Proof of Stake (PoS) algorithm became more popular than Proof of Work (PoW) in the past year and many new-born blockchains began to use PoS. Even Ethereum is migrating to PoS. In order to make it clearer for those who are beginners in cryptocurrency world, we are going to have a brief about these two algorithms. In PoW, miners use special hardware to generate new blocks and receive reward in return. However, in PoS, users deposit their tokens in PoS pools to contribute in mining process and receive a dividend. Here we are going to talk about the newest trend in crypto world.
How does PoS work?
PoS proves the benefits of buying a token and hold for long-term. The reason is that holders receive dividend in return of their investment. However, this system has a major problem. The problem is that when someone stakes his token, it will be locked and cannot be used for any other purposes.
The Newest Trend In Crypto World; an exciting solution
Finally, a new algorithm is introduced in blockchain technology world, which could solve the issue. This incredible algorithm is called Multi-Bonded Proof of Stake (MBPoS). In fact, it gives the control of the asset to users and make them be able to use staked tokens for other purposes. For that reason, it could become a trend in crypto world. For instance, users would be able to trade their tokens while they are staked. This algorithm is used just in one blockchain so far. Let’s take a deeper look at this blockchain.
What is KIRA?
KIRA is the only blockchain, which is using MBPoS and let its users to use their staked token for other purposes. In addition, users can use DeFi tokens for staking purpose. For example, if Ethereum were using this algorithm, users would able to stake ChainLink or YearnFinance token. For that reason, many believe that KIRA could become dominant in crypto world.