A great alternative to mining and staking: passive income for everyone

Many people who invest in cryptocurrency (e.g. buy a token or a coin on a cryptocurrency exchange) want to be part of something revolutionary and/or invest with the goal to make a profit. The latter might be the most important motivation for most people to join a cryptocurrency. There are many factors you can weigh in the process of deciding which cryptocurrency fits your ideal picture. For instance, the company and technological fundamentals, exceptional innovation that sets apart coin A from coin B, the philosophy of a company, a dedicated team, etc. Many factors depend on personal interests, subjective thoughts.

However, there are objective reasons why to pick one cryptocurrency above another. In this article we’ll focus on the different consensus, to be more specific: the opportunity to utilise the “DNA of a cryptocurrency” to obtain more coins or tokens. The three types of consensus we’ll discuss are Proof of Work (PoW), Proof of Stake (PoS) and Auxilium Proof of Authority (PoA).

Earning more coins or tokens utilising the way the cryptocurrency rewards its users, for creating new blocks on the blockchain, is a way to earn a passive income (e.g. income that doesn’t require your constant attention) with cryptocurrency. Very interesting for those who are looking for a higher ROI (return of investment) and don’t want the risks involved with trading.

Proof of Work — mining
Unfair competition for average Joe against elite and multibillion dollar companies

Bitcoin (BTC) — the mother of all cryptocurrencies — utilises PoW. PoW is by far the most well-known consensus. BTC is one of these cryptocurrencies that allows users, who have the proper equipment and computer knowledge, to mine BTC coins. The majority of coins and tokens work on the PoW consensus. In layman’s terms: the more you work the more coins, or fractions of coins, you get rewarded. No guarantees, but your probability of striking BTC when mining will increase when you increase computing power. Your computer(s) compete with other computer(s) to solve puzzles. The first to solve the puzzle, and create a new block, will win the reward: BTC when mining BTC (Coin A when mining Coin A).

Other well-known PoW cryptocurrencies are: Ethereum, Litecoin, Bitcoin Cash/SV, and Monero.

Pros of PoW focussing on passive income:

• If you have a lot of resources you are able to gain more BTC.

Cons:

• Most vulnerable to 51% attacks (can result in loss of coins and tokens);
• Lot of competition and decreasing odds of getting rewarded for your efforts;
• The increasing need for more resources (to buy mining equipment) and knowledge;
• High energy usage, thus not friendly for the ROI plus the environment;
• No guarantees of solving puzzles, thus no guarantees of getting rewarded.

It seems more and more PoW mining rewards are out of reach for the “average Joe” and more for the elite, and/or multibillion dollar companies. Not surprising Bitmain, a massive company, is nearing 50% of BTC’s hash rate (computing power). Which means this company alone has 50% chance of solving a puzzle before anyone else and running of with all the rewards. Not to speak of the consequences it could have if Bitmain had bad intensions and was able to increase the hash rate to 51%. With bad intensions they could harm Bitcoin and take coins from their holders. Like what happened recently when hackers attacked Ethereum Classic and Bitcoin Gold.

Proof of Stake — staking
Communities and developers explore advantages of PoS

Another way to earn rewards, and to earn a passive income, is staking. Staking is the equivalent of mining within PoS cryptocurrencies. Staking is becoming more popular and in the near future will be the new way to earn rewards with cryptocurrency giant Ethereum. Many developers are steering towards the Proof of Stake consensus as it’s more secure (i.e. less vulnerable for 51% attacks), offers a more easy to understand and arguably more fair and environmentally friendly means of earning rewards than mining. The larger the stake you hold the higher the odds of gaining rewards. Just like PoW you will compete against others. Although not based on computing power, but based on the size of the stake you hold.

Well-known PoS cryptocurrencies: NEO, Qtum, Waves and Nano.
dPoS (delegated PoS): EOS, Cardano and TRON

Pros of PoS focussing on passive income:

• Less vulnerability 51% attack;
• Lower energy usage, thus better for ROI plus the environment;
• Less complexity, meaning more people can participate;

Cons:

• Investors with many resources will be able to increase their odds of earning rewards by buying more coins or tokens while simultaneously lowering the odds of investors who hold less coins or tokens;
• Need to leave computer on 24/7 for best results of staking;
• No guaranteed rewards (e.g. if you leave your computer offline you will receive 0 rewards).

Objectively PoS cryptocurrencies have more pros when it comes to passive income than PoW cryptocurrencies, especially for the average cryptocurrency investor.

Proof of Authority and the Auxilium Interest Distribution Platform
Passive income for everyone

While mining and staking are used by many for earning passive income there is an alternative with many advantages over traditional cryptocurrencies. It’s new and lately brought to the market by Auxilium cryptocurrency (https://auxilium.global).

An incentive of mining and staking is that they pay rewards. Proof of Authority doesn’t pay rewards, so Auxilium (AUX) built the Auxilium Interest Distribution (AID) platform through which they pay all coinholders up to 8% interest per annum just for holding coins. From that 8%, coinholders give back: 0.64% goes to our charity fund for philanthropic projects and 0.64% goes to Auxilium research and development.

There’s no need to leave your computer on either. Simply holding coins in your personal wallet (non-exchange) address is enough to earn the reward.

Interest distribution (AID) comes from a premine account of 80 Million AUX coins and these have been included in the total supply cap of 300 million coins.

Interest distribution occurs on the 1st of each month and the calculation is based on the holdings you retain in your personal wallet across the month.

Auxiliums goal is to continue distributing interest indefinitely, through recycling profits.

Pros of Auxilium PoA with AID platform focussing on passive income:

• Least vulnerable to 51% attack;
• Guaranteed rewards up to 8% per annum, even when offline;
• Near to 0 energy usage, thus better for ROI plus Auxilium has a zero carbon footprint (CO2-neutral thanks to planting forests around the globe).
• No additional resources or knowledge needed to participate;
• Equal opportunities for everyone;
• Instantly support philanthropic projects;

Cons:

• People could argue PoA is more centralised, although also PoW and PoS show more signs of centralisation as cryptocurrency evolves and people with the most resources take the lead leaving the ‘average Joe’ behind.

PoA with AID platform has many advantages over PoW and PoS to become a passive income coin for everyone; both the average Joe as the multibillion dollar companies.

AUX is a new kid on the block and in the process of their first major cryptocurrency exchange listing.

Read more on Auxilium on the website or follow one of many social media.

Visit the website
https://auxilium.global

Selection of social platforms
https://t.me/auxiliumcommunity
https://twitter.com/auxiliumglobal
https://facebook.com/auxiliumglobal
https://discord.gg/59PXRM8

Visit the forum
https://forum.auxilium.global

Buy Auxilium (AUX)
https://mercatox.com/exchange/AUX/BTC
(amongst several exchange options)