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Proof of Work Vs Proof of Stake ~ SwissCoin Blockchain

Proof of Work and Proof of Stake maybe tough technical terms to understand. As Crytocurrency investors, we may not have need to worry about understanding the details. However, some basic knowledge is a requirement so we are not to be completely lost.

There are hundreds of electronic currencies today running on blockchains and the algorithms used to generate these digital coins is a huge factor that contributes to the efficiency of the currency.

Generally, both PoW and PoS are efficient in getting end results (the coins) but there is a huge difference in the process that touches on cost effectiveness.

SwissCoin Blockchain  – Proof of Work Vs Proof of Stake

Proof of Work Vs Proof of Stake

Src: blockgeeks.com

SWISSCOIN will be runned as a full PoS system, the question is, What is PoS (proof of stake)

Proof-of-stake (PoS) is an algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus (A situation where the different computers making up the network come to an agreement on the status of a transaction)

Proof of stake first idea was suggested on the bitcointalk forum back in 2011, but the first digital currency to use this method was Peercoin in 2012, together with ShadowCash, Nxt, BlackCoin, NuShares/NuBits, Qora and Nav Coin… blockgeeks.com

Unlike Proof-of-Work (PoW) based cryptocurrencies (such as bitcoin), where the algorithm rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining), in PoS-based cryptocurrencies the creator of the next block is chosen in a deterministic (pseudo-random) way, and the chance that an account is chosen depends on its wealth (i.e. the stake).

In PoS cryptocurrencies the blocks are usually said to be forged (in the blacksmith sense of this word), or minted, rather than mined. Also, usually all the coins are created in the beginning and the total number of coins never changes afterwards. Therefore, in the basic version of PoS there are no block rewards (e.g. as in bitcoin); so, the forges (miners/stakers) take only the transaction fees.

Many cryptocurrencies are now exploring PoS, for example we see Ethereum planning a hard fork transition from PoW to PoS consensus as they all see it as a more beneficial system then PoW for future use.

What we see from SWISSCOIN and their unique blockchain is a hybrid PoW / PoS system, top of the art. The SWISSCOIN blockchain will be completely decentralized and used as a value transfer instrument worldwide with its fast, borderless transactions with minimum cost.

Proof of Work relies on energy use. According to a bitcoin mining-farm operator, energy consumption totaled 240kWh per bitcoin in 2014 (the equivalent of 16 gallons of gasoline). In a recent research, experts argued that bitcoin transactions may consume as much electricity as Denmark by 2020. Moreover, these energy costs are almost always paid in non-cryptocurrency (fiat currency), introducing constant downward pressure on the price.

Proof of Stake currencies can be several thousand times more cost effective and will without a doubt be the future preferred blockchain system to use due to its fast handling, low cost and eco-friendly approach.

SWISSCOIN is the future of payment and transaction systems, get informed, get educated, get an advantage.

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Click Here to Leave a Comment Below 15 comments
Taufeeq Umar - April 24, 2017

Its really amazing blog with very much helpful information, thank you so much for writing this great blog here for us.

Reply
Riya Khurana - April 21, 2017

wow another interesting one.
I am new to this cryptocurrency thing and thanks for giving me so much in depth technical detail about cryptocurrency SwissCoin, and a motivation to know more about it.

love to hear more from you.
cheers!

Reply
Ronald Segura - April 21, 2017

The more I read about these cryptocurrencies, the more they become very interesting to me. I am one who is always looking for ways to leverage passive income and this one sound more and more promising every day. Being able to completely understand these type of things can be the huge difference between being successful and just being one more in the group.

Thanks a lot for sharing!
Ronald Segura recently posted…5 Reasons Why You Should Start an Online Business in 2017My Profile

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    Enstine Muki - April 21, 2017

    This is new to many people bro. A very few have had first hand contact with this technology so things are still cloudy around it. But as more information is being released, we are all getting closer to a better understanding.

    Hope you join us 😉

    Reply
Anthony Manzolillo - April 20, 2017

What’s up Enstine! There’s another world out there with these systems and I’m just learning. This stuff sounds a bit complicated. For someone new to bitcoin and really doesn’t understand this pos pow stuff, what’s the point? it is a way to make money or to offer a payment system? I’m a little blurry on the subject. Thanks man!

Reply
    Enstine Muki - April 20, 2017

    Hi Anthony,
    This is new technology and I don’t doubt the fact that people get still confused about how it works. Very few people have had direct contact with it to improve their understanding. Everything still looks cloudy now but sooner or later, we are going to be seeing clearer.

    As a matter of fact, these are methods used to mine digital coins. While they have different paths, they get the same results. More about this in the days ahead

    thanks for being part of the conversation

    Reply
Nayab Khan - April 20, 2017

Hey Enstine,

I am new to this cryptocurrency world. Thanks for giving us so much in depth technical detail about cryptocurrency SwissCoin, and a motivation to know more about it.
There is no way i could have get this knowledge.
Nayab Khan recently posted…Blog commentingMy Profile

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GAMO GOUOMPO - April 20, 2017

Bonjour Leadeur,
C’est tres impressionant de savoir que Swisscoin a ce precieux outil pour notre business. Je ne sais pas si tout ceux qui pretendent avoir les Coins ont des arguments pour decrire leur blockchain. J’ai peur que beaucoup parmi nous par ignorance sommes entrain de prendre position dans ces programmes sans comprendre ce que l’avenir reserve.
Dans tous les cas let us wait and see

Reply
    Enstine Muki - April 20, 2017

    Good morning leader.
    You know many people still don’t know where we are going. Besides, this technology is new and getting folks really confused.

    You don’t hear about this with other coins. I don’t want to mention them but it’s looks something not really clear.

    Let’s wait and see as you put it.

    Thanks for being part of the conversation 😉

    Reply
Lawrence - April 19, 2017

I am currently a full member of The Billion Coin Cryptocurrency
Just need to ask this simple question if there is a way to collaborate the two together

Thanks
Lawrence recently posted…Hospitality Operations Manager Jobs in Kenya (100K)My Profile

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    Enstine Muki - April 19, 2017

    Hey bro,
    These are two different currencies like Naira and CFA. Nothing stops you from using both 😉
    I don’t know if TBC has a blockchain and is trading already. Any more lights on that?

    Reply
Daniel - April 19, 2017

C’est tout simplement fabuleux comme travail que vous abattez. Les fruits récoltés correspondent au travail abattu. Congratulation Leader.

Reply
Chinonso Anyikwa - April 19, 2017

This is very educative… this is what most crypto investors don’t get…

Bitcoin used the POW which required work efficiency, as the word… WORK. But when you talk about POS, you talk about wealth efficient.. you get to stake.. this is just the major pointing difference as you explained

Now, it’s great swisscoin is making use of the hybrid… POW to POS which seems to be the perfect chain for their network as they’re fully decentralized… this would not just reduce cost efficiency but it would also get people to verify the network.. as all they ever wanted is benefits:)

Nice article brov
Chinonso Anyikwa recently posted…What is Hybrid Blockchain? Proof of Work and Proof of Stake ExplainedMy Profile

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    Enstine Muki - April 19, 2017

    Thanks for stopping by bro.
    SwissCoin is the people’s coin. This gives access to everyone with or without large financial capacities to invest in miners. They did well to settle for PoS. Many different cryptocurrencies are now moving to this algorithm.

    Better days ahead

    Reply

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