2.3. PoS System
PoS (Proof-of-Stake) mining works with randomness to decide who will be the creator of the next block. Similar to a draw, blocks are validated between miners who have the most coins in their wallets. As a rule, the more coins a network participant has in their wallet, the greater their “mining power” in the PoS system.
Its adoption is a trend among cryptocurrencies for being more efficient in terms of electricity consumption, different from PoW (Proof-of-Work) mining, in which the miner simply dumps the coins on the market.
The term used for blocks in PoS mining is “forged block”, different from PoW, which calls it “mined block”.
The reward distribution in the PoS system varies greatly according to the coin algorithm. In certain currencies, this reimbursement for the creation of a new block is distributed proportionally to the existing amount.
LPoS
At Lunes, we use the Leased Proof-of-Stake (LPoS) system, where users lend their cryptocurrencies to some “node” for them to mine, this process is called “Leasing or Stake”.
Here, there is no creation of new coins for each block, because they were all generated in the genesis block after the ICO process, and therefore mining in this case rewards only the transaction fees of that forged block.
Nodes distribute their benefits among their leasers – who are the ones who lent their coins – at a certain time, according to each node. The interesting thing about this model is that the coins do not leave the possession of the user who lent them and he can cancel whenever he wants.
The main benefits of the LPoS system are:
Ecological It doesn't need powerful computers or a lot of electrical energy;
Inclusive Even if you have few cryptocurrencies, you will receive the proportional rewards for participating in the stake;
Safe This model is less likely to suffer a 50+0.01% attack.
And based on market studies, the technical team is analyzing various protocols to create and add more solutions to the crypto world. In the coming months, Lunes will implement a new consensus algorithm on its network and this whitepaper will be updated with all the details.
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