Type Of Crypto's Network

in altcoin •  last year 

Disclaimer: This is just my understanding of several crypto's netwoks type. Please do your own research before making any investment.

As far as I know there are several type of crypto currencies based on how the block is made. Not to mention the token that is built on top of ethereum blockchain and also Proof of Brain in which Steemit is using. Maybe in another post I will try to explained that.

  1. Proof of Work (PoW)
    This is the very first type of cryptocurrencies, in which bitcoin is rely on. The Block that contain all of the transaction is made by solving a delicate cryptograpic problem using a powerful computer or gear. This type of cryptocurrencies requires more resource to keep the network going. Because it requires an expensive computer or a device which is design to do the calculation works. Besides it need an expensive gear, it also consume a lot of electricity.

  2. Proof of Stake (PoS)
    This type of networks is design to eliminate those electricity consumption and also the needs of expensive gear in the Proof of Work. In this kind of networks the block produce by those who keeps thier wallet opens for staking. In order to do it and get the stake rewards one must have some coin that stays in the wallet for specific period of times (aging) and also keep the wallet open and connect to the networks. The greater the coin you have (stake) the bette the chance you will get the block rewards. But in some cases this has become centralised by those who has alot of stake in their wallet.
    example of stake reward from the PoS network

  3. Masternode
    This is the latest technology in the cryptoword. A masternode is a peer or a wallet that has minimum collateral coins locked in the wallet to secure the network. And as the reward for securing the networks they are given a good amount of percentage of block reward. The very famous cryptocurrencies that using this technology is Dash, which has a very stable price at the moment.

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