Cardano Proof of Stake create incentive to hold coins

benjamin7 (29)in #cryptocurrency • 7 years ago

In a recent post on the Cardano forums the Proof of Stake mechanism is explained.

In short:

Bitcoin transactions are validated by proof of work: computers doing calculations - requires a lot of energy)
Cardano transactions are validated by proof of stake: being online and holding coins to secure transactions.
Incentives motivate people to 'do the right thing': for example the rewards one gets for staking ADA coins and being online. For Cardano this requires a lot less computational power than with bitcoin which is a great + !

Read more about it on the Cardano Forums:
https://forum.cardano.org/t/summary-pos-delegation-incentives-lars-brunjes/11880

#cardano #bitcoin #crypto #blockchain

7 years ago in #cryptocurrency by benjamin7 (29)

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thecryptotrader (63) 7 years ago

interesting!

hatu (76) 7 years ago

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steemitboard (66) 5 years ago

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