Blockchain technology-based cryptocurrencies are not only popular among investors but also among the community which is enthusiastic to find the solutions of complex mathematics algorithms (of course online!) in exchange for rewards. Let me just brief you about how blockchain works. Blockchain, as its name suggests, is a chain of blocks or verified transactions. In a network, when a transaction is initiated, a decentralized distributed ledger wraps up all the information associated with the transaction. To confirm the transaction and add a block in the chain, miners(market participants) compete against each other to solve the complex mathematical algorithm on their system. When the problem gets solved, the block gets added, and winning miners will be rewarded with Bitcoins and incentivized with transaction fees. In this article, let us find out how blockchain works on consensus mechanism(rules that everyone agrees to) of Proof-of-stake and list some of the best proof of stake coins 2020.
What Is Proof-Of-Stake? | Best Proof Of Stake Coins 2020
While reading about the blockchain mechanism, you must have encountered consensus mechanisms used while verifying the transactions. In simpler words, a consensus mechanism is an ornamental term for explaining rules which every miner agrees upon in regards to updating the ledger (addition of block). Miner has to provide an answer (known as proof) to the specific challenge before the right to update the ledger is given to him.
Proof Of Stake is one of the consensus mechanisms which gives the chance to miners to update next block-based or proportional to their stake or amount of currency miner is willing to freeze for a certain period.
Proof-of-stake works differently from a widely used consensus mechanism (proof-of-work) in cryptocurrency. Technically, no one is mining blocks in this mechanism, and also no rewards are not meant to them. But, they receive transaction fees as Proof-of-Stake rewards proportionate to the coins they have put on stake to attempt to mine a particular block. Not mining but forger would attempt to verify transactions in this mechanism. Randomly a winner is chosen to update the block depending on the proportion of stake provided to be used in particular block mining. It is one of the latest mechanisms to validate blocks securely, protecting them from 51% attacks and also following a more decentralized model without operating on crypto mining machines instead of holding PoS tokens or coins to participate in the process. Let us try to find out the top proof of stake cryptocurrencies to invest in 2020.
List Of Best Proof Of Stake Coins 2020
Some of the top pos cryptocurrencies in 2020 are:
ChangeNOW, the leading registration-free instant exchange platform, launched NOW Token in May 2018. The first token launched by an instant exchange platform, NOW allows its holders to list new assets on ChangeNOW, get cashback from exchanges (coming soon!) and now also to earn up to 25% APR through its brand-new Staking Program. One can easily get NOW from IDEX and Binance DEX in order to stake it, as well as receive it through various giveaways that the platform does fairly regularly.
PoS mechanism-based NavCoin is inexpensive and is associated with high transaction speed. It made the staking easy and possible even with your cold crypto wallets(secured!) by some added feature in 2018. You can purchase NAV for staking purposes from Binance, a regular crypto exchange.
NEO aims to modify the Proof of stake blockchain with its range of features. It supports the creation of numbers to multiple crypto-assets and certificates. It is a smart contract-based PoS which issues separate token GAS when you simply hold NEO in your crypto wallet. Crypto exchanges like Binance, OKEx, Kucoin, and many more allow you to purchase NEO from their platforms.
VeChain has Proof of Authority coin( similar to Proof of stake) which will return you VTHO token if you stake your VETs. With a user-friendly mobile app, you can easily stake your tokens and can earn transaction fees. One can easily find VET, one of the best PoS cryptocurrencies, on Kucoin, Binance, and many more exchanges.
Cosmos, based on Proof-of-stake, facilitates the blockchains to communicate with each other on the Internet of blockchains. It has the native coin called ATOM whose popularity can be easily proved as the company raised over $$16 million in its Initial Coin Offering. In a very short span of time, it is considered as one of best proof of stake cryptocurrencies in 2020.
Waves tokens empower users by providing the experience of Web 3.0 applications which led to complete control of their digital assets, personal data and privacy. These tokens are designed for enterprises that aim to deploy blockchain technology for better security, transparency, and verifiability. You can easily purchase them from a variety of regular crypto exchanges.
IOSToken is popular in the gaming industry which has the advantage of a high number of transactions per second. As part of the staking process, token holders vote for node partners to validate the verification process. As its name suggests, it is mainly used in services involved in internet of services increasing the speed of transactions with better-decentralized models.
“Proof-of-stake cryptocurrencies” is relatively a new invention in the crypto space, but it is gaining traction among crypto enthusiasts and they are actually contributing in increasing the market cap by purchasing them in higher quantities.
The Bitcoin market is increasing in terms of trading volume, market capitalizations, number of traders and developers, and also the number of products and service providers. To maintain its position and attract more of the investors, better performance is the need of crypto space which is assured by a variety of new tokens and coins with added features of increased transaction speed, traceability efficiency and also in terms of decentralization. The proof-of-stake mechanism also aims to improve blockchain technology and gain significant prevalence in industry. The lower barrier to entry in the mining process, need of no infrastructure and relatively less vulnerability to 51% attacks, is currently attracting the community to deploy the PoS based application and coins. The long term sustainability is still to be proved by the new consensus mechanism of Proof of stake. But, you try your hands to buy some of the best Proof Of Stake coins 2020 and utilize as the new source of investment.
Articles You May Read