Previously Proof of Work (PoW) algorithms were the only ones available but after Proof of Stake (PoS) algorithms got explored, the crypto space realized that this is way better than the traditional PoW algorithm. If you are opting for Proof of Stake working mechanism, then you don’t have to only worry about the return on investment, but also some of the economic and technical benefits by enabling the holders with the option of running the masternodes or staking coins in a stakable wallet. By using Proof of Stake algorithms, you can achieve the same distributed consensus at a much lower cost, and it is eco-friendly as well.
With the Proof of Stake projects, you might get a larget award with a large stake, but it's not necessary with every coin as some of them return a fixed amount while some of them return a random number of coins for staking. The basic difference between Proof of Work (PoW) and Proof of Stake (PoS) is that in case of PoW, the miners accessing the computing power need to hash transactions cryptographically to earn block rewards.
In case of PoS, the holders holding small amounts can also earn rewards for their participation in the network.
Cardano is similar to Ethereum in the context of smart contracts and known as the third generation blockchain developer, which has one of the largest market capitalizations amongst the Proof of Stake coins. Cardano uses a unique technology in Proof of Stake consensus called Ouroborus. This unique algorithm helps determine which nodes to mine and even places great emphasis on security factor.
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BNB mainnet coin was recently released, which uses a Proof of Stake (PoS) consensus and a Byzantine fault tolerant (BFT), wherein you can send or receive assets, burn or freeze your tokens, create trading pairs on Binance DEX (decentralized exchange), which is a peer-to-peer (P2P) protocol and enables the users to exchange crypto assets directly between them. This is one of the best staking coins to earn passive income.
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Neo, was previously known as AntShares, and is a major Proof of Stake coin, which has been pretty popular amongst the crypto folks. Neo exists on Neo’s blockchain and has a crypto token called GAS, which can be staked for a good return and you don’t have to keep the staking wallets open always like other Proof of Stake cryptocurrencies. The holder earns NeoGas as returns or dividends and is proved to be one of the best staking tokens.
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Private Instant Verified Transactions (PIVX) is one of the eminent Proof of Stake cryptocurrency that focuses on security and privacy while transactions. It is a DASH fork that enables its users to stake coins with a decent return. One more critical thing is that there is no cap on the staked amount which is a low entry barrier. If you run a masternode of 10,000 units of PIVX, you will get an annual 5% return on your holdings. This is one of the best staking coins in 2019.
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Tron has shifted from Proof of Stake to Delegated Proof of Stake (DPoS), wherein it utilizes the ongoing voting system and reputation system to achieve a consensus. There is more autonomy to decide in DPos, and the members of the community will be self-governing the network. Another advantage is reduced costs and power consumption, which makes it one of the most efficient Proof of Sake cryptocurrencies. This is considered as one of the best passive income cryptocurrency.
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We have already mentioned the coins above.
Staking can be nearly as profitable as the conventional PoW mining, with the least risk possible.
A PoS coin is one, which uses the staking algorithm, or the voting system.
The creator of Peercoin invented Proof of Stake in 2012, which was the first PoS coin.
This one involves lesser risk, and keeping other factors in mind, PoS is user-friendly.
dPoS is a consensus mechanism, which helps maintain truth across the network, acting as a form of digital democracy.
In Cryptocurrency, Staking is the process of hodling crypto in your wallet, earning an interest, depending on the duration of hodling.
Staking pools are focused on making the most out of the staking conglomerate.
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2019-09-03 10:25:32.945864 | 2 min