The popular cryptocurrency, Ethereum, is transitioning from the Proof of Work system to the Proof of Stake system in their blockchain network. It means every miner now needs to stake their ETH assets in their wallet to get a bigger chance for them to create a block and validate a transaction.
Without doing this, they will no longer have the advantage of earning good profits from version 2.0 of the Ethereum network.
Proof of Stake system in the blockchain requires the users or miners to stake a certain amount of their cryptocurrency in their wallet to take part in the network’s transaction validations and other activities.
In the Proof of Work system, staking is not a requirement, and you can mine the cryptocurrency even when you have no assets in your wallet.
The Proof of Stake system will change the way you mine the cryptocurrency, but there will be various advantages you can get.
The Reasons Proof of Stake is Better than Proof of Work
The Proof of Stake system in the blockchain network offers more features when compared to the Proof of Work system.
With the POS system, mining the cryptocurrency will be better for all users in the network, as they will need to prove their worth by staking their cryptocurrency in order to create blocks in the blockchain network.
In the Proof of Work system, you just need to put as many devices as possible in the mining pool to give you more chances to create blocks in the network.
Here are the reasons Proof of Stake is better than Proof of Work:
- To become a miner in the POS blockchain, you need to have real assets on the cryptocurrency you are trying to mine, so it’s not just about the number of devices you put into the network.
- You will need to use less energy for the mining operations, as you will only focus on the GPU hardware for the mining operations.
- Proof of Stake will allow you to keep the network decentralized, which means avoiding it being centralized in some ways by creating many blocks and mining pools.
- The hardware requirements for mining in the POS blockchain network will be lower than the POW system, but you still need to have strong GPU hardware to take part in the mining operation.
- It is a better system because the validators in the network need to have a certain number of assets to stake before they can validate any transaction, ensuring better overall security for the network.
Also Read: bitcoin code review
Here are the 3 most profitable Proof of Stake (POS) Cryptocurrencies you can invest in today:
1. DASH
DASH is a cryptocurrency that focuses on digital transaction fulfillment, and it aims to provide the users the digital money they can transfer anytime and anywhere. Aside from being the digital money for the users, DASH users can also use it as a crypto investment, just like any other cryptocurrency.
With DASH, you can transfer it anywhere or use it to buy products from various merchants. You can access it from various platforms, including desktop and mobile devices.
Features:
- DASH allows you to get paid with digital currency, pay bills, and buy products from various merchants.
- There are also various ATMs that allow you to access your DASH assets and withdraw it just like when you use your debit or credit cards.
- DASH is available to use in various countries in the world, and it already supports various merchants and services that allow you to use it as a legit digital currency.
- It allows you to transfer your DASH funds to other users with 1 second transaction speed and near-zero fees.
- The value of 1 DASH is around $190 USD as of August 2021.
Official URL: https://www.dash.org/
2. Cosmos (ATOM)
Cosmos is the Proof of Stake blockchain network that hosts the cryptocurrency called ATOM, which focuses on building a decentralized system that connects various apps and services.
With the interconnected nature of Cosmos, you can connect various services and digital assets in this network, and with its decentralized nature, you can keep everything secure and private.
The Cosmos Hub, which is the name of the blockchain network, gets its support and security from the staking of ATOM, which is its cryptocurrency.
ATOM Features:
- Staking on ATOM assets in the Cosmos Hub can yield around 9.7% per year, so it’s quite profitable to mine this cryptocurrency.
- You can have power to keep the Cosmos Hub security by staking your ATOM assets in this network.
- By staking your ATOM assets, you can also contribute to the future of this blockchain network.
- You can earn rewards in this network by staking your ATOM assets and becoming a validator, and the rewards will come from various things, such as transaction fees and new ATOM asset creations.
- The current value of 1 ATOM is around $15 USD as of August 2021.
Official URL: https://cosmos.network/
3. Tezos
Tezos is the blockchain network that holds the Tezos tokens called Tez, which you can use to take part in the blockchain network development.
Baking is what you call the staking process in this network, and each baker will need to stake their Tezos assets to take part in the network. They can become the validators and earn rewards by staking Tezos assets.
Features:
- Tezos is the blockchain network focused on security, which is upgradable and designed to last.
- It is the platform built and designed to be governed by the people (the users) who take part in the network.
- It uses an energy-efficient algorithm to make mining Tezos something everyone can do.
- Tezos uses the smart contract system to ensure the best security in the network for validating transactions.
- The current value of 1 Tezos is around $3.5 as of August 2021.
Official URL: https://tezos.com/
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Conclusion
These are the most profitable Proof of Stake cryptocurrencies you can mine or invest in today. With the Proof of Stake system, the blockchain network becomes more energy-efficient, meaning that you don’t need to spend as much energy as when you mine for Proof of Work cryptocurrencies.
Also, the Proof of Stake system allows you to take part in the more secure network, as you need to have real staking assets in the network before you can become the validator in it.
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