Topic: Knowledge of what to equip: What are POS, POW, DPOS and MASTERNODE? (Read 141 times)
March 07, 2018, 03:52:08 AM
Knowledge of what to equip: What are POS, POW, DPOS and MASTERNODE?
ICO is now largely to release tokens to the public. There are 2 types of tokens:
☘️Security Token: Encrypted Stocks. No country has issued a license to issue security tokens.
☘️Used token: represents the product / service of the company. I find many people still think the utility token is a corporate share, in fact it looks more like a voucher.
🔥Blockchain is a record of all data, transactions and anyone can open the window to see all information except identity.
Transactions will be validated, stored in blocks (until full will generate new blocks) and validators will receive the coin from the new block.
So how to become a validator and get more coin?
For Bitcoin, Ethereum and many other altcoin only support PoW, you can only become a validator if you join PoW.
1️⃣. Proof of Work - Proof of Work. As the name implies, you will have to "work" to be rewarded / paid. By providing machine + power of machine (strong or weak) + power to solve extremely complex algorithms. The more machines + the more powerful + the more electricity the algorithm will solve faster and more accurate. Then, the system will pick the best answer. The person who created this solution will become a validator and have the right to exploit the new block, confirming the transactions in that block.
This method has many weak points.
✔️It takes a lot of power + machinery to dig. And there are a lot of people who think that btc, eth, etc. is a technology breakthrough, but spending a lot of energy and machinery is too costly.
✔️ Miners will easily transfer to another coin if they feel the profits are different. This can cause sudden network congestion (if there is a large enough amount of miner to do so) and negatively affect the ecosystem.
✔️ The big minerals benefit the most because they only have a huge amount of power, they will find the answer right and faster, easy to create monopoly. Not to mention, if there is enough computing power, they can do things that are not right for the system, going against the will of the majority of coin holders.
2️⃣. Proof of Stake - Proof of Deposit.
In the PoS protocol, you will have to stake 1 coin to participate. That is, you prove you have spent a ton of money to stake (and you have more without losing a stake than another story). And the system will choose who will have the right to exploit the new block. Mine (coin) support Pow. For coin support, PoS is called mint.
You have coin, you stake (like hodl) and you will receive more coins over time (the coin value up or down is unknown, but the amount will increase).
Each project will have a different selection strategy based on many factors:
The most influential factor is still the amount of coin they are willing to spend to stake.
✔️In addition to the time factor, the longer the stake is likely to be exploited the higher the block.
✔️Choose random numbers on certain factors, etc.
However, the biggest weakness of PoS is that those who hold the most coins will benefit the most. If I own 60% of the total coin and stake, then I will be more profitable than other "sharks" a lot, not to mention the fry. So how to minimize this? Since this is decentralize, the power should be divided to as many people as possible - decentralized.
🔜🔜🔜Masternode: Understand is server. You can set up your computer to become a server (run 24/24) or hire a third party. This masternode will perform transactions in the network or provide other services (depending on the project). And to protect the network, those who want to operate the masternode need to stake a small amount of money.
A masternode will only hold a certain amount of coin. If I had 60% of the coin and wanted to stake it all, I would have to have at least a few masternodes to stake.
Having a project that requires 1 x specific coin stake can run masternode. There are re-packaged projects, depending on the amount of coin that will get higher or lower%.
Generally, in the PoS protocol, if you stake with a masternode you will:
Get more coin than regular stake.
✔️However, the number of coin needed is relatively large for small coinholders.
The solution for this is that there are quite a few retailers gathered together to run masternode. They will choose the most trusted person to manage the group masternode.
This is very risky if one day the captain "disappears". But the benefit is that it increases the apparent results.
🔜🔜🔜To DPoS
❎DPoS - Delegated Proof of Stake, Proof of Deposit. DPOs are a form of PoS, but instead of self-peculating or risk-setting masternode groups, coinholders only need to delegate their coin to a validator. And this validator will have your voting right. This helps the small coinholder still be able to join the masternode without worrying about losing the coin since the captain "disappears".
