Bitcoin Hard or Soft Fork, what’s the Difference?
July 18, 2017
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How does your favourate cryptocurrency Prove itself?

Bitmart looks at Cryptography systems.

The cryptoworld is moving at a quick rate of development and since 2009 to now various new types of coins evoled trying to solve different issues. I am going to explain briefly the difference between all these coins for better understanding of the way they work.

Proof of Work

This concept is easily understandable you give proof of the work done and you get rewarded. So example if you have One 13.5 Th S9 Antminer you will get rewarded by the amount of work done by this one machine if you have 2 machines you will get double the amount of reward.  The work done and rewards is worked out by the coins network this process is called “mining” where transcation is verified and the network  rewards you in new coins . There are lots of POW coins available such as:Bitcoin, Litecoin, Dash , Ethereum, Ehtereum classic, Zcash, Monero, Pascal, Digibyte, Sia, to name a few. Different mining equipment is used due to different mining algorythyms(the way the transaction is mathematically worked out in cryptography to encrypt the transcation for security).

Proof of  Stake

This concept can be explained by the olden gold rush whereby you take a wooden stake and claim your ground and anyone who want to mine on it pays royalties. Now in the cryptoworld for example you buy(stake) 1000 coins of it keep it in a Desktop wallet that must be running on a computer 24Hours and you get rewarded for staking(keeping) your coin. Now when you setup this wallet and keep a certain amount of coins in it you become a Masternode. These coins (instead of using mining) use an algorthim moving the coins from one Masternode to another Masternode confirming the transactions this way. Many coins use proof of stake at a certain % to stabilize the blockchain like DASH and later on Etheruim will add 10% of the blockchain to POS and 90%POW. Pure POS coins exist like Stratis, Chain coin to name a Few.

Proof Of Capacity 

Coins are mined by using any storage medium. This is known as POC Mining (Proof Of Capacity). For Example, anyone can mine Coins by allocating the empty space on their hard drive or multiple drives for the mining procedure. This makes BURSTCOIN the most GREEN, environmentally friendly cryptocurrency to mine, using hardly any resourses and it bought and sold on major cryptocurrency trade exchanges thus providing great value to miners. Three coins currently use this method for rewards BURST, STORJ, and SIA coin although SIA and Storj uses dual type POW and POC.

I see there are two more types of Proof coming out but the info is vague at the moment: Proof of Signature and Proof of Time. I will write about it when they are officially launched.

The whole point of mining any cryptocurrency and Masternodes is to be a Decentralized network that no one controls. Premined coins that has no fixed amount of coins can be centralized and controlled by the developers, big companies or Banks. People seem to forget the vision of Satoshi Nakamoto to get the whole worlds money on a Decentralized network where the community benefits and not one single person, big companies or Governments.

 

 

 

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