Who will Win Proof Of Stake "Stakes"?

in #cryptocurrency7 years ago (edited)

Proof of stake is an interesting way to validate a coin.

In some ways it's just like the 19th century methods where a banks shareholders were responsible for ensuring a bank didn't issue more currency than it could back. I think a few proof of stake coins will ultimately rival bitcoin.

But which POS coin is the winner?

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Proof of stake will help someone win the store of value derby

One use of currency is a store of value. Usually it's the most widely available yet deflationary commodity like gold. If inflation is less than adoption rate ( which will converge with population growth) you gain value just by holding. On top of that you might earn interest. Banks could only create money by lending so that's why they paid interest. Coins create money and some can be given to stake holders through interest. Store of value is a huge use of crypto because no global currencies are limited in supply( though backing). It's hard to find a good store of value. Some want bitcoin to focus here ( the seg wit crowd) but hey can never win as store of value without interest and proof of stake. Bitcoin is better off pursuing transaction ease and speed to win the repatriation or other uses cases. But who will win as a store of value?

In the top ten only dash is proof of stake

Dash is hard to earn interest from for the little guy. You need a 70k master node to participate. Evolution may make things better but I don't think they are fundamentally focused here. They want to be transaction currency. See Ryan Taylor's background in payments. The problem is a deflationary currency is not good for transactions you actually want something with high inflation so you benefit from the hot potatoe effect. People keep using it so they don't have to hold it. A deflationary currency people want to hoard!

So who else is out there?

Pivx and Decred are moving up the charts. Between these I like pivx better because it seems focused on winning over the little guy through gamification (random interest payments) and small amounts needed to stake and a large yet capped coin supply. I have not looked at decred as closely. It it seems much more complicated. One problem is pivx software does not seem to work very well but presumably that can be fixed. If one of these makes a move to the top ten it will be hard to catch.

what about steem?

Steem is a great pos coin with rewards from curation and posting based on your stake.l and an exponential increase in influence. It's as if a bank paid expeontially more interest to its largest depositors. I don't think they win proof of stake derby because 1. They are focused more on blogging 2. They have demohasized the steem dollar, an amazing invention withering on the vine. 3) ultimately you must work to get your interest. No one wants that.

Who else?

The list of pos is long and many have failed. The winner may not have even started yet. This site listed some options a few years ago but hasn't been updated. I have also heard crown is an interesting pos coin.

What are your thoughts on who wins POS "stakes"

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Diamond (DMD) has been a big winner for me. Every month I sell some of my minting proceeds, never the principle, and buy Steem and other coins with it.

For mining a blockchain, POS is a deal killer. Peercoin is proof of that. You have to have PoW to secure the chain. Now, hybrid systems that allow PoS nodes to earn rewards as well are interesting and may be better than standalone PoW.

Why did peercoin fail? I haven't studied that one. Is it possible to have a coin with no mining? I guess I mean mostly proofvof stake coins.

Peer coin has been making a nice run recently.

#Gridcoin
Chain moves PoS, additional payout per Proof of Science, valuable calculations done via the BOINC network.

What did you say they did to the Steem Dollar?

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