Pos mining new coins. What awaits Ethereum in the new PoS algorithm and when will it happen. Coins for POS mining

Details Published: 02/08/2016 05:49

Many miners do not like PoS mining cryptocurrencies, as many of these coins tend to have a short lifespan, and PoS mining is generally considered a waste of time and money. However, there are some coins that have been able to stand the test of time and not fall into oblivion. Some of these coins may be an interesting investment option, buying them now and selling them when the price appreciates over time. We have compiled a small list of some of these cryptocurrencies, collected some information about them and links to the official threads of the bitcointalk forum.

First of all, we paid attention to coins with an annual interest rate above 1%. With a smaller bet per year, you can only hope to make any serious profit if the value of the coin increases. When choosing cryptocurrencies with Proof of Stake mining, you should first pay attention to cryptocurrencies with a high interest rate, which start at 5% per year. But be careful PoS coins, which have too high annual rates, as a rule, are not good choice. Another thing that is definitely worth paying attention to is the activity and size of the community of the chosen cryptocurrency, as well as that the coin is traded in decent volumes on the Poloniex and Bittrex exchanges.

Check out our list of cryptocurrencies below that we think are worth considering if you're interested in investing:

List of current PoS cryptocurrencies:

1. BlackCoin (BLC\BC)- V this moment PoS mining only, fixed reward 1.5 BLK + reward for processed transactions, traded on the Bittrex and Poloniex exchanges in fairly large volumes, supported by an active community.
2. CoinMagi(XMG)- M7M PoW and PoS mining, 5% annual PoS commission, traded on the Bittrex and Poloniex exchanges in small volumes, supported by an active community.
3. Diamond (DMD)- Diamond-Groestl PoW mining, 25% per year PoS mining, traded on the Bittrex exchange, supported by an active community.
4. MintCoin (MINT)- at the moment only PoS mining, 10% per year PoS mining (in the future it will be reduced to 5%), traded on the Poloniex exchange in fairly large volumes, supported by an active community.
5. OKCash (OK)- at the moment only PoS mining, 20% per year PoS mining (in the future it will be reduced to 6%), traded on the Bittrex exchange in small volumes, small community.
6. HyperStake (HYP)- currently only PoS mining up to 750% per year, traded on the Poloniex exchange in small volumes, active community.
7. Hyper (HYPER)- currently only PoS mining, 5% per month PoS mining (in the future it will be reduced to 2%), traded on the Bittrex exchange in small volumes, active community.

Pos mining allows you to mine cryptocurrency without purchasing expensive equipment or having technical training. Simply put, money makes money! This is a real example of how the saying came true.

Now you don’t need to monitor exchange markets and look after expensive equipment worth tens of thousands of dollars, but let’s talk about everything in order.

What is pos-mining and how does it work

First use of the protocol pos-mining started in 2011. The idea generally arose in a discussion on one Western forum dedicated to cryptocurrency and a few months later, it was implemented.

The first coin to support posmining was PPCoin, later renamed PeerCoin. At the moment, the technology is supported by several other coins.

How does pos mining work? In simple words, this is an accumulation of your coins in your wallet. If you buy several coins, say the same PeerCoin, and block them for mining (leave them in your wallet), then you are awarded a percentage daily (depending on the amount).

Coins are needed for a number of tasks, for example, opening an ICO based on this coin. But all coins remain in your wallet and at any time you can stop mining coins by canceling the operation.

For the holder of coins who gave them to pos mining there is a designation - holder. That is, you artificially block your coins during mining. But there is one more important detail: the wallet must be constantly open and online.

What are the advantages of pos mining? First of all, you do not need to purchase, the whole process takes place only in your wallet. Accordingly, energy costs also disappear. All your investments always work for you, and if you hold the coin until its price rises, then at that time it will earn you new altcoins.

Most often, accruals occur after 30 days after the money was deposited. But an important point is that these 30 days also participate in the calculation of profits! Essentially, you hold coins like in a bank - at interest.

Lifehack from NewCripto: To increase profitability, create several virtual deposits with an equal number of coins.

