What is important about Proof of stake coins? When it comes to crypto, there have been many inhabitants for adoption. A big reason often mentioned in the mainstream media is electricity consumption. This is an undeniable fact: Bitcoin is consuming more electricity than the entire country of The Netherlands. However, to consider cryptocurrencies inadequate and inefficient based on this fact is too premature. Many innovations are happening to tackle the issue, and one of the primary pushes is the introduction of Proof of Stake coins / – blockchain networks. In this article, we will highlight the power of Proof of Stake and also zoom into different coins that leverage this network.
How does Proof of Stake (coins) work?
In a Proof of Stake network, consensus on new transactions is reached through validation by a group of network participants. These participants are based on their stake in the network, hence the name Proof of Stake. The larger the stake in the network, the higher the probability you will be selected to validate the transactions. This ensures that the network participants act for the benefit of the network.
Some examples of (Proof of Stake) coins
Many coins are now leveraging this type of consensus mechanism. We will shortlist a few examples for you.
Cardano is one of the largest operating networks that is leveraging Proof of Stake. The total network is currently using 6 gigawatt-hours of electricity, which is equal to over six million households. This is still something to be improved on, but already considerably better than Proof of Work networks such as Bitcoin.
Another well-known network is Solana. This is a single-chain network that focuses on scalability while maintaining decentralization. They have incorporated additional mechanisms to ensure security in the network, such as their unique Proof of History (PoH) technology.
Blockchain is providing interoperability to blockchain networks. With their cross-blockchain transfers, they enable users to transfer data and assets across chains. This is a novel approach, as this was limited to just tokens in the past.
GRN is the token on Grid. Also protected with Proof of Stake and contains some really useful functionalities as: GRNPay (send & receive payment requests over the Grid), ExNode (convert any currency to a (stable) currency on Grid) and EnScrypt (send encrypted messages). Created from a sustainable point of view. A promising Proof of Stake coin, add it directly to your wallet!
Inhibitors of moving to Proof of Stake
To get great results, invest in the best altcoins in 2022, proceeding wisely and responsibly. By properly estimate which currencies are exploding, you should also check the teams behind the altcoins and listen carefully to cryptocurrency experts. After all, the best cryptocurrencies are not necessarily those climbing at high speed: even Bitcoin prices have bottomed occasionally. Much can happen in 2022. So don’t be tempted to rush things, think before you make a choice. After finding the right information, you can decide for yourself which altcoin is worth the investment!