Cryptocurrency

2020?the year of Proof-of-Stake

Will be 2020, the year of Proof-of-Stake (in short: PoS) block chains? – In short: Maybe, at least there are good reasons for this. Because Ethereum and Cardano plan in the first quarter of 2020 the (Re)Launch of the PoS network. On the one hand, Ethereum will change his Blockchain to a Proof-of-Stake consensus mechanism, and on the other hand, Cardano will upgrade its existing Proof-of-Stake mechanism, and make available to the Public.

Ethereum and Cardano: Proof-of-Stake by 2020

We begin, however, in the case of Ethereum. The second largest Blockchain platform in the world is already committed for 2014, your consensus mechanism of Proof-of-Work to Proof-of-Stake to change. Ethereum co-founder Vitalik Buterin sees in the transition from PoW to PoS, the decisive step Ethereum “to give a more Mature”. So Buterin said in the context of a “Sharding Workshops” on the topic of scalability and consensus mechanism:

Ethereum 1.0, the (incomplete) attempt by some people to create the world’s computer; Ethereum 2.0 with PoS, however, will be actually the world computer.

Proof-of-Stake, an old Shoe? EOS and Tezos as examples

Now of course it is not so, as the idea of Proof-of-Stake would be a novelty, which emerged only this year. The concept of Proof-of-Stake consensus mechanisms are already in place since 2012. Some of the well-known block chains such as EOS or Tezos are already working with (modified versions) of Proof-of-Stake. Even if there are good reasons for Proof-of-Stake (see next section), were not able to prove the above-mentioned block chains but that are a Proof-of-Work System like Bitcoin or (currently) Ethereum regarding the use or the safety superior. What speaks for Proof-of-Stake?The biggest difference from the Proof-of-Stake, compared to Proof-of-Work is that there is no Mining. No Mining means also that the negative components of Mining accounts for – specifically, that the enormous consumption of electricity for “the solution of complex math-not applicable tasks”. The supporters of PoS argue, therefore, that a PoS-based Blockchain sustainable, safer and significantly more scalable than a traditional PoW-is System.With a PoS System, the validators must have the underlying currency to possess – and this represents a huge difference to Proof-of-Work. To sign while in a PoS System, the probability of a Block of English depends on how much “wealth” or how many Coins you own (. stake), depends on a PoW mechanism of the Hashrate. To put it differently: to be able to as a Validator in a PoS System act, requires an investment in the Coin. In a PoW System is an investment in Hardware is needed. While at PoW-systems, mainly the high energy consumption is criticized, it is criticized in the case of PoS systems, the increasing concentration of wealth.Trade on the most successful Crypto-exchange. If you’re looking for a reputable point of contact, to act with real crypto currencies, then take a look at our Binance Test 2019! In this article, we have analyzed all the features and benefits of the crypto-exchange in more detail and evaluated. The most the most popular crypto-stock exchange today! Now on Binance sign up.

Cardano, with the Upgrade of the PoS system

We now come to Cardano. The Cardano-the Blockchain is already based on a Proof-of-Stake System, which is supposed to be in the coming year, an Upgrade is carried out.The big change will be that “the privilege of being a Validator” is now made available to the Public. Currently, the Cardano Blockchain sees three big organizations as validators: the Cardano Foundation, Input Out Hong Kong (=IOHK) and Emurgo. This (Central) structure has already led in the past to some of the criticism. Charles Hoskinson, CEO of IOHK, screwed the expectation of the imminent Upgrade now to high. He said that, with the step of the network to the public, the factor of people who use the Software, will be 100 Times higher than it is currently for Bitcoin, Ethereum, or a similar PoW-System. So, Hoskinson said in an interview the following:

The Upgrade marks the start point, the Cardano Protocol make fully available to the Community to.

Tim Ogilvie, the founder and CEO of the Staking platform Staked, underlines this major step for the PoS now, however, said that 2019 was already a big year for PoS.

This year we have already invested millions of dollars in Proof-of-Stake of the Assets. Everything went smoothly, and billions in electricity costs could be saved. Next year we will see now with the Upgrades of Ethereum and Cardano another milestone for Proof-of-Stake systems. We are definitely excited.

Ethereum and Cardano to make their consensus mechanisms next year, to Proof-of-Stake. The debate Proof-of-Work vs. Proof-of-Stake is even more intense. How do you feel about the transition? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.