How to make money on pos mining, where to start

PoS is used in cryptocurrencies:

• on the SHA256 algorithm: Nxt (NXT);
• on the Scrypt algorithm: Gridcoin; BlackCoin

So, let's move on to preparation:

• Select a currency for pos mining
• You need to create a wallet
• Buy altcoins on the exchange
• Pre-preparing the wallet for about 24 hours (it must be turned on until it generates the required number of blocks)
• Wallet activation

This is where the preparation ends, money will make money. Income will depend on two factors, the first is income from production, the second is the exchange rate on exchanges.

Lifehack from NewCripto: register a server (for example on Amazon), install all the necessary wallets for pos mining on it. It is advisable to have as many coin options as possible, since it is unknown which of them will break through to the top. Throw in coins and mining will go on 24/7

Cryptocurrencies that support pos mining

At the moment we provide list of coins profitable and available for pos-mining. Which ones are profitable to buy and how much they cost, you can always look at coinmarketcap.com, just go to the site and enter the name of the desired coin in the search field, and you can buy them.

Also, by going to the details of the coin, you can see its changes in price for the entire period, go to the website and see the development plan. On the “markets” tab you can find out on which exchanges this coin is traded.

• LEOcoin (LEO) - yield of 20% per annum with a maximum investment of 50,000 coins, traded on 5 exchanges
• ReddCoin (RDD) - yield 5% per annum, traded on 8 exchanges
• ClubCoin (CLUB) - yield 20% per annum, traded on 2 exchanges
• NovaCoin (NVC) - 100% annual yield, traded on 8 exchanges
• BlackCoin (BLK/BC) - fixed remuneration for participation in equity financing 1.5 BLK + commissions depending on the time of participation, traded on 2 exchanges
• Diamond (DMD) - yield 25% per annum (then it will decrease), traded on 2 exchanges
• CoinMagi (XMG) - yield 5% per annum, traded on 2 exchanges
• Mintcoin (MINT) - yield 10% per annum (descending), traded on 5 exchanges
• OKCash (OK) - yield 20% per annum (decreasing), traded on 8 exchanges
• HyperStake (HYP) - yield 750% per annum, traded on 4 exchanges
• Hyper (HYPER) - yield 5% per annum, traded on 2 exchanges
• Quotient (XQN) - yield up to 1600% per annum, traded only on YoBit
• ZeitCoin (ZEIT) - yield 15% (descending), traded on 7 exchanges

Conclusions: is pos-mining of cryptocurrency profitable?

As we say in almost every article, investing is always associated with risk and there is no need to enter the market with borrowed money, invest only free cash! We are at an inflection point where virtually anyone can reach a significantly new level.

Let me give you a small example: I invested at the end of the 16th year in Waves coins for their subsequent leasing. I invested only 50 dollars and the price at that time was 0.17 cents, 300 coins came out. I leased them and now, less than a year later, their price reaches $5.50 (this is the maximum that I recorded). Having now sold the same 300 coins (although in fact there are now much more of them), I will receive 1650 dollars!!!

The terms Proof of Work and Proof of Stake remain a form of Chinese “character” for the general public. Most are not going to delve into their essence at all, even if they plan to invest in cryptocurrency or engage in trading in the future.

Understanding what Proof of Work (PoW) and Proof of Stake (PoS) is will help when evaluating a particular cryptocurrency. So at least basic information about them will not be superfluous for you. Perhaps this additional knowledge will even help you in the future.

What is Proof of Work and Proof of Stake

Literally, Proof of Work translates as “proof of work” or proof of work done. If we interpret this translation into the sphere of cryptocurrencies, then the computing operations of the equipment are taken into account here. Proof of Work is a kind of mechanism for checking that the work (aka calculation) was carried out.

It is the PoW principle that underlies the validation of transactions in the blockchain. This consensus algorithm is also used in dozens of other cryptocurrencies that have mining capabilities.

In contrast to Proof of Work, another mechanism was created - Proof of Stake. Literally, this term can be translated as proof of ownership share. If a cryptocurrency uses this consensus algorithm, then transaction validation occurs through network nodes. Roughly speaking, the more cryptocurrency a person has in his wallet, the more chances he has to find new block and confirm the authenticity of the transaction, also receiving a reward for this.

What is Proof of Work

The Proof of Work mechanism appeared even before conception. Its main goal is to protect the server from constant requests (DDOS attacks, spam) by adding a special task, the solution of which requires spending a certain amount of time and resources. In this case, the server (or simply the validator) will spend much less time on verification. The PoW mechanism is designed specifically for computing.

