Topic: ■|ANN|▌XVP |▌• VirtacoinPLUS • X11 • POW|POS • Stake Interest 7% • - page 129. (Read 148582 times)

XVP propose a new protocol for a cryptocurrency, by combining its Proof of Work component with a Proof of Stake type of system. XVP’s Proof of Activity protocol offers good security and has a relatively low penalty in terms of network governance and storage space.
XVP is trying to take the strengths and weaknesses of both Proof of Work and Proof of Stake and by combining these two mechanisms for consensus, it can wash out the weaknesses and pick up all of the gains.

In the case of Proof of Work, one of the major shortcomings is that if somebody can fabricate integrated circuits, way more cheaply and efficiently than us, they can effectively take over the network. So the consensus algorithm in the pure "Proof of Work Network" can be taken over by the people who fabricate these circuits. That has happened in Bitcoin and the vast majority of hash power coins. Is not that is only based in China, but it's owned by Chinese individuals and corporations and that process is counterproductive. The idea with a consensus algorithm is you want everybody to participate in some way. Maybe not everybody adds the same thing to the network, but just having everyone in one country take it over is really counterproductive and it makes for a crappy consensus algorithm.

In the case of Proof of Stake, the major shortcoming is that it's kind of feudalism, like if you own 10% of the coins when project starts, you're always gonna own 10% of the income from the subsidy, so XVP wanted to wash out the feudalism a bit, but can still have the meritocracy component of Proof of Work.

What is this really all about? Is about creating a fairer game. What attracted people to Bitcoin was that it created a fairer game, fairer than Fiat Financial System: you can't have your account confiscated, people can't stop you from sending transactions and no either central bank or nation-state government can arbitrarily inflate that value away.
What XVP carries above is the Proof of Activity (PoA). PoA combines the Proof of Work and Proof of Stake protocols, which means that participants can mine or lay down a share to validate the blocks. So XVP protocol provides a balance between the miners and the ordinary members of the network. Also, worth it a hybrid system, both in terms of scalability and security.
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A classic PoW model favors entities with access to cheap electricity and the capital to invest in mining infrastructure. This model is subject to mining centralization and the 51% attack, where a miner or pool with more than half of the hash rate can control the blockchain and the transactions.

A classic PoS model favors early adopters who accumulated coins, typically during an initial distribution. The benefits of PoS include decreased infrastructure costs as well as the ability for any user to directly participate in the network. With a PoS-based blockchain, the network is maintained by validators who routinely lock up funds on their wallets in what is called 'staking'. The more coins the validators lock up, the more blocks they can create, meaning they can reap more rewards. PoS only blockchains are subject to stake grinding vulnerabilities, which effectively allows a majority PoS miner to control the blockchain.

The hybrid consensus system in XVP network attempts to reduce the vulnerabilities of both PoW and PoS. PoW miners create the blockchain and earn the block reward. PoS stakeholders earn a portion of the block reward on whether a block is permanently added to the blockchain. VirtacoinPlus is definitely a fairer crypto-game!