List of Top 10 Proof of Stake Cryptocurrencies
First of all, let’s be clear with the concepts!!
What is proof of stake?
It is a concept to mine or validate the transactions of the block, according to how many coins a person holds. It means the more the cryptocurrency owned by miner the more mining power he/ she has. In the proof of stake system, there is no block reward, so the miners take transaction fees. Proof of stake currencies can be several thousand times more costs effective as compared to the Proof of work currencies.
Peercoin, was the first ever cryptocurrency to adopt this method Proof of Stake and then
Why go for proof-of-stake coins?
In the Proof of Work (POW) system, mining requires a huge amount of computation power to run diverse cryptographic, this power then translates to high amount of electricity and power needed for proof of work and in 2015, one bitcoin transaction required the amount of electricity needed to power up 1.57 American households per day. To kick out that electricity bill, miners sell their awarded coins for fiat money. This thing downs the price of cryptocurrency. This is why Proof of stake was created to solve issues.
These days there are hundreds of cryptocurrencies using Proof of stake system. Here are some of the top ten cryptocurrencies.
Dash is one of the most popular cryptocurrency. Dash is known as Digital cash. It is one of the pioneers of the proof of stake technology. It is built on the core bitcoin platform or system but Digital cash has the additional function of privacy and quick transaction such as InstantSend and PrivateSend.
Digital cash allows its holders to run a master node to earn dividends in form of a dash and stake a minimum of 1,000 DASH. The investment you need is of about $1,110,000 because one dash coin will cost you $1,110.
It has an annual return of 7.5% plus the price appreciation reward of DASH.
NEO is the first Chinese open-source blockchain project. It uses a delegated Byzantine Fault Tolerance (dBFT). You will need a stake to minimum 1,000 NEO, which is an investment of $87,000 as its current price is $87.
[image credit: neo.org]
These stakes receive GAS which is totally different to cryptocurrency token. The value of GAS is above $34 having a market capitalization of $319 million.
The generation of GAS is depending on the amount of coin you are holding. Every 5 minutes GAS is generated. You can earn about of 5.5% in an annual return.
PIVX means Private Instant Verified Transaction. It is a Proof of Stake (POS) that focus on privacy and security while ongoing transaction. PIVX was forked out of DASH in 2016.
[image credit: pivx.org]
Staking on PIVX requires 10,000 PIVX units. Which you have
It uses custom Proof of Stake known as delegated Proof of Stake or DPoS. Only 101 delegates are able to stake coins, the delegates are voted on a rolling basis by the community. The delegate can be registered by anyone and that account can collect votes from any coin holder where 1 LSK is equal to 1 vote and every coin holder can vote with the total amount in his account. Voting is dynamic and those who don’t get a vote are listed as on standby.
[image credit: https://lisk.io]
OkCash launched in 2014 and it is another Proof of Stake. It provides the highest return which is 10% per year. You need to move OkCash coins into a staking wallet and it will start earning. OkCash aims to be a fast currency which can be used for a microtransaction.
[image credit: http://okcash.io/]
Any amount can be kept at stake, there is no limit.
6. NAV Coin
NAV Coin is the first ever cryptocurrency that has dual blockchain for a private transaction. It is based on core bitcoin code and it takes only 30 seconds to complete a transaction.
[image credit: https://navcoin.org/]
40% of the 62M NAV is used for staking so that it generates 1.24M NAV per year, NAV coin offer up to 5% annual return.
It is a blockchain based platform which simplifies development, testing, and deployment of C# applications on the .NET framework.
[image credit: stratisplatform.com]
STRAT is a native token of Stratis and can be staked in a Stratis wallet to earn rewards. Profit is too low as compared to another cryptocurrency which is 0.5 to 1% annually.
Reddcoin is a tipping cryptocurrency on the social network. In Reddcoin you can tip any content that you like on various social media platform.
[image credit: www.reddcoin.com]
Using Proof of stake cryptocurrency Reddcoin can also be staked in a wallet which gives a good return to owner/ holder that is approximately 5%.
Reddcoin also uses proof of stake velocity, that encourages both ownership (Stake) and activity (Velocity).
9. ETHEREUM and PoS
Ethereum is one of the popular cryptocurrency has been using Proof of Work. But it is one of the early cryptocurrency projects that have been considering PoS.
[image credit: ethereum.org]
As per the statement made in December 2017, they had implemented Casper, an update to initiate Proof of Stake evolution and the announcement said Casper will soon be available on the Testnet.
10. DIVI and NXT
Divi – has a low market cap of $ 16.77 M and it uses 5-tiered master node system with the first level requiring an investment of 1,000. DIVI requires an investment of $2,490 as its current price is $2.72.
[image credit: diviproject]
NXT – it requires at least 1000 coin to a stake. So the investment of about $640 at a current price of $0.64.
[image credit: nxtplatform.org]
There are many other Proof-of-stake cryptocurrencies in the market but these are the most popular ones. The other cryptocurrencies include Omni, BitcoinDark, BitShares, Blocknet, CLAMS, Cloakcoin, Crowns, Diamond, Elastic,
This technique is one of the smartest ways to earn passive income. There are many currencies the entry barrier is low to get started.
It's true that investing in cryptocurrencies only, won't make you richer but 1% to 5% earning is not bad at all for literally doing nothing and just keeping your wallet open. Staking is much more profitable in some countries like the USA because there is ZERO interest rate.