Pool of Stake (PSK) is a first of its kind, decentralized pool for Proof of Stake, the future of blockchain
Proof of Work has been the state of the art of consensus algorithms for first-generation blockchains. Proof of Stake is the new kid on the block and 2018/2019 will be the years in which PoS will be fully adopted by major players in the blockchain field. When PoS becomes the new gold standard of blockchain, Pool of Stake will be ready to become the biggest forging pool for PoS. The core value of cryptocurrencies lies in fully trustless, permissionless protocols and decentralization. PoW is not ecologically sustainable and exhibits fundamental problems that compromise decentralization.
First-generation cryptocurrencies, e.g. Bitcoin, create new coins via mining, that is, by using computational power to solve mathematical puzzles based on blockchain rules. Due to significant growth rate of the network over time, Bitcoin’s PoW algorithm is facing fundamental problems. With the current block size, Bitcoin has a maximum transaction capacity of 7 transactions per second, with peak transaction costs of around $50 and an annual energy consumption of 42 TWh (the same amount as New Zealand). These facts demonstrate that the first-generation digital cryptocurrency network Bitcoin has fundamental limits for scalability and problems with efficiency that cause it to that stray from its core philosophy.
While the Bitcoin community was fighting and becoming divided over Bitcoin and Bitcoin Cash, in 2012 other parts of the community took a step into the future by inventing a new consensus algorithm: Proof of Stake (PoS). In 2018/2019 Ethereum will switch from PoW to PoS. PoS is the future of blockchain and PSK is already here to bring PoS coin holders together and make the greatest profit possible in Mining 2.0.
The permissionless, distributed ledger technology of blockchain makes the need for third-parties obsolete on a technological level. This distribution can be (but does not necessarily have to be) reflected in the human governance model and provide true decentralization. Every token or coin poses different demands on the governance model. For the most part, a clear and simple governance model gives users the possibility to voice their preferences and hence ensures the loyalty of the community (and with it the success of the token/coin). First-generation PoW blockchains that strictly reject a governance model fall into a “Tyranny of Structurelessness” which leads to informal governance practices. This in turn creates a concentration of power in two (usually mutually conflicting) interest groups, namely core development teams and miners, despite the potential that blockchain as a DLT offers. This creates unjust oligarchies/cartels, bribing and other undesired effects compromising blockchain’s core value of decentralization. As already discussed in the introduction, PoS redistributes power back to stakeholders
The key to success is security in both, software and hardware. As for the software- PSK’s Smart Contracts are based on the Ethereum blockchain with all its security services. PSK is a ERC-20 token and the IOU token is code-wise close to the ERC-20 token. This means that the largest parts of the code are already well tested and stable. From the very beginning the security level of PSK’s Smart Contracts is as secure as Smart Contracts in general can be. Concerning the hardware, the tech team of PSK is doing in depth research for the best and most secure server solution. The current plan is to have a physical server in a data farm close to Zurich. This would allow the tech team to quickly react to any form of impairment (see table below). A very substantial point of PSK’s success is to be online 24/7 to keep the forging of the PSK community ongoing. Hence additional virtual servers will be used in the USA, Hong Kong and other locations. Here the importance is to be spread globally, in order to lower substantially the chances of a DDOS attack. The exact solution is subject to ongoing research.Any updates will be communicated to the PSK community promptly.
For Information
Website : https://www.poolofstake.io/
Whitepaper: https://www.poolofstake.io/wp-content/uploads/2018/04/Pool_of_Stake_whitepaper.pdf
Twitter: https://twitter.com/poolofstake
Telegram: https://web.telegram.org/#/im?p=@poolofstake
Facebook: https://www.facebook.com/poolofstake
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