It is common that periodically arise doubts related to the technological field and depending on the cryptocurrency they can work with a specific system, although the most common systems are the PoW system (Work test) and the PoS system (Participation test). And we know that Deep Onion is a hybrid cryptocurrency that also uses technologies like PoS and the PoW algorithm. To know more about this technology it is necessary to know the following, because Deeponion has the best quality and one way to prove it is by having the Pow system, which is an algorithm initially designed to stop attacks of denial of services and spam with emails, Proof of Work (Pow) guarantees the security and balance of accounting through a network of miners, being responsible for processing algorithms to obtain the tip. And also to guarantee that the parties of a network demonstrate their good intentions by spending electric energy (cost), in order to obtain a possible reward.
The miners use computers with powerful processors (commercial or specialized) to solve hash riddles that, once solved, allow them to propose the next block of transactions to add in the chain of blocks and collect the reward for it, valued in cryptocurrencies. In a PoW algorithm, the necessary optimization (if you want to compete) of software and hardware favors the miners with more capital and time to invest. That is, it is inevitable that, in the long term, the mining power will be centralized. In a way, the real incentive is to mine in a big way. The profitability obtained based on the money invested in mining is NOT linear.
Deeponion also works with the Proof of Stake (POS) algorithm but something diametrically opposed happens. It is an alternative consensus algorithm to the PoW in which participants (nodes) send a special transaction that blocks their funds for a certain period of time and allows them to enter the process of creating and validating blocks. Depending on the type of algorithm, the network randomly defines the participant who can propose the next block to be added to the chain or the participant in each round of a longer decision process in which the other participants of the network vote for the block which they consider should be added and