Let’s learn more about the Proof of Stake

Steps of Proof of Stake

· What Is the Difference Between Proof of Work and Proof of Stake?

Proof of Stake (POS) was created as an alternative to Proof of Work (POW), which is the original consensus algorithm in Bitcoin Blockchain, used to confirm transactions and add new blocks to the chain.

· Is Proof of Stake Secure?

Proof of Stake (POS) is seen as less risky in terms of the potential for miners to attack the network, as it structures compensation in a way that makes an attack less advantageous for the miner.

· Advantages of POS:

1. The ecological advantage is considered to be the main advantage, which means that there is no need to consume huge amounts of electricity to secure the Blockchain, but this is not the only one. Given the low energy consumption, there is no need to strongly compensate network users for creating new tokens.

2. The risks of centralization are reduced because the reward is proportional to the number of assets in deposit in each custody. It means that each user can buy the equipment they need based on their work. Participation tests admit to finding better mechanisms than the same work test, to discourage the formation of decentralized posters, that is the formation of posters or actors that want to damage or harm the network.

3. In a PoS algorithm, a staker has the need to acquire tokens in order to validate blocks, this puts upward pressure looking for sellers, and having no costs to cover, does not seek to sell to have to pay. With PoS it is not necessary to have powerful computer equipment, the costs are reduced and there is no pressure on the price. Likewise, there is no known case in which there has been a 51% attack on a PoS system. It is based on the assumption that whoever owns the most coins has a greater interest in the survival and proper functioning of the network.

To get started, there are some technical requirements that all validators must meet:

1. 1 or 2 publicly accessible machines

2. At least 4 GB of RAM

3. At least 50 GB of HDD

4. Bandwidth of 10 Mbps over WAN

5. Some familiarity with provisioning machines (either cloud or on-prem) and some familiarity with Linux( Windows or MacBook ) command line is needed to run the provided scripts to generate keys and deploy your node.

If the technical requirements are met, candidates can start running their validator nodes by following the guideline;

· Firstly, to become a validator, all you need to do is run a full node that can be built from the link attached here: https://github.com/btcbamv2/btcbam . Then be sure that you have a full internet connection and you need to have a server. If you stay on the offline mode, without internet access, the Blockchain keeps running and the second you have a connection the network does the old nodes and after that, it starts to do the next actions you command.

Notice: These actions can not be used on mobile phones. To mine, you have to use a PC etc.

BtcBam is a Vienna-based cryptocurrency mining company managed by entrepreneurs and professionals.