Cardano Proof of Stake create incentive to hold coins

[benjamin7]

In a recent post on the Cardano forums the Proof of Stake mechanism is explained.

In short:

• Bitcoin transactions are validated by proof of work: computers doing calculations - requires a lot of energy)
• Cardano transactions are validated by proof of stake: being online and holding coins to secure transactions.
• Incentives motivate people to 'do the right thing': for example the rewards one gets for staking ADA coins and being online. For Cardano this requires a lot less computational power than with bitcoin which is a great + !

---

Read more about it on the Cardano Forums:
https://forum.cardano.org/t/summary-pos-delegation-incentives-lars-brunjes/11880

Comments

[thecryptotrader]

interesting!

[hatu]

Hi, thank you for contributing to Steemit!

I upvoted and followed you; follow back and we can help each other succeed 🙂

P.S.: My Recent Post

[steemitboard]

Congratulations @benjamin7! You received a personal award!

1 Year on Steemit

_{Click here to view your Board of Honor}

Support SteemitBoard's project! Vote for its witness and get one more award!

[steemitboard]

Congratulations @benjamin7! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 2 years!

_{You can view your badges on your Steem Board and compare to others on the Steem Ranking}

Vote for @Steemitboard as a witness to get one more award and increased upvotes!