You can explain the principle of its operation using the example of a regular lesson at school. During a math lesson, the teacher gave a task to the whole class and promised a good grade (reward) to the one who completed it first. The student needs to “use his brain” in order to carry out a series of mathematical operations and ultimately solve the problem. In the case of PoW, the student is computer technology, the class is, for example, a Bitcoin network with miners, the student is one miner or a computer, “to brainstorm” means to spend effort or energy in the case of machines, and a good grade is This is the reward for mining.

This concept was first presented back in 1993 in a scientific article. The authors, Cynthia Dvor and Moni Naor, proposed making it so that access to some abstract resource appears only if a certain resource-intensive task is completed.

Three years later, Adam Back launched the Hashcash project, the main task of which was to protect against spam. He described the mechanism as follows: “You need to find a value of X such that the function SHA(x) would contain nth quantity zero bits."

And in 1999, the term Proof of Work first appeared - it was proposed by Marcus Jacobsen and Ari Juels in a scientific article for the journal Communications and Multimedia Security.

Back in 2004, Hal Finney, who would later conduct the first transaction in the history of the Bitcoin network, proposed “tokenizing” PoW, or rather RPoW (Reusable-Proofs-of-Work). That is, the result of the checks would be , which could later be used as electronic currency.

Well, then Satoshi Nakamoto took the initiative (took, took) into his own hands, introducing the Hashcash mechanism as a consensus algorithm into the Bitcoin network, and also introducing a hashing algorithm SHA-256. The PoW mechanism is used in the Bitcoin network to generate a block and secure everything. These blocks contain a hash function, the sum of which is always less than target. This seems to show or prove that the necessary calculations (work) to find the block have been made and gives a signal that the block can be recorded in the general chain (blockchain).

This whole process is random. That is, it is impossible to say which miner will ultimately find the signature. And even if he managed to do this, this does not mean that he will receive 12.5 BTC (the current reward for finding the block). All miners receive rewards that are proportional to their “effort” in computing. As for the difficulty level, it is recalculated every 2016 blocks mined (approximately 2 weeks). If miners managed to find a given number of blocks in less than 14 days, then it is difficult to increase; if it took more time, then it decreases.

What is Proof of Stake

But the Proof-of-Stake consensus mechanism is already a “cryptocurrency” brainchild. That is, this method of protection was invented purely for use in cryptocurrencies. By the way, this idea was proposed on the BitcoinTalk forum in 2011 by the user QuantumMechanic as an alternative to the Proof-of-Work used in the Bitcoin blockchain.

Already in 2012, the first PoS cryptocurrency appeared - . Although it used a “hybrid” algorithm. At first it was PoW - at the stage of the initial distribution of coins, and when they were all mined, the transition to PoS had already taken place. The first cryptocurrencies with a 100% Proof-of-Stake consensus mechanism are and.

In PoS, the share size (Stake) is used as a resource, which determines which node will ultimately find the block and receive the reward. To put it simply and very illiterately, here mining (extraction of new coins) occurs due to the presence of coins in the wallet, and the more there are, the higher the reward. The truth is not exactly mining, but forging. A node that receives a reward for holding a certain stake is also called a masternode.

The motivation for introducing Proof-of-Stake is as follows:

• This network consensus mechanism requires much less resources compared to proof of work;
• There cannot be a classic 51% attack in a PoS blockchain - since computing power does not play a role in ranking nodes;

• A potential attack can only happen if 51% of all coins are concentrated in the hands of one node - and this is very, very expensive;
• Even if an attack occurs, the operation of the blockchain will be disrupted and it will be difficult for the attacking party to benefit from it;
• In the long term, transaction fees on PoS networks are lower. In general, Proof-of-Stake seems to be a cheaper, simpler, and less resource-intensive algorithm. The benefits seem obvious.

Meanwhile, PoS also has an obvious drawback - a monopoly could potentially arise in the network when the Stake of one participant exceeds 51%. Although it is difficult to benefit from this in a destabilized blockchain, other participants may suffer damage.

Another problem is the potential for collusion among a group of nodes, which could lead to changes in the rules of the blockchain. That is, in PoS there is a certain problem of centralization.

