On the EDC blockchain platform, the hybrid LPoS algorithm (Leased Proof-of-Stake), i.e, “leased proof of ownership interest”, works. This consensus mechanism has its significant advantages: for example, it attracts all users, regardless of their stack, to work on protecting and securing the network, and distributes the reward fairly, as each participant receives their share in proportion to the contribution. This is an excellent opportunity even for owners of a small number of coins to get bonuses. The essence of the algorithm is that owners of smaller amounts of cryptocurrency rent their coins to full-fledged nodes, while the nodes form a block, therefore, the owners receive their share of the total reward. This principle is similar to mining pools, which now serve almost the entire Bitcoin network. Due to the initiation and stimulation of network members with smaller amounts, the level of its security is also increased. The EDC blockchain platform is one of the few pioneers which is switching its mining algorithm to the LPoS algorithm. All coin holders are merged into masternodes.
So, if I understand correctly, users can stake their coin to masternode candidates without launch a node. Right? But this is the same method which are using in DPOS system. And this is using a long time ago (the first blockchain was EOS as I know, who used this system).
Masternode is a certain kind of fund in which users donate their coins, thereby allowing the node to mine EDC. In order for a node to become a masternode, you need to collect a certain amount of coins on it, which will be captured for a certain period of time to start a mining process to create new coins. What does this look like? Masternode is a networked computer with an EDC wallet running on it that captures the number of coins and provides network security when implementing important functions, such as instant confirmation of InstantSend transactions, as well as ensuring network voting. Thus, the first masternode is formed and is accepted for leasing. Coins are captured for different periods of time – starting from 3 up to 12 months, respectively, there will be different fees released depending on the number of coins in leasing and depending on the lease term. Thus, everyone can organize their own pool and become a holder of masternode. Especially for our users, we are providing the opportunity to lease several sets of coins for different terms. We make the mining process as easy as possible: if you lease coins, you do not need to keep your personal account open and conduct a daily transaction. You will automatically receive daily accruals on your EDC wallet and you can freely dispose of these coins.