The world of cryptocurrencies is highly dynamic in nature and so requires constant efforts from firms to keep the customers hooked to their platforms. One such prominent developmental change introduced in the crypto arena is the pedagogy of ‘Bitcoin Proof of Stake’ (PoS) consensus. The concept brings together the expertise of the Bitcoin blockchain and PoS consensus algorithm in an amazing way to aid the crypto community as a whole. Instead of being a Bitcoin fork, Bitcoin PoS is a product of the Bitcoin codebase studded with a chain of upgradations.
We know that Bitcoin presently uses the Proof of Work (PoW) consensus mechanism for mining, which requires knowledge about solving complex mathematical algorithms. On the other hand, in the PoS method, the network aims to achieve a distributed consensus where the creator of the next block is selected through multiple combinations of random choice and wealth or age.
This article explores the concept of Bitcoin PoS (BTP), its features, and its benefits over the PoW mechanism.
About BitcoinPoS (BTP)
BitcoinPoS enriches the crypto community with a robust, innovative, and user-friendly P2P electronic cash system. The team on its website clearly mentions that their system is a cult example of Satoshi’s idea’s reimagination in one of the best forms. The ecosystem uses the best attributes of the Bitcoin network along with the innovative approach of PoS consensus methodology, which can prove a big step in evolving Bitcoin as the future of payment systems.
BitcoinPoS allows users to enjoy speedy real-life transactions with the assurance of high-end security, transparency, and immutability. The maximum coin supply of BTP is 21 million Bitcoin PoS. Bitcoin PoS system pools in fees from transactions and uses it to reward the stakers.
Salient Features and Benefits of BitcoinPoS
- By replacing PoW algorithm with PoS mechanism, Bitcoin PoS has resorted to the issues related to the centralization of operations in the Bitcoin network.
- Bitcoin PoS concept brings down electricity consumption by 99%, as confirmed by the Ethereum team.
- It promotes decentralization in a real sense as users do not have to rely on mining rigs and heavy machinery to perform mining. This easiness of operation encourages more participation from stakers, thereby promoting flexibility and decentralization.
- Bitcoin PoS brings the best security for customers against 51% attacks, which are prevalent in the PoW network. In PoS, an attacker will have to be in hold of a minimum of 50% of the network’s token supply to get control.
- The small block size of Bitcoin PoS slashes down the block times, significantly encouraging more transactions per second.
- The retailers and retail users can enjoy quick and instant transactions supported by block finality.
- Enhanced throughput caliber indicates that scaling is done of the same chain without depending upon external parties.
- The implementation of the Mutualized PoS consensus feature in the BTP network is another major benefit.
- This restrains the entry of scammers attacking the network for free by rising the validation cost for them.
Bitcoin, in itself, is a rage in the world of cryptocurrencies. Shining as the leading crypto coin in the market, Bitcoin is known as the pioneer of cryptocurrencies. Clubbing Bitcoin with PoS enhances its operational capacities in a big way. It helps in solving the hardware issues, cost problems, and centralization limitations. The concept of Bitcoin PoS is here to stay for long. In the near future, we will see more and more users adopting it as their core pedagogy.