In this article we talk about some of the best cryptocurrencies that use the Proof of Stake (PoS) protocol.
Proof of Stake (PoS) is a recently proposed algorithm that allows reaching a distributed consensus with less computational effort than that required, for example, by Bitcoin.
The creator of a new block is chosen in a deterministic way, favouring the nodes with a higher value (stake). The consensus ultimately obtains the same effect as mining without the need to use large amounts of power and energy to perform the calculations.
Below are some of the best cryptocurrencies that use the PoS protocol.
NEO uses an optimised Proof of Stake system called Debianantine Fault Tolerance (dBFT).
The most interesting aspect of the NEO system is that users receive a different cryptocurrency as a reward for their service to the network.
To be specific, whenever a node finds a new block, NEO users get a share of 7 GAS. Travala, a well-known online booking site for hotels and flights with crypto payments, has also focused on NEO, adding it to the accepted payment methods.
Like NEO, Lisk uses a slightly modified PoS mechanism. Lisk’s distributed consensus methodology is called Delegated Proof of Stake, or D-PoS.
In the PoS system, the entire network is involved in confirming a transaction. Whereas in the D-PoS system, this burden does not fall on the entire network, but is in the hands of a limited number of delegates.
Lisk provides a sidechain (secondary blockchain) and a complete software development kit (SDK) to produce dApps (decentralised applications) under a single system.
VeChain is another top PoS-based cryptocurrency and is very popular today.
Founded in 2015, VeChain’s blockchain is focused on the supply chain industry.
It is no coincidence that in the last year, several collaborations have arisen with some of the world’s largest companies such as Walmart and Amazon Web Services.
VeChain also seems to be very successful outside of the business aspects given the numerous daily transactions recorded on its network.
Stratis is a project that targets mainly companies and aims to provide BaaS (Blockchain as a Service) solutions. It is based on the well-known C# programming language and the .NET framework.
Given the popularity of the programming language, especially in the Windows environment, it may become even more successful over time.
Stratis allows companies to build their own private blockchains, which can then be integrated with Stratis’ main blockchain.
The token used on the Stratis blockchain is called STRAT.