Best PoS Coins
When Satoshi Nakamoto invented the first cryptocurrency, Bitcoin, he needed to find a way for transactions to be accepted without the involvement of a third party. He also accomplished this by developing the Proof of Work System.Emerging as an alternative to bitcoin’s Proof of Work protocol, proof of Stake is a protocol that takes into account digital asset ownership rather than a system based on computational power.
Presented in a 2012 paper by blockchain developers Sunny King and Scott Nadal, the PoS protocol focuses on eliminating the high energy consumption and some other problems required for Bitcoin mining. The first cryptocurrency to use the PoS protocol is Peercoin. This model provides a fairer and equal mining system, more scalable operations, and relies less on electricity. In this article, we will discuss what is PoS and what are the best PoS coins.
What are Proof-of-Stake (PoS) coins?
One of the types of verifying operations on the network is PoS. This method is not actually even mining because users do not need to make any transactions to generate any new money. Therefore, its name is minting, not mining. So it’s not mining, it’s printing money.
To earn money in this method is to keep money in your electronic wallet. The prize you earn is directly proportional to the amount of koin you keep in your wallet. The more money you have in your wallet, the more rewards you win, which means you generate new money.
Another factor that affects the reward you will receive is the amount of time your coins are in your wallet. In other words, the longer your coins stay in your wallet, the older they will be, and the greater the amount of reward they will receive from a transaction verification.
Each best PoS coins has an initial set annual return. For example, Ohm coin gives the investor 20% in the first year, 15% in the second year, 10% in the third year, and 5% each year in the following years. Investors guarantee a fixed income in this way.
What Are The Best PoS Coins?
Assuming we know a little about this topic, let’s talk about the best PoS coins.
- NEO : NEO is China’s first open-source decentralized crypto and blockchain network. It’s one of the best PoS coins Despite having its own currency named NEO cryptocurrency, it also has a token called GAS or ANC-Altcoins on its branch.
- Tezos (XTZ): When it comes to yearly interest, it can be considered one of the best PoS coins. Tezos is the most recent and well-known blockchain project based on the Tezos blockchain. With a $232 million increase during the ICO, it’s easy to believe that the crypto has some clout.
- DASH: This cryptocurrency recognizes itself as a peer-to-peer decentralized electronic currency and aspires to be as open as actual cash that we use in real life, such as GBP/USD/INR or EUR.
- QTUM: QTUM is a hybrid of both blockchains, taking the best bits of both and creating the best combination of the two in the real world.
- CUTcoin (CUT): CUTcoin is a huge project, but the easiest way to explain it is as digital cash.
- Cosmos (ATOM): Cosmos (ATOM) regards itself as the most personalized, decentralized, powerful, and interoperable blockchain platform.
- PIVX: PIVX is a cryptocurrency that focuses on protection and privacy during transactions.
- Lisk(LSK): Anyone can use a blockchain-based LISK platform to build decentralized apps (DApps) on their network. It enables developers, investors, and project designers to build side chains.
- Stellar (XLM): Stellar is a shared network that allows people to move assets globally in an affordable, fast, and comfortable manner.
- Ontology (ONT/ONG): Ontology is a blockchain network designed to help other blockchain networks, both public and private, such that companies may benefit from technological advances.
Proof of Stake and stake opens new spaces for anyone who wants to participate in the reconciliation and management of blockchains. Moreover, staking is a very simple way in which it is enough to simply hold coins to generate passive income. As staking becomes easier and easier, the entry barrier for the blockchain ecosystem is falling. However, knowing the best PoS coins on the market will benefit you.
But it should be noted that staking can also involve risks. PoS models have not been subjected to the same degree of combat testing as PoW models. Also there are concerns about the long-term safety and applicability of various PoS designs. Interestingly, although Ethereum will switch to POS in the coming years. But none of the top 3 cryptocurrencies (Bitcoin, Ethereum and XRP) currently use PoS.
As existing best PoS coins gain value and importance, security models will come under increasing pressure-only time will tell if PoS will eventually become the standard for cryptocurrencies. Locking funds in a smart contract carries risks to software vulnerabilities. For this reason, you should always do your own research and use high-quality wallets such as Trust Wallet.