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The First Proof of Stake Bitcoin: Bitcoin PoS

The First Proof of Stake Bitcoin: Bitcoin PoS

Even though cryptocurrencies have opened a new avenue for financial transactions, they are facing a lot of challenges because of scalability issues, vulnerabilities, and other code limitations. This is why a new coin has been created: Bitcoin PoS.

About BitcoinPoS

Bitcoin Proof of Stake (BTP) is a recently launched cryptocurrency that seeks to improve the Bitcoin core code through the introduction of a Proof of Stake consensus model.

As the Bitcoin core is Proof of Work system, new coins are introduced into the market by mining, a process that involves validating new transactions by solving complex mathematical equations. But the PoW consensus has its drawbacks, such as resistance to scalability, propensity for centralization, costly mining, and high energy requirements.

To improve on the best parts the Bitcoin code has to offer, Proof of Stake has been introduced to make a new coin.

What Kind of PoS Is Used?

There are different types of Proof of Work consensus models, but in order to completely reduce to a minimum the possibility of an attack on the Bitcoin PoS blockchain, Mutualized Proof of Stake consensus has been used in BTP. MPoS makes it virtually impossible for attackers to breach the security of the network, as it would demand too many resources.

How Is the Coin Supply Managed?

BitcoinPoS has a limited supply of coins, restricted to 21 million BTP. New coins are issued via staking (holding coins in an open wallet) with the block reward being reduced by 25% every 700k blocks, approximately every 4 years. Bitcoin reduces its block reward also every 4 years, but with 50%.

What Advantages Does BitcoinPoS Have to Offer?

Improved Decentralization

PoS systems work on a different principle than PoW, as the staking process requires less energy and competition than mining. This way, stakers, or validators, can generate new BTPs without having to invest in expensive mining rigs. With Bitcoin, most people cannot afford ASIC rigs, and, therefore, mining is now mostly done by big mining farms owned by companies. As anyone can stake, more users will be able to join the network, making it a truly decentralized crypto.

Better Network Security

The dreaded 51% attack allows one entity to have absolute control over the entire network if he/she has managed to acquire 51% of the network hashrate. The entity can then manipulate transactions anyway he likes, such as deleting them, double-spending, and stop them from being added to new blocks.

PoW systems can easily become centralized through mining. But through a PoS system, Bitcoin’s network can withstand 51% attacks, as the infrastructure favors decentralization. To execute an attack on Bitcoin PoS, the attacker would have to own at least 50% of the network’s token supply.

Less Energy Demanding

As new Bitcoin PoS are created through staking, this greatly reduces the energy consumption, which is 99% less than the energy required to mine Bitcoin.

Greener Technology

Proof of Work mining has been shown to negatively impact the environment, as a lot of energy and complex equipment is needed to solve the algorithm.

PoS is a simple and elegant solution that can make Bitcoin more eco-friendly and decrease its carbon footprint.

Accessible to All Users

You do not need expensive mining rigs to stake Bitcoin PoS coins. The PoS model is computationally economical, meaning that stakers do not need to have complex hardware, as they can just use their laptop or desktop computer.

As you can notice, Bitcoin PoS brings many improvements to the original Bitcoin codebase through the introduction of a Proof of Stake consensus that can offer better decentralization and scalability.

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The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

Quick take

1 minute read

  • Vitalik Buterin, has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. 
  • The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. 

Vitalik Buterin, the co-founder of one of the biggest crypto projects in the industry known as Ethereum has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. He further said:

“TLDR: merge happens faster, PoS happens faster, you get your juicy 100k TPS faster.”

Over the years, the network for Ethereum has experienced some significant rounds of high congestion. Three years ago in 2017, the popular CryptoKitties game slowed down the network massively but with the decentralised finance space growing rapidly, the network has been seriously clogged up.

As a result of this, it has led to high fees and longer than average confirmation times.

With Ethereum 2.0 very much just around the corner, there is a significant scaling upgrade solution that is supposedly going to speed up the network rapidly. This will increase the number of transactions per second and it will also move the blockchain to a different consensus algorithm known as a proof of stake. Phase 0 for the upgrade is set to occur on the 1st of December in two weeks!

The co-founder further went on to say that “all of these changes are designed to decrease the time until eth2 becomes useful to people.” 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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The second richest man in Mexico invest 10% of his portfolio into BTC

The second richest man in Mexico invest 10% of his portfolio into BTC

Quick take

1 minute read

  • Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. 
  • It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. 

Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. This came after he shared a video throwing huge amounts of paper money into the garbage. Not only does it show how worthless the government-issued cash is in today’s world but it also shows how important digital assets such as bitcoin could become.

Furthermore, the video indicates the hyperinflation and how bad it got in Venezuela.

Ricardo is worth more than $11 billion at the time of writing and is the only billionaire from Mexico who seems to have benefited from the coronavirus pandemic and the economic crisis that has come as a result.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Quick Take

1 minute read

  • Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. 
  • It was announced last week that Fred would be joining the board following a recent round of funding.

Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. It was announced last week that Fred would be joining the board following a recent round of funding.

The co-founder of the well-known crypto platform is getting ready to join the company as a board member following a $30 million funding ground to help expand its operations on an international level.

Throughout 2020, Fireblocks has launched a secure asset transfer network which would allow more institutions to efficiently transfer assets on chain. And on top of this, the platform also announced that it has seen more than $150 billion in transferred assets over the course of the past year. Fred has said:

“Fireblocks has become the go-to for any business looking to build new digital asset operations or scale existing ones… The extraordinary growth of the Fireblocks Network and its team in the last year attests to the enormous value they have unlocked for enterprise and institutional customers.”

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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XRP Price Analysis: XRP Continues Correcting

XRP Price Analysis: XRP Continues Correcting

This analysis brought to you by RoboForex.

On Friday, November 27th, XRP has reached stability but is still correcting and trading at $0.5550.

As we can see in the daily chart, after finishing a quick rising wave, XRP/USD price is correcting to the downside. At the moment, the asset is trading close to 61.8% fibo, a breakout of which will indicate further pullback towards 50.0% fibo. The MACD histogram has broken 0 and is still moving to the upside – it may be another signal in favor of a new rising impulse. The upside target of the completion of the correction will be at 0.6800.

In the H4 chart, the cryptocurrency continues correcting to the downside. Right now, it is testing the support level, a breakout of which will result in further decline towards 50.0% fibo. The Stochastic indicator has formed a “Black cross” inside the “overbought area” and is still falling, which is an additional signal in favor of further decline towards 50.0% fibo. After completing the correction, the asset may test and break 61.8% fibo, and then continue trading upwards. The upside target is similar to the daily chart, 0.6800.

Ripple started its rally on November 20th, together with other cryptocurrencies. There are a lot of explanations of why it happened, from investors’ search for alternatives to fiat instruments to a surge in interest in cryptoassets from institutional players. Indeed, all of this really took place and, of course, expansion of the interest was in favor of cryptocurrencies. The entire market is on the rise but since “trees don’t grow sky-high”, active purchases faded to the correction.

Over this period of time, XRP has managed to update its high reached in May 2018. The asset is still moving like 80% below the highs of January 2018, when it was trading at $3.7, but investors are surely positive about further growth.

At the moment, XRP is back to third place in the list of the strongest and most popular cryptoassets.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

 

Disclaimer

Any predictions contained herein are based on the author's particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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