Proof of Stake (PoS)

Proof of stake (POS) -


The Proof of Stake (PoS) concept states that a person can mine or validate block

transactions according to how many coins they hold. This means that the more coins

owned by a miner, the more mining power they have.


 With Proof of Stake (POS), cryptocurrency miners can mine or validate block

transactions based on the amount of coins a miner holds.

 Proof of Stake (POS) was created as an alternative to Proof of Work (POW), which is

the original consensus algorithm in Blockchain technology, used to confirm

transactions and add new blocks to the chain.

 Proof of Work (POW) requires huge amounts of energy, with miners needing to sell

their coins to ultimately foot the bill; Proof of Stake (PoS) gives mining power based

on the percentage of coins held by a miner.

 Proof of Stake (POS) is seen as less risky in terms of the potential for miners to

attack the network, as it structures compensation in a way that makes an attack less

advantageous for the miner.


The proof of stake was created as an alternative to the proof of work (PoW) concept, to

tackle inherent issues in the latter. Currently, only altcoins use the proof of stake

concept. When a transaction is initiated, the transaction data is fitted into a block with a

maximum capacity of 1 megabyte, and then duplicated across multiple computers or

nodes on the network. The nodes are the administrative body of the blockchain and

verify the legitimacy of the transactions in each block.

To carry out the verification step, the nodes or miners would need to solve a

computational puzzle, known as the proof of work problem. The first miner to decrypt

each block transaction problem gets rewarded with a coin. Once a block of

transactions has been verified, it is added to the blockchain, a public transparent



Proof of Stake Coins:

1. Binance Coin (BNB):

BNB, or Binance Coin, is a cryptocurrency created by Binance. Binance Coin (BNB)

powers the Binance Ecosystem. As the native coin of Binance Chain, BNB has multiple

use cases: fueling transactions on the Chain, paying for transaction fees on Binance

Exchange, making in-store payments, and many more.

Where you can use BNB

Pay trading fees – Receive a 25% discount on trading fees using BNB

Pay travel expenses – Travel the world and pay with BNB at merchants in Australia

Pay by credit card – Pay your credit card bill with BNB

Stake and shift BNB via VAULT – Stake and shift BNB via Mithril’s VAULT wallet

Buy virtual gifts – Buy virtual gifts on live video streaming platform

Pay via XPOS – Purchase anything from stores that use the XPOS device by Pundi X

Pay in BNB – Pay with BNB on DENT Apps

Pay BNB in the pilot shop – Pay BNB for aircrafts in the pilot shop powered by Aeron

Use BNB to make impact investments – Use BNB to make impact investments on

Moeda platform globally

BNB Burning Mechanism

Binance plans to destroy BNB each quarter based on the trading volume on our

exchange, until 50% of the total BNB supply (100 million BNB) is burned. All

transactions will be recorded on the blockchain. Eventually, only 100 million BNB will

remain in circulation.


2. Cardano (ADA):

Cardano is a decentralized public blockchain and cryptocurrency project and is fully

open source. Cardano is developing a smart contract platform that seeks to deliver

more advanced features than any protocol previously developed. It is the first

blockchain platform to evolve out of a scientific philosophy and a research-first driven

approach. The development team consists of a large global collective of expert

engineers and researchers.


3. Solana (SOL):

Solana is a single-chain, delegated-Proof-of-Stake protocol whose focus is on

delivering scalability without sacrificing decentralization or security.

Core to Solana’s scaling solution is a decentralized clock titled Proof-of-History (PoH),

built to solve the problem of time in distributed networks where there is not a single,

trusted, source of time. By using Verifiable Delay Functions, PoH allows each node to

locally generate timestamps with SHA256 computations. This eliminates the need for

the broadcasts of timestamps accross the network, improving overall network



4. Polkadot (DOT):

Polkadot development is on track to deliver the most robust platform for security,

scalability, and innovation. Currently, Polkadot is in the Governance and Removing

Sudo phase of launch.

Polkadot Features:

True interoperability – Polkadot enables cross-blockchain transfers of any type of

data or asset, not just tokens. Connecting to Polkadot gives you the ability to

interoperate with a wide variety of blockchains in the Polkadot network.

Economic & transactional scalability – Polkadot provides unprecedented economic

scalability by enabling a common set of validators to secure multiple blockchains.

Polkadot provides transactional scalability by spreading transactions across multiple

parallel blockchains.

Easy blockchain innovation – Create a custom blockchain in minutes using the

Substrate framework. Connect your chain to Polkadot and get interoperability and

security from day one. This ease of development helps Polkadot’s network grow.

Forkless and future-proof – Polkadot can upgrade without hard forks to integrate

new features or fix bugs. This capability enables Polkadot to easily adapt to changes

and upgrade itself as better technologies become available.

Security for everyone – Polkadot’s novel data availability and validity scheme allows

chains to interact with each other in a meaningful way. Chains remain independent in

their governance, but united in their security.

User-driven network governance – Polkadot has a sophisticated governance system

where all stakeholders have a voice. Upgrades to the network are coordinated on-

chain and enacted autonomously, ensuring that Polkadot’s development reflects the

values of the community and avoids stagnation.


5. Avalanche (AVAX):

Avalanche is an umbrella platform for launching decentralized finance (DeFi)

applications, financial assets, trading and other services.

It aims to be something of a global assets exchange, allowing anyone to launch or

trade any form of asset and control it in a decentralized manner using smart contracts

and other cutting-edge technologies.

Developers at Ava Labs claim that Avalanche is the first smart contracts network to

offer transaction finalization in under one second as standard.

Avalanche launched its mainnet in September 2020. The platform’s native token,

AVAX, performs various tasks within Avalanche and also functions as a rewards and

payment system for users.


Speed – The Avalanche platform uses a novel consensus protocol created by

distributed systems researchers in 2018, also called “Avalanche”, to permanently

confirm transactions in 1-2 seconds.

Scalability – Avalanche handles thousands of transactions per second and can

accommodate thousands of validators with no loss of performance.

Security – Avalanche provides stronger security guarantees than either classical or

longest-chain consensus protocols.

Smart Contract Support – Avalanche supports creation and use of Solidity smart

contracts as well as all your favorite Ethereum tools like Remix, Metamask, Truffle and


Private/public Blockchains – Users can create their own public or private blockchains.

Finance-focused – Avalanche was built with serving financial markets in mind. It has

native support for easily creating and trading digital smart assets with complex custom

rulesets that define how the asset is handled and traded. The assets could represent

financial instruments such as equities, bonds, debt, fractionalized real estate, or

anything else.


6. Algorand (ALGO):

Algorand removes the technical barriers that for years undermined mainstream

blockchain adoption: decentralization, scale, and security. Now you can build on a

stable platform you trust.


7. Cosmos (ATOM):

Cosmos is a blockchain ecosystem where thousands of dApps interoperate to create

the foundation for a new token economy. Cosmos is a decentralized network of

independent parallel blockchains, each powered by BFT consensus algorithms like

Tendermint consensus.


8. Elrond (EGLD):

Elrond is a distributed transactional computation protocol which relies on a sharded

state architecture and a secure Proof of Stake consensus mechanism.

The Elrond eGold (EGLD) is the native Mainnet token, replacing the ERD ERC20 and

BEP2 tokens. It will be used for everything from staking, governance, transactions,

smart contracts and validator rewards.

Elrond’s goal is to be a high throughput, fast transaction speed and low transaction

cost platform, allowing efficient and competitive dApp user experiences in real world

use cases.


9. eCash (XEC):

Bitcoin Cash ABC (BCHA) has rebranded to eCash (XEC) and has redenominated to a

1:1000000 ratio. The eCash branding came into effect on July 1, 2021.

eCash is a cryptocurrency that’s designed to be used as electronic cash. Just like the

invention of emails made it possible to send direct messages online, eCash makes it

possible to send money directly to other people online. This includes being able to use

eCash to pay for goods and services.

eCash is a cryptocurrency, whereas Bitcoin ABC is the software businesses use to

interact with and maintain the eCash network. The team behind the Bitcoin ABC

software also operates under the same name.


10. NEAR Protocol (NEAR):

NEAR is a decentralized development platform built on top of the NEAR Protocol,

which is a public, sharded, developer-friendly blockchain. The network runs on a Proof-

of-Stake (PoS) consensus mechanism called Nightshade, which aims to offer

scalability and stable fees.

The NEAR token (aka $NEAR) is a utility token which powers the NEAR Protocol

blockchain and all applications which use it. It is used for:

Fees for processing transactions and storing data.

Running validator nodes on the network via staking NEAR tokens.

Used for governance votes to determine how network resources are allocated.

NEAR tools include:

NEAR SDKs which includes standard data structures and testing tools for Rust and


Gitpod for NEAR to create a zero time onboarding experience for developers.

NEAR Wallet that lets application developers create streamlined user experiences.

NEAR Explorer to aid with both debugging of contracts and the understanding of

network performance.

NEAR Command Line Tools to allow developers to deploy applications from local