2018-02-05 13:42:21

About Proof-of-stake technology

About Proof-of-stake technology

Dear users!

We draw your attention that the reward for coins constructed using PoS technology is not charged to the deposit addresses (mining) of the account. The deposit / with of funds to these addresses operate in the standard mode.

About Proof-of-stake technology

Proof-of-stake (PoS) is a method of protection in crypto-currencies in which the probability of a participant forming a block in a block is proportional to the share that the units of this crypto currency belonging to this participant are from their total number. This method is an alternative to the Proof-of-work method, first implemented in 2012 in the PeerCoin crypto currency. The idea is to use a "stake" as a resource that determines which node receives the right to harvest the next block.

In the Proof-of-Stake approach, nodes also try to hash the data in search of a result less than a certain value, but the difficulty in this case is that it is distributed proportionally and in accordance with the balance of the given node. In other words - in accordance with the number of coins (tokens) on the user's account.

Thus, a better chance of generating the next block has a node with a larger balance. The scheme looks attractive enough primarily because of the small requirements for computational resources, and also because there is no question of "wasted" capacity.

When using this method, the block formation algorithm does not depend on the capacity of the equipment, but the block is more likely to be generated by that account with the current balance greater. For example, a participant owning 1% of the total quantity will, on average, generate 1% of new blocks.

BTC-Alpha Team.