List of Proof of Stake coin ( Cryptocurrencies ) Part 1.

daveandrean (24)in #pos • 7 years ago (edited)

Proof of Stake and the Importance of Masternodes

Proof of stake is a way to validate transactions and achieve distributed consensus. A trustless and distributed consensus system is one where you can send and receive money without having to trust or depend on third-party services because users can directly verify the information.

Proof of Stake is an algorithm that has the same purpose of Proof of Work’s but has a different process to reach the same goal. Proof of Work’s algorithm rewards miners who solve the mathematical problems in order to create new blocks and validate transactions. Proof of Stake’s algorithm chooses the creators of new blocks in a deterministic way, which depends on their wealth, also referred as ‘stake’.

In a PoS system doesn’t exist block rewards because all digital currencies were previously created in the beginning. So this means that Miners, called Forgers instead, only take the transaction fees.
What about Masternodes?

Masternodes are nodes that run the same wallet software on the same blockchain, but they provide additional services to the cryptocurrency network such as voting system and immutable proposal, decentralized budgeting system, decentralized governance, instant transactions, and increased privacy.

Masternodes are paid for providing these services, the payment is a portion of reward for each block. This results in a passive income for masternodes owners minus their running cost.

This is the list of all major Proof of Stake Cryptocurrencies:

ArticCoin (ARC)
Website: https://arcticcoin.org/en-EN