PoW (Proof of Work) and PoS (Proof of Stake) are to term in the Crypto Space, you should definitely remember. But what exactly are the differences and how can PoS be used as an investment opportunity?
PoS – Proof of Stake
Proof of Stake or short “PoS” is a consensus algorithm for Blockchain Networks that is based on randomly chosen validators. These validators “stake” the network’s token to build and validate new blocks. They are getting their reward based on their stake. In PoS there are no classical miners like in PoW (Proof of Work). This can have a couple advantages, for example the minimization of power consumption. The high power consumption is not given because the computing effort is much lower. This results in lower power consumption which makes PoS more evironmentally friendly.
PoW – Proof of Work
PoW or Proof of Work is commonly understood as Crypto Mining. It literally means that you have to proof that some kind of work has been done. This work is the process of verifying blocks in the blockchain. Simply said, the digital currency is created by solving complex riddles. These riddles are calculated by a computer, the mining hardware. All transactions are being collected in blocks and saved on the public blockchain. This type of mining is using a lot of energy and ressources but is also very safe. High-performing graphic cards are often used for that.
PoS and StakeCube (Masternodes)
Success doesn’t come from nothing, strong partners and methods are a must in the crypto space! Especially with staking it is necessary to be able to fall back on the right means. Our partner StakeCube offers an integrated Masternode Hosting System with rewards and all the important information, as well as automatic updates. StakeCube’s system doesn’t require a huge technical knowledge because it has fully automated processes. StakeCube’s rented Masternodes offer diverse App Features with regular rewards which are more frequent than regular staking.
The price-performance-ratio of their shared Masternodes is a very strong offer, with which you are able to participate in a Masternode for a fration of the costs.
How does a Masternode work?
Finally, let’s talk about how a masternode is operating. Due to the rising popularity of this topic we are offering you a beginner friendly explanation on which you can build to learn more about Masternodes, PoS, PoW and Crypto in general.
Just as with regular Proof of Stake, Masternodes are based on staking a currency. Therefore you have to buy a larger amount of the specific cryptocurrency to establish a working masternode. Simplified, a masternodes purpose is to allow for the integrity of the currency network in which transaktions are being done. The owners wallet is working as a host for this node to which rewards are being credited.
PoS and PoW are both very important terms in our crypto space. But still there are often large discussion about those algorithms. Which is the better or safer version?
In our opinion: For investors this shouldn’t be relevant because you can always invest in both variations and use the competition for your own gains. As always, it is important to not put everything on one card.
To find the right investments it is important to have a trustworthy partner. This is where MeaTec come to play. With our partnership with StakeCube we are complementing each other and are able to bring you a wide spectrum of investment possibilities. Especially Crypto beginners can have a very nice entry point in the topic due to our and StakeCube’s focus on customer service.
From Monday, April 27th, you are able to rent shares of PoW Miners from StakeCube. This way it is very easy for you to combine PoW Mining and Masternodes.
If you would like to learn mora about mining and Cryptocurrencies, visit our MeaTec Forums.