Proof of Stake vs Proof of Work

Proof-of-Work and Proof-of-Stake do not have much in common. Unless they have own attack 51%, which ultimately leads to the collapse of the network.

In general, Proof-of-Stake seems to have a number of obvious advantages: faster validation speed, lower resource costs for protection, lower commissions.

But at the same time, attacking a network with the Proof of Work algorithm is virtually impossible - for this you need a super (many times) supercomputer and several power plants to service it.

In Proof-of-Stake, everything is structured in such a way that participants strive to capture as large a share of coins as possible in order to receive a larger commission reward. Because of this, centralization arises. But even if the destabilization of the network does not bring anything to the holders of the majority Stake, this consensus algorithm still has one drawback.

We are talking about a Nothing-at-Stake attack - this is when a chain of empty blocks is created by a group of users, which can ultimately lead to double spending, conflicting blockchain versions and an inevitable fork. The developers of the new Casper protocol, which will be introduced into the platform in the future, are working to eliminate this problem. There are no specifics yet: no transition date, no technical details. According to one version, participants will bet their shares on the platform in order to receive rewards - but this has not yet been confirmed. The creator of Ethereum, Vitalik Buterin, believes that the transition to PoS will help reduce fees and the overall cost of maintaining the network. And mining as such will have to be abandoned.

Both protocols have their advantages and disadvantages. It seems that Proof-of-Stake is more economically profitable and more rational from a technical point of view, but in such global platforms as the Bitcoin blockchain or other cryptocurrencies with a billion-dollar capitalization, PoW seems to be a more reliable option. Back in 2012-2013, coins with a hybrid PoS/PoW protocol began to appear on the market. Among them, and others.

Review of Proof of Work and Proof of Stake alternatives

With the rise of cryptocurrencies and ever-increasing developments in the blockchain field, algorithms other than proof-of-work and stake mechanisms have been proposed. Some of them have already been implemented in new cryptocurrencies, others only at the project stage.

Protocol name	The essence
Proof-of-Activity	A hybrid protocol between proof of work and proof of stake algorithm. The following scheme is usually used: at the initial stage, all coins are mined without recording transactions in the blockchain (PoW), and then PoS is used with masternodes. A classic example is cryptocurrency.
Proof of Delegated Stake	A modified version of POS in which delegation of share confirmation occurs. Network participants can choose which nodes will confirm transactions and vote on various decisions in the network. Applicable in .
Proof of Leased Stake	Can be translated as proof of leased share. This protocol is implemented in the platform. The bottom line is that in classic PoS, only nodes with a large stack can confirm transactions and receive rewards. In PoLS, participants with small shares can rent them to nodes and receive rewards too. The scheme is reminiscent of pools with regular mining.
Proof-of-Burn	This protocol uses coin burning. Participants send them to a special address, where they become inactive. In return, they receive the right to mine new coins. The protocol is used in .
Proof-of-Signature	PoSign is a completely new mechanism that has not even been fully developed yet. Used in cryptocurrency blockchain. The idea is that each of the statistical nodes of the network signs new blocks. If a node tries to carry out an attack, it will be blacklisted.
Proof-of-Capacity	Here, data storage space is used for proof. The more it is, the more you mine. Pioneer of PoC - cryptocurrency.
Proof-of-Brain	Sometimes this term is used to describe the operating principle of and. Here, for “mining,” participants need to create content, that is, turn on their brains.
Proof of Importance	Proof of importance is the cryptocurrency network's consensus algorithm. The importance is “calculated” as a combination of the current balance and the participant’s transaction activity.

Let's briefly summarize the material:

• Proof-of-Work and Proof-of-Stake are two of the most popular consensus protocols among cryptocurrency blockchains;
• PoW – proof of work, protection is provided through computational operations and hash search;
• PoS – proof of ownership of a share, validation is performed by nodes with active balances;
• PoW is generally more reliable, but requires much more resources, and in PoS systems there is centralization and proofs without a resource are possible;
• Increasingly, cryptocurrencies with hybrid protocols or completely new concepts of the consensus mechanism are emerging.

Several for beginners important points in simple language:

in pos mining, the principle of receiving new coins to your wallet is similar to the principle of making a profit from a bank deposit. To do this, you just need to keep the coins in your wallet and, according to the stated percentages, new coins will be sent to you at a certain frequency

Procedure or how to start

1. Search and selection of coins

2. Download the cold wallet of the selected coin from the developer’s website

3. Install a cold wallet on your computer, with synchronization of the wallet with the blockchain of the coin

4. Buying coins on a cryptocurrency exchange

5. Withdrawing coins from the exchange to your wallet

6. Holding coins (stacking) in your wallet. The wallet must always be online (online)

7. Receiving new coins to your wallet. The time of receiving and frequency of receiving coins will depend on several factors: the algorithm of the coin itself, the size of your deposit, the number of entries in your wallet, etc.

8. Fixing profit - withdrawing all or part of the profit to the stock exchange. On the exchange you sell your coins for BTC, USD or other cryptocurrency

IMPORTANT!!! You must understand and have a correct attitude towards calculating your profits, i.e. if a coin, for example, gives 100% profit, this does not mean that by investing 100 dollars you are guaranteed to receive another 100 bucks on top.

Real profitability in dollars or rubles in post-mining is a very floating concept and depends on many factors.

If the developers declare, for example, a profitability of 100%, this means that you will receive 100% of the profit in coins, and not in the dollars that you invested to purchase them = example: you bought 100 coins and put them on mining, then after a year get one hundred coins on top if the declared profit was 100% per annum. And now the most interesting thing - in a year these 200 coins can cost 50 bucks or 5000 bucks. In addition, it is not necessary to wait a year, because the price can rise or fall greatly at any time.

In general, this information is intended to warm up your interest in this topic. All the information about what pos mining is and where these damn percentages come from, how to use wallets, how to buy and sell, etc. I will post it in this section - stay tuned

My contacts for the fastest communication:

Telegram @MAKSimusBlogger or Skype

Blog news telegram channel @maksimusprofit

BLOG CHAT in the cart @maksimusblog

Ask any questions, I will always be happy to help you!

According to Vitalik Buterin, the creator of Ethereum, the PoW consensus mechanism is becoming a thing of the past, giving way to the more promising PoS. Market trends confirm his words, more and more cryptocurrencies use either a hybrid PoS+ PoW algorithm, or variations based on PoS, or PoS itself in pure form. What is the essence of this technology, and what kind of income can be obtained from it?

Creator of Ethereum.

PoS is an acronym that stands for Proof of Stake and is translated as “proof of ownership.”

The Ethereum network itself is transitioning to Proof of Stake smoothly, first introducing hybrid schemes. Currently it is not yet possible to receive Ethereum using Proof of Stake. It is unknown when exactly Ethereum will switch to Proof of Stake, but approximately this will happen at the end of 2018 – beginning of 2019.

This is a short excerpt from an interview with Buterin, where he talks about the prospects of mining using the PoW algorithm.

Newcomers, when they see Vitalik for the first time, react more with surprise than with enthusiasm, because they do not know what this man has done for the blockchain community, and how important Ether is for the profits of many, many thousands of miners, traders and developers of new cryptocurrencies. In short, Vitalik sets a trend; his ideas will be implemented by more and more cryptocurrency creators. This means that it is worth studying PoS technology and preparing for the fact that in the next 5-7 years, mining on video cards, processors or ASICs will fade into the background, and perhaps even become obsolete and irrelevant.

Characteristics and essence of PoS mining

Ethereum.

The first coin to use this consensus algorithm was Peercoin (PPC), released in 2012. It has a hybrid consensus, meaning it also has PoW.

Speaking in simple words, with Proof-of-Stake mining, mining new coins means receiving a reward for the positive balance of your wallet.

Yes, you don’t need to do anything, just buy cryptocurrency and then receive dividends. This kind of mining is also called forging or minting.

Mining PoS coins has the following features:

1. In most systems there is a minimum limit, for example, in Leocoin you need to have at least 1000 LEO in your wallet.
2. The age of the coin is also taken into account. Age is the period of existence of a monetary unit in the wallet of its owner. In most systems, you need to store and not spend money for about 30 days.
3. The reward is usually awarded for each block generated, there are several confirmations.
4. Transaction fees are usually fixed.

The reward is either fixed (rarely) or proportional to the wallet balance.

Difference from PoW and advantages

Comparison of consensus mechanisms.

There are several key differences between PoS and PoW.

The advantages of PoS mining include the following:

1. There is no need to spend money on expensive motherboards, top-end video cards, ASICs, etc. A regular computer is enough.
2. There is no need to allocate a separate room for the farm or assemble a rig.
3. No high energy costs.
4. The miner may not have special technical knowledge; the process of mining cryptocurrency is very simple.

PoS systems are well protected from attacks by intruders; without control over 51% of the total emission, it is impossible to influence the blockchain.

What coins can be mined only by POS mining?

Website Leocoin.org

Among the most profitable cryptocurrencies on PoS are the following.

Since PoS mining begins with the purchase of coins, it is worth understanding the exchanges in more detail.

ReddCoin can be purchased on the following trading platforms:

• Bittrex;
• Upbit;
• Cryptopia;
• Litebit.eu;
• Vebitcoin;
• YoBit;
• Bluetrade;
• TradeSatoshi;
• Bisq;
• Coinhouse.

LEOcoin is traded on the following exchanges:

• Livecoin;
• Bit-Z;
• LEOxChange;
• C-CEX.

Exchange LEOxChange.

ClubCoin is sold on the following trading platforms:

• Bittrex;
• YoBit;
• Litebit.eu.

You can buy NovaCoin on these exchanges:

• Livecoin;
• YoBit;
• C-CEX;
• Bluetrade;
• Cryptopia.

Considering the not very high rate of RDD, LEO, CLUB and NVC, you can start earning money with an investment of about 30,000 rubles.

How to start PoS mining, types of earnings

There are several types of PoS mining:

1. Solo, that is, working alone, turning on your computer.
2. Cryptocurrency mining through a pool, cloud mining. Several miners pool their capital to get more rewards and then distribute them among everyone. If you wish, you can do solo mining in cloud data centers, but this does not provide any advantages in PoS.
3. Receiving coins through so-called faucets or Faucet services. Everything is very simple here, you need to open the site and enter the captcha from time to time. The faucet will credit a certain amount of coins to the Faucet wallet linked to the site for free.

The downside of the latter method is that you can earn extremely little money from faucets; it’s simply not worth the time spent.

Solo mining is carried out according to the following principle:

1. You need to download the wallet from the official website.
2. Buy cryptocurrency on any of the mentioned exchanges.
3. Wait a day for synchronization.
4. Download the mining program and run the batch file (run.bat file).
5. Enter your wallet number in the body file.
6. Just keep the coins in your account for the time specified by the developers.

When mining through a pool, the difference is that you need to write down the pool number in the body file and register in the pool itself.

Cloud PoS via Poswallet

Home page poswallet.com.

The Poswallet wallet was created for cryptocurrencies with the PoS algorithm. It is not official, and no one can guarantee its 100% reliability.

The wallet combines 2 functions:

1. Online cryptocurrency storage, supports more than 40 altcoins.
2. Earning money from taps. Moreover, for some reason it is called “pool”, although there is no pool in the traditional sense.

When using taps, you need to consider the following nuances:

1. Green taps are active.
2. Red ones are removed.
3. Purple ones potentially work.
4. One tap can be used once every 24 hours.
5. Within 15 minutes you can open no more than 3 taps.

Service commission – 1%. It is important to be active regularly; if you do not update your wallet on time, it may be deleted or at least deprived of rewards. You can withdraw money to your personal wallet or to exchanges for selling and exchanging cryptocurrency. There is an internal exchange where you can buy PoSW tokens.

After watching this interesting video review, you can understand a little more about Poswallet.

Profitability

Coins that have a more or less high exchange rate impose a limit on PoS mining in the form of a minimum balance on the wallet for earnings. By doing this, they attract more serious investors and increase capitalization. The downside of working with such a cryptocurrency, for example with LEO, is that you first have to spend a certain amount of your money, and then this investment begins to pay off. And if the exchange rate drops, then you can go negative.

From this video you can learn about the most effective and secret methods of PoS mining, which are used by successful miners who manage to make a profit.

And this video will help you get a more realistic idea of ​​the profitability of PoS mining; the miner summarizes the results of the experiment.

In general, we can conclude that the profit from PoS mining will be small, but stable, if you choose the cryptocurrency well and sell it on time or withdraw it to low-volatility assets.