❎Follow your decision
ICO is now largely to release tokens to the public. There are 2 types of tokens:
☘️Security Token: Encrypted Stocks. No country has issued a license to issue security tokens.
☘️Used token: represents the product / service of the company. I find many people still think the utility token is a corporate share, in fact it looks more like a voucher.
🔥Blockchain is a record of all data, transactions and anyone can open the window to see all information except identity.
Transactions will be validated, stored in blocks (until full will generate new blocks) and validators will receive the coin from the new block.
So how to become a validator and get more coin?
For Bitcoin, Ethereum and many other altcoin only support PoW, you can only become a validator if you join PoW.
1️⃣. Proof of Work - Proof of Work. As the name implies, you will have to "work" to be rewarded / paid. By providing machine + power of machine (strong or weak) + power to solve extremely complex algorithms. The more machines + the more powerful + the more electricity the algorithm will solve faster and more accurate. Then, the system will pick the best answer. The person who created this solution will become a validator and have the right to exploit the new block, confirming the transactions in that block.
This method has many weak points.
✔️It takes a lot of power + machinery to dig. And there are a lot of people who think that btc, eth, etc. is a technology breakthrough, but spending a lot of energy and machinery is too costly.
✔️ Miners will easily transfer to another coin if they feel the profits are different. This can cause sudden network congestion (if there is a large enough amount of miner to do so) and negatively affect the ecosystem.
✔️ The big minerals benefit the most because they only have a huge amount of power, they will find the answer right and faster, easy to create monopoly. Not to mention, if there is enough computing power, they can do things that are not right for the system, going against the will of the majority of coin holders.
2️⃣. Proof of Stake - Proof of Deposit.
In the PoS protocol, you will have to stake 1 coin to participate. That is, you prove you have spent a ton of money to stake (and you have more without losing a stake than another story). And the system will choose who will have the right to exploit the new block. Mine (coin) support Pow. For coin support, PoS is called mint.
You have coin, you stake (like hodl) and you will receive more coins over time (the coin value up or down is unknown, but the amount will increase).
Each project will have a different selection strategy based on many factors:
The most influential factor is still the amount of coin they are willing to spend to stake.
✔️In addition to the time factor, the longer the stake is likely to be exploited the higher the block.
✔️Choose random numbers on certain factors, etc.
However, the biggest weakness of PoS is that those who hold the most coins will benefit the most. If I own 60% of the total coin and stake, then I will be more profitable than other "sharks" a lot, not to mention the fry. So how to minimize this? Since this is decentralize, the power should be divided to as many people as possible - decentralized.
🔜🔜🔜Masternode: Understand is server. You can set up your computer to become a server (run 24/24) or hire a third party. This masternode will perform transactions in the network or provide other services (depending on the project). And to protect the network, those who want to operate the masternode need to stake a small amount of money.
A masternode will only hold a certain amount of coin. If I had 60% of the coin and wanted to stake it all, I would have to have at least a few masternodes to stake.
Having a project that requires 1 x specific coin stake can run masternode. There are re-packaged projects, depending on the amount of coin that will get higher or lower%.
Generally, in the PoS protocol, if you stake with a masternode you will:
Get more coin than regular stake.
✔️However, the number of coin needed is relatively large for small coinholders.
The solution for this is that there are quite a few retailers gathered together to run masternode. They will choose the most trusted person to manage the group masternode.
This is very risky if one day the captain "disappears". But the benefit is that it increases the apparent results.
🔜🔜🔜To DPoS
❎DPoS - Delegated Proof of Stake, Proof of Deposit. DPOs are a form of PoS, but instead of self-peculating or risk-setting masternode groups, coinholders only need to delegate their coin to a validator. And this validator will have your voting right. This helps the small coinholder still be able to join the masternode without worrying about losing the coin since the captain "disappears".
❎Follow your decision
Jump to: