![1[2].jpg](https://images.hive.blog/768x0/https://steemitimages.com/DQmQdgX89UUSCad6wyQArbdNjP86N9Gcx5dw9g4mfJekVjB/1%5B2%5D.jpg)
As blockchain, cryptocurrency and crypto assets revolution gain momentum, we are faced with the problem of the right algorithm to deploy that won’t jeopardize the communities and ecosystems we build. In the cryptocurrency world there are two most important algorithms which are in use, which are Proof of Work (PoW) and Proof of Stake (PoW) algorithms, however there are more other algorithms that are being proposed, such as Proof of Asset (PoA), Proof of Concept (PoC), etc.
PoSToken is a Proof of Stake smart contract token built on the Ethereum blockchain, which means it’s algorithm is Proof of Stake, making it the first PoS smart contract token on the Ethereum platform. What’s the difference with Proof of Stake algorithm? In all simplicity, it’s an algorithm which rewards coin holders. Coin holders earn extra coins just by holding some coins for a period of time in the Proof of Stake system. To the noobs, this is the major differing feature between Proof of Stake and Proof of Work system. However, to the tech savvy in the crypto space there’s more to that, we will however leave that for another day.
WHAT THEN IS PoSToken?
![2[1].jpg](https://images.hive.blog/768x0/https://steemitimages.com/DQma7epdtFNGbpcGv36ptKXCgNMj6Y7fZSijC3foDsTieiF/2%5B1%5D.jpg)
As earlier stated, PoSToken is the first Proof of Stake smart contract token on the Ethereum blockchain. It’s based on the ERC20 token standard, which specifies/defines how tokens created/minted in the Ethereum blockchain should work and interact with each other in the Ethereum ecosystem. PoSToken as an ERC20 token based on PoS mechanism, seeks to reward every PoSToken holder with extra tokens when the holder holds the tokens for a period of at least 3 days, greater than or equal to The Minimum Coin Age.
Furthermore, the idea of the PoSToken Dev Team is not just only to issue a simple token in the Ethereum platform based on Proof of Stake for issuing sake, but to define a path and standards for future Proof of Stake tokens that are going to be issued on the Ethereum blockchain. These standards are just like the ERC20 standards, and are called PoSTokenStandard by the Dev Team. The Dev Team are committed to building an entire and healthy ecosystem based on these standards which are maintained in the PoSToken code and by the Dev Team. With the commitment and dedication of the Dev Team a series of services and applications would be created based on these standards in the near future.
It’s my belief that the Dev Team will keep building on the standards that future Proof of Stake tokens Dev Teams will implement in their codes. The future of Proof of Stake has started and a new era of Crypto Tokens is on the horizon.
For further info, visit the official project site and BTT below;
https://bitcointalk.org/index.php?topic=2110712.msg23047267#msg23047267
You can also register for PoSToken Airdrop if you have a registered Bitcointalk account opened before 22/08/2017: https://airdrop.postoken.org/?r=59e8fb952f