This is a sponsored post
The recent attacks on Verge (XVG) and bitcoin gold have exposed the vulnerabilities of proof-of-work mining system, especially for low hash rate coins. These two coins were successfully compromised after the attacker gained more than 51% of the mining power. The 51% attack is the biggest vulnerability that proof-of-work coins face. You are probably thinking, this can only affect small coins like Bitcoin gold (BTG), right? Well, with the high centralization of mining power in the hands of a few players, there is no reason why it would be impossible to successfully attack a coin like bitcoin. That’s why it is becoming increasingly clear that the future of crypto mining rests in the prove-of-stake mining algorithm.
The prove-of-stake mining algorithm works by allowing people who have a significant holding in a coin to validate block transactions. One of the biggest benefits of prove-of-stake mining is that it makes it impossible to override a network like it happened with bitcoin gold. That’s because for someone to take control of the network, they would have to be in control of more than half of the network’s total market cap. Even if someone were to take control of more than half of the number of coins in circulation, it would not be in their best interest to do anything negative because a price collapse would severely affect their investments. Just to give you an idea of how secure the prove-of-stake system is, to attack a coin like Ethereum once it shifts to Prove-of-Stake, it would require more than $10 billion. There is Hardly anyone in this world who would be willing to blow $10 billion in a move that is guaranteed be self-destructive. That’s why the Ethereum team has been working tirelessly on turning Ethereum into a prove-of-stake coin.
But it’s not just the big coins that are secure under the prove-of-stake mining algorithm, even the smaller coins are highly secure. Take a prove-of-stake coin like XinFin for example, this coin has a market cap of $17.6 million. If someone were to attack it, they would have to stake at least $8 million. While this is not a huge amount, the person making the attack would have to be ready to waste it all, a scenario that is highly unlikely. In short, there is no incentive for such a move. People attacking coins like Bitcoin gold (BTG) do so with a profit motive, and prove-of-stake completely eliminates that motive.
Besides, prove-of-stake is extremely energy efficient. One of the biggest challenges to bitcoin mining is the amount of energy required to generate new coins. At the moment, the amount of power required to mine bitcoin is enough to power a small country. That’s not a tenable system in the long-run. The future lies in prove-of-stake coins like XinFin, NEO and Ethereum once it makes the transition. This system is not only efficient, but also give stakers a nice and easy way to earn a passive income. It’s simply the best and most practical mining algorithm out there!
The content within this press release was provided by the organization referenced. usaCommerce is not endorsing and is not responsible for or liable for any content, products, accuracy, advertising, quality or other materials found on this page. Readers are advised to perform their own research before executing any actions related to this company.