break them down into 3 categories: Simple staking, Running nodes, and Voting.
Simple Staking - This is the simplest of the 3 methods and requires almost no action by the user. Certain networks will reward users by simply holding tokens in a specified wallet. These rewards are generally minimal but are the easiest way to earn.
Running a node - This method provides the greatest rewards but also requires the greatest action by the user and most likely will require ongoing maintenance. Generally speaking, networks will require nodes to stake a certain amount of tokens often amounting to thousands of dollars. In DPoS systems, these nodes must be voted in by other users on the network and must continue to provide confidence to their supporters. Some companies will setup nodes and allow users to participate by contributing to the minimum staking amount, with a similar concept to PoW mining pools.
Voting - This mechanism works hand in hand with running nodes in relation to DPoS networks. Users are encouraged to vote for their preferred nodes by staking tokens as votes. Each vote will unlock a small amount of rewards for each voter, the nodes are normally the ones to provide these rewards as a portion of their own reward for running a node.

Aelf’s DPoS system

The aelf consensus protocol utilizes a form of DPoS. There are two versions of nodes on the network, active nodes & backup nodes (official names yet to be announced). Active nodes run the network and produce the blocks, while the backup nodes complete minor tasks and are on standby should any active nodes go offline or act maliciously. These nodes are selected based upon their number of votes received. Initially the top 17 nodes will be selected as active nodes, while the next 100 will stand as the backup ones, each voting period each node may change position should they receive more or less votes than the previous period. In order to be considered as a node, one must stake a minimum amount of ELF tokens (yet to be announced).

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In order to participate as a voter, there is no minimum amount of tokens to be staked. When one stakes, their tokens will be locked for a designated amount of time, selected by the voter from the preset periods. If users pull their tokens out before this locked period has expired no rewards are received, but if they leave them locked for the entire time frame they will receive the set reward, and the tokens will be automatically rolled over into the next locked period. As a result, should a voter decide, once their votes are cast, they can continue to receive rewards without any further action needed.
Many projects have tackled with node rewards in order to make them fair, well incentivized but sustainable for everyone involved. Aelf has come up with a reward structure based on multiple variables with a basic income guaranteed for every node. Variables may include the number of re-elections, number of votes received, or other elements.
As the system matures, the number of active nodes will be increased, resulting in a more diverse and secure network.
Staking as a solution is a win-win-win for network creators, users and investors. It is a much more resource efficient and scalable protocol to secure blockchain networks while reducing the entry point for users to earn from the system.
submitted by Floris-Jan to aelfofficial [link] [comments]

Isn't it time to get real

I have been an investor in Bitcoin for since 2012. I owned a lot. The operative word is "owned". I have since sold all of my Bitcoin in favor of Ether.
Many years ago (before the internet was where it is today) I had a group of seniors come to me to help them collect on some money from a foreign entity. It turns out they were all scammed in the old version of "you have inherited... emails"
These poor people could not let go of the fact that their belief/dreams of being rich were based upon a scam, and in fact when I told them that they fired me. Many years later I met one of them and he told me that in 2015 they gave up trying to collect and gave up trying to get their money back.
I tell you that because I see many similarities in the Bitcoin community. I am not at all saying that Bitcoin is a scam, its not. I am however saying that people can't let go of their dream that Bitcoin will become the world currency and consumers will start using it.
Bitcoin has not succeeded. Ask yourself who is actually using Bitcoin? Are you using it to purchase anything? Now ask if your friends or relatives are using Bitcoin? I think most of us will answer no. You see Bitcoin does not offer anything of value to consumers. Its difficult to buy, and its useful in very few places. When it is useful, its no more useful than using a credit card which carries consumer protections that Bitcoin does not.
One of the reasons that Bitcoin is even sustaining its price right now is because it is the main way in which people are buying Ether. Once more exchanges add Ether to fiat pairing, Bitcoins days are numbered. It gives me no satisfaction to write that, but nevertheless I believe its the truth. The only use Bitcoin has right now and in the future is as a store of wealth. Its utility is virtually nonexistent. Currency needs to be valuable for reasons other than its a currency. That is why Ether will take over for Bitcoin. Ether will have a purpose other than a store of value. It will be used for gas, and staking.
My bet is that within 90 days of larger exchanges adding ethefiat pairs directly, Bitcoin will drop below $250 and from there will decline in a slow death spiral. All the attacks on my post, and ether in general, won't stop that from occurring.
Also, I read somewhere that there has been a tremendous movement of Bitcoin to Poloniex and Kraken. If that is true mand I am trying to verify it, why those two exchanges? Answer: they both offer Ether Bitcoin pairing.
submitted by JKB1001 to ethtrader [link] [comments]

Trending Subreddits for 2017-12-24: /r/CryptoCurrency, /r/YouShouldKnow, /r/ExpectationVsReality, /r/wholesomememes, /r/badwomensanatomy

What's this? We've started displaying a small selection of trending subreddits on the front page. Trending subreddits are determined based on a variety of activity indicators (which are also limited to safe for work communities for now). Subreddits can choose to opt-out from consideration in their subreddit settings.
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/CryptoCurrency

A community for 4 years, 311,391 subscribers.
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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Comparison pictures and memes.

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Welcome to the wholesome side of the internet! This community is for those searching for a way to capture virtue on the internet.

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A community for 3 years, 76,518 subscribers.
Women are made of sugar and spice and all things nice. Except their vaginas which are sqwicky and attract bears.
submitted by reddit to trendingsubreddits [link] [comments]

Crypto markets 5 years ago vs today. Anyone remember Terracoin? Down 99.1% vs Bitcoin. Ouch.

All stats as compared to BTC.
and on and on... more info in this one-minute video I put together. https://youtu.be/AbOWOzPEJrE
Ouch.
submitted by ChronosCrypto to CryptoCurrency [link] [comments]

What is Peercoin? How to buy peercoin ¿Qué es Peercoin? ¿Es una Criptomoneda, Cómo el Bitcoin? Peercoin vs Bitcoin Why PPCoin not Bitcoin

PPC to BTC, Peercoin Price in BTC, PPC vs. BTC, Online exchange rate calculator between PPC (Peercoin) & BTC (Bitcoin). CoinXConverter - Online Currency & Cryptocurrency Converter. Bitcoin is now considered to be the most popular and most expensive cryptocurrency on the market. Bitcoin was launched on 3rd January 2009 by pseudonymous developer Satoshi Nakamoto. On the other hand, Peercoin is fairly newer. It was launched on 12th August 2012 by software developer Sunny King. Peercoin is inspired by Bitcoin, and hence shares much of its source code and Two types of bitcoin exchanges are in use: peer-to-peer and regular. On the one hand, there are the regular bitcoin exchanges, which use an order book to match buy and sell orders between people. However, neither the buyer nor the seller has any idea who the other party is, and this provides all users with […] Bitcoin vs. Litecoin vs. Peercoin vs. Ripple vs. Namecoin Share on be sure to check out Quarkcoin vs. Megacoin vs. Protoshares vs. Worldcoin vs. Feathercoin. Bitcoin – First and Biggest (but Bitcoin vs. Ethereum: An Overview Ether (ETH), the cryptocurrency of the Ethereum network, is arguably the second most popular digital token after bitcoin (BTC). Indeed, as the second-largest

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