The Proof of Stake model has been around since 2012, when it emerged as an alternative way to reach consensus on Bitcoin’s strong computational evidence. However, PoS is gaining momentum so far thanks to the launch of Staking on popular platforms including Ethereum 2.0, Polkadot and Cardano.
Despite the massive jump in prices since the start of the year and the fact that it is the second largest cryptocurrency by total market cap, Eth2 lags behind the competition in price ranking. So why not consider Ether (ETH) the first cryptocurrency?
Short story about effort proof
In 2012 Peercoin developers Sunny King and Scott Nadal proposed a PoS proposal as part of a hybrid consensus model. In 2013, the Nxt generation block welcomed the first blockchain, the remaining net worth, which Blackcoin quickly followed in early 2014. At the time, cryptography was still relatively appropriate, and the consensus model as a whole was not necessarily a contentious issue, it should have been back in the days. Good old. …
After Ethereum launched in 2015 and development activities quickly gained momentum, many projects wanted to replicate the success. However, Ethereum’s scalability issues due to its reliance on proof of work are quickly becoming a known problem. Therefore, large development groups have begun to explore other consensus models in an attempt to take a break from the work of their predecessors.
One type of stakeholder is Dan Larimer, invented by Dan Larimer. EOS, Tron (TRX), Lisk and more continue to use DPoS to this day. However, this model has been widely criticized for over-centralizing blockchain governance.
Launched in May 2018, Tezos (XTZ) has created a PoS consensus model that includes a mandate that overcomes some major DPoS compatibility issues such as EOS. A model called “Liquid Proof of Ownership” that allows XTZ owners to delegate their verification rights to other token holders. Confirm the contract, or Tezos network bakers can use the delegated funds as a contribution of at least 10,000 XTZs required to become a baker.
Liquid Proof of Ownership differs from DPoS such as EOS in that there is no fixed cap on the number of verification nodes that can participate in the network. Authorization is not a requirement for someone to become a baker on Tezos, whereas in the EOS model, a person can only become a producer on an authorization basis.
2020 – the strike
Tezos can be called one of the first platforms to promote staking and even realize the company’s stake in staking thanks to its partnership with Bitcoin Suisse. However, in 2020, there have been several major changes to blockchain point of sale that have opened up new revenue opportunities for cryptocurrency users.
In May, Polkadot was launched on the main network after years of development. Just a few weeks later, Cardano Shelley launched a home network iteration that speculators entered for the first time, although there have been no other vacancies yet.
It should be noted that each of these platforms has its own purpose and purpose. Ethereum lives up to its original vision of becoming a “world computer”, while Polkadot was designed with interoperability and economic scalability in mind. Cardano is proud of its peer-reviewed R&D base.
However, the common denominator for them is that they are all PoS platforms and all publishing features launched in 2020. Currently, they all also represent the best publishing platforms, with Ethereum at number five and just as important as Algorand. Avalanche Avalanche is third, ahead of Algorand, but offers exclusive value closer to Cardano and Polkadot than Algorand and Ethereum.
Arthur Brittman, one of Tezos’s early architects and a supporter of state validation, told Cointelegraph that while PoS takes time to get certified, he believes PoS is overshadowed by the benefits it provides:
“Proof of Stake has gone from being a simple idea in the cryptocurrency circles to being quite mainstream with the launch of Tezos in 2018 and with major companies like Coinbase at Staking. Meanwhile, coordinated attacks on smaller Proof of Work chains and the inflation associated with larger chains have been eliminated. New to the business is that Proof of Work is no longer suitable for opening cryptocurrencies.