We’re excited to announce that BTCBAM’s mainnet will transition to a Proof of Stake (PoS) network on July 12th, 2021 at 1 pm GMT!
Firstly, POS consensus is a type of consensus mechanism used by blockchain networks to achieve distributed consensus. It requires users to stake their BTCBAM Coins to become a validator in the network. Validators are responsible for the same thing as miners in proof-of-work: ordering transactions and creating new blocks so that all nodes can agree on the state of the network.
- The more coins you stake, the more you can vote
In a proof of stake system, staking serves a similar function to proof of work’s mining, in that it’s the process by which a network participant gets selected to add the latest batch of transactions to the blockchain and earn some crypto in exchange. The network selects a winner based on the amount of crypto each validator has in the pool and the length of time they’ve had it there — literally rewarding the most invested participants. Once the winner has validated the latest block of transactions, other validators can attest that the block is accurate. When a threshold number of attestations have been made, the network updates the blockchain. All participating validators receive a reward in the native cryptocurrency, which is generally distributed by the network in proportion to each validator’s stake.
BTCBAM Coin can no longer be mined in the usual way. However, you can still mine by what is called Staking. This also serves to secure the network and aid in the various transactions made for all BTCBAM users. Staking will earn you the total amount of coins held in your wallet over the period of a year and will start as soon as you have unlocked your wallet.
Once you start to Stake, you will notice that a certain amount of coins will be placed into your Stake balance (you can see this under the Overview tab on your wallet) and those coins will begin to stake. The more coins you have, the more coins you will earn by Staking.