Pool of Stake - Pool for Proof of Stake Blockchains

Pool of Stake (PSK) is a first of its kind, decentralized pool for Proof of Stake, the future of blockchain. Qtum, BOScoin, Tezos and other PoS coin holders can unite in the Pool of Stake and start Mining 2.0, generating daily forging rewards by simply staking their PoS coins. PSK is a fully decentralized, self-regulated and completely trustless pool. This is made possible by powerful use of Smart Contracts and globally distributed nodes. PSK makes Mining 2.0 more secure and more profitable for individual PoS coin holders.

Proof of Work has been the state of the art of consensus algorithms for first-generation blockchains. Proof of Stake is the new kid on the block and 2018/2019 will be the years in which PoS will be fully adopted by major players in the blockchain field. When PoS becomes the new gold standard of blockchain, Pool of Stake will be ready to become the biggest forging pool for PoS. The core value of cryptocurrencies lies in fully trustless, permissionless protocols and decentralization. PoW is not ecologically sustainable and exhibits fundamental problems that compromise decentralization.

First-generation cryptocurrencies, e.g. Bitcoin, create new coins via mining, that is, by using computational power to solve mathematical puzzles based on blockchain rules. Due to significant growth rate of the network over time, Bitcoin’s PoW algorithm is facing fundamental problems. With the current block size, Bitcoin has a maximum transaction capacity of 7 transactions per second, with peak transaction costs of around $50 and an annual energy consumption of 42 TWh (the same amount as New Zealand). These facts demonstrate that the first-generation digital cryptocurrency network Bitcoin has fundamental limits for scalability and problems with efficiency that cause it to that stray from its core philosophy.

While the Bitcoin community was fighting and becoming divided over Bitcoin and Bitcoin Cash, in 2012 other parts of the community took a step into the future by inventing a new consensus algorithm: Proof of Stake (PoS). In 2018/2019 Ethereum will switch from PoW to PoS. PoS is the future of blockchain and PSK is already here to bring PoS coin holders together and make the greatest profit possible in Mining 2.0.

Proof-of-work: a method which requires miners to validate transactions on a blockchain by working out a mathematical function (called hash).

Proof-of-stake: a method which allows miners to validate block transactions according to how many coins they choose to put at stake on that network (as deposits). Here is a post where the founder of Ethereum explained a design philosophy of PoS.

Both methods exist to serve a common purpose on the blockchain: To validate that the person sending bitcoin (or any digital currency) has the correct amount of funds in their account. And that after the transaction is done, he or she no longer has the coin in their account (aka. to avoid double spending).

And yet, the two take an inherently different approach towards that goal. PoW v.s. PoS: Buying a shovel v.s. Deposit in a bank.

By definition, Proof-of-Work means to solve the hash function and prove the result is correct. While it’s hard to unravel the function, it’s easy for other miners to verify the result once a miner gets it – just putting it back to the function to see if it works out, like an algebraic problem. If it does, congrats! Here’s the prize. So take out your shovel, do the physical work, and show everybody you have mined the gold.

Proof-of-Stake, however, is a mechanism that needs no math. Instead, inside the network, you simply lock up a certain amount of your stake, i.e. your whatever cryptocurrency generated in this blockchain. That is your proof because something is at stake. The network uses a random selection algorithm to determine who the next block creator is, with factors like how many coins you lock up, what the coin’s age is, or how long you have locked up already, etc. Different PoS-based blockchain has various criteria, but the gist is not much hardware work is required. It’s somewhat like deposition and interests.

In PoW-based blockchain, miners do the hard work and will be rewarded. Recall Bitcoin and Ethereum, where a new block rewards 12.5 Bitcoins and 5 Ethers. But there’s another thing called a transaction fee. When you send a Bitcoin to me, that transaction needs to be validated and documented on the blockchain through the hash function math that miners are doing. But they are not doing it for free so you need to attach a transaction fee. The next lucky miner who creates the next block will receive all the transaction fees and the block reward itself, so it’s 12.5+ Bitcoins.

In PoS method, the blockchain has no block reward. Only transaction fees. That’s also why participants in the PoS blockchain should be called validators, not miners. They only facilitate the validation process of transactions without the mining activity like PoW does.

For Information

Website: https://www.poolofstake.io/

Whitepaper: https://www.poolofstake.io/wp-content/uploads/2018/04/Pool_of_Stake_whitepaper.pdf

Twitter: https://twitter.com/poolofstake

Facebook: https://www.facebook.com/poolofstake

Telegram: https://web.telegram.org/#/im?p=@poolofstake

ANN: https://bitcointalk.org/index.php?topic=3283742.0

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