You might have heard about Ethereum, and how they are looking to possibly make a switch from the Proof of Work protocol (which is what bitcoin and the majority of cryptocurrencies rely on) to Proof of Stake. Well, Did you know that PIVX already IS Proof of Stake? So why does this matter?
Remember, you need some method or some type of protocol to verify transactions and create the cryptocurrency (reward) for the validation of transactions. In Proof of Work (PoW), Miners (folks using an increasing amount of computer power) validate transactions and are rewarded for this (block reward). It becomes a giant competition where more and more power (literally, energy consumed via increased computer power) to outcompete other smaller “miners”. So much so, that the energy required to run the current Bitcoin and Ethereum blockchains would require at least a single nuclear power plant running at full capacity.
Think about that: It takes an entire nuclear power plant to run their ecosystems. That’s not very energy efficient.
ALSO: The MINERS are the ones controlling the blockchain. If you are not mining, then you really have no say in the currency or direction it’s going, as the miners (through their mining power) control the entire network.
SO WHAT IS PROOF OF STAKE IN PIVX?
With PIVX: it’s a consensus community that validates the transactions. Only our community members run the currency, not some miners. Every member who has the PIVX wallet is running the full blockchain, and with at least 1 PIV, they can “stake.” This securing the blockchain and participation in validating the transactions means you are eligible to receive the block reward (which is distributed randomly among every community member who was active in validating the transactions for that block). What does this mean?
It means that in PIVX, you truly are in control of the technology, the cryptocurrency, the blockchain. Since YOU are securing the network, you are TRUELY in control of the currency. ALSO, since it’s community consensus (not competition), it means we require a FRACTION of the energy. Literally, a few solar panels on roofs can power the ENTIRE PIVX NETWORK. How’s that for efficiency and sustainability?!
Lastly: What about Network security from outside attacks (Which some people use as a weak/unfounded argument against Proof of Stake)?
With PIVX, it’s actually a 99.8% attack to control and double spend PIVX. You would have to have 70.7% ownership of all the coins (that would be around 37 million PIV) to have 50/50 odds of just corrupting 1 block. And you have to successfully corrupt a block 101 times consecutively in a row or both double spends get orphaned. How’s that for a ridiculous unlikelihood of ANYONE or any GROUP, being able to nefariously control the network. How’s THAT for security?
So, in conclusion:
- Mining means someone else controls your Currency unless you are a miner yourself.
- Any limitation on who Runs the Blockchain means someone else controls your Currency.
- Any limitation on who is allowed to Validate and be Paid to Validate, means someone else controls your Currency.
- PIVX is more secure (less susceptible) to attacks and nefarious control than other cryptocurrencies.
- THIS is why PIVX, is uniquely positioned to be the maximumly globally distributed reserve currency. We are TRULY decentralized, and you are TRUELY in control of your OWN currency with PIVX.