Proof of Stake (PoS) consensus mechanism is a type of consensus mechanism for blockchains that work by choosing validators based on the amount of cryptocurrency they are holding. It requires you to stake coins to be chosen as a validator.
While Proof of Work (PoW) might be more effective when it comes to security, Proof of Stake (PoS) tops Proof of Work (PoW) in speed and energy efficiency because it doesn’t have any need for the complex computations that are required by Proof of Work (PoW). It is also a better and more popular option among crypto investors because users can earn rewards just by staking the cryptos. Several cryptos currently run on the Proof of Stake (PoS) consensus mechanism and we’ll be going through four which include;
- Cardano (ADA)
- Polkadot (DOT)
- NEAR Protocol (NEAR)
- CashFi (CFI)
Being a blockchain network developed out of a scientific philosophy and a research-first driven approach, Cardano (ADA) is a platform for innovators and change-makers. It is a decentralized open-source blockchain network running on a Proof of Stake (PoS) consensus mechanism called Ouroboros. The platform has pioneering technologies that provide unbeatable security and sustainability to decentralized apps (DApps). They believe they have provided everyone with the technologies and tools required to make positive changes in the world.
Polkadot (DOT) is a Nominated Proof of Stake (NPoS) blockchain network with a promise to provide the most powerful platform for scalability, innovation, and security. Founded by the Web3 Foundation, Polkadot (DOT) is an open-source project.
The features it offers now are; true interoperability, easy blockchain innovation, economic and transactional scalability, security, high energy efficiency, and user-driven governance. The platform will allow a completely decentralized web where its users are in full control. DOT which is the native token of the Polkadot network provides three specific uses which are governance, bonding, and staking.
NEAR Protocol (NEAR)
NEAR is a decentralized platform developed on the NEAR Protocol. It is a platform running on Nightshade which is a sharded, proof of stake (PoS) layer one blockchain that is secure, easy to use, and scalable. It is a collective comprising of an ever-growing network of community members, creatives, and developers from around the world.
The NEAR token is a utility token that is used for transaction fees, running validator nodes, governance votes, and also staking. On its website, NEAR Protocol (NEAR) says developers should build on its blockchain because it is sustainable, harmonious, cost-effective, secure, friendly, and pragmatic.
CashFi (CFI) is a new next-gen decentralized platform with plans to build collaboration and connection by introducing its users to a variety of asset classes like liquid staking and NFTs. Its native token is CFI, an ERC20 token. The crypto project will run on the Proof of Stake (PoS) consensus mechanism.
Its chief staking mechanisms make it appealing to investors as it can generate additional crypto, essentially passive income. The platform has plans to bring Proof-of-Stake (PoS) assets currencies into the DeFi ecosystem with the potential for a high market valuation and market cap not long after launch.
These applications will incorporate liquidity provisioning for decentralized exchanges (DEXs) and the facilitation of borrowing. Staking has become widespread as the PoS system has become more popular and better than the PoW system. CashFi
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