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The Advantages and Disadvantages of Proof of Stake (PoS)

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Recently there was a thread on the forum about staking coins.  While that thread was a little confusing in part, it's important to understand that staking, using a mining system based on your "stake" of coins, that is, how many coins you have, rather than computations as in proof of work that Bitcoin uses, is becoming more common.  The attractiveness of this approach is obvious, the more coins you have means you get more coins, building in a reason to hold coins!   (Note that in this situation stake has nothing to do with our beloved Stake.)

I was familiar with it because of Clams that are used as the only currency on another leading site, but Cardano, Dash and Qtum are using proof of stake and another three EOS, Lisk and Tron use a modified form of proof of stake.  More dramatically, Ethereum is planning to switch over to proof of stake at some point.

The article linked below was interesting because it points out that proof of stake can be facilitated by large parties staking on behalf of their members,  Another leading site offers EXACTLY this service for Clam holders, and take a large fee.  This of course is pretty much what banks do in the mundane world.  This of course, takes crypto further away from "be your own bank" since a scam or failure is inevitable and then will invite more regulation.

Anyway, since I never had much luck mining, though I did do some back in the day on the easy to use site Bitminter, I've been a fan of Proof of Stake, I think I still am!

I wonder what will happen when ETH finishes its shift of PoS, if Stake will give us our "stakes" from it?  Who knows, it might even create a situation where they can offer negative house edge games or something, knowing that they can profit from coins on deposit rather than having to have a house edge.  I doubt that will ever happen, but it's fun to think about!

Article on PoS and banking:  https://www.coindesk.com/proof-of-stake-could-lead-to-crypto-banking-lets-avoid-that

Recent forum thread on staking:  

 

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Interesting.. i had no idea this a thing.. i never really looked too much into the mining stuff and the way things worked.. just went with the basics only knowing that cryptos can be mined.. all the other details didnt really come to mind or the curiousity on finding out.. i only really started using crypto or even got involved with the crypto-verse (yes it sounds cool xD) till much later from when it first came to existence.. which was around april of last year in 2018.. now that im more invested in it, money and time, i should really take time into researching and learning more on its fundamentals and which are associated with using crypto or mining crypto.. its just really intimidating since i can only guess that theres is alot of things to learn involving crypto.. yikes.. xD

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Well good to hear you are a proof of Staker :) . I am sure that everyone here have gone through POS'ing at least once in their lifetime . Also thanks on the tip of sites that allow POS by investing small coins i have found one big one https://stakeminers.com/ i am not sure whether it works well but i am gonna give it a try :) 

Edit : They aren't accepting any new members 

Edited by Kate

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