Blockchain technology has been based on the PoW or Proof-of-work consensus algorithm for years. But, there have been some fundamental problems in the process that hinders decentralization which is the very core of the Blockchain technology. There is limitation in the number of transactions per second and thereby also increasing the transaction cost and annual energy consumption significantly. Scalability and efficiency has been a major issue of PoW.
In regards to these drawbacks, the Blockchain community has developed a new platform called the Proof-of-Stake consensus algorithm or PoS. By 2018-2019 PoS will be accepted worldwide by all the Blockchain platforms. Pool of Stake is a product of Proof-of-Stake mechanism and it works on all PoS Blockchains.
Pool of Stake: How does it work?
Pool of Stake is a safe pool for Proof of Stake coins. It will operate on all PoS Blockchains and currently accepts Qtum, Stratis and Universa, but soon it will start working on the Ethereum Blockchain as well. The Pool of Stake aims to increase the profits of the small stake holders by creating a favourable trusted environment and pooling the funds together.
In Pool of Stake platform stakeholders contribute their tokens that the platform currently accepts and create a pool along with other members of the ICO. The platform will share the reward among the members according to their initial contribution. The platform currently uses two tokens; the ERC-20 PSK and a KEY token. The ERC-20 token gives discounts and rewards to the members and the KEY token rewards the initial investment.
Users here buy PoS coins like Ether or Qtum etc. They then participate in the Pool of Stake consensus to increase their share of profits. In order to do so, they first transfer the PoS coins into the Pool of stake via the smart contract. In return, they get the KEY token which acknowledges their initial investment and also allows them to withdraw their funds. The KEY tokens cannot be traded in any way because it declares the initial coin ownership of the holders. The PSK is the utility token that enables stake holders to earn discounts and rewards. It is kept securely in the Ethereum wallet.
The reward of Pool of Stake is calculated every night at 23:59:59 CE(S)T. Here the greater the stake the greater is your reward. The withdrawal of initial staked coins is free, however, for withdrawal of rewards you have to pay a minimum fee. The team of experts behind the platform is working to further develop the mechanism in order to make it more trust-less and decentralized. Pool of Stake allows stake holders to join hands and contribute to the stake pool together and earn greater rewards.
Pool of Stake Features:
- Highly secure platform and protects the privacy of the stakeholders.
- Tools are there by which users can check the pool stake and their share of rewards any time in the platform.
- The smart i.o database enables members to gauge the performance of different PoS coins so that they can make their future investments. It also enables them to track and control their investments.
- The PSK platform provides an interface in which members can communicate with each other, vote and can make and implement important decisions.
- The Platform maintains a permissionless distributed ledger system which is truly decentralized and does not promote interference of any third party.
- The simple governance model is easy to propagate and allows all users to voice their opinions.
- Extremely profitable for small PoS coin holders who can earn greater rewards on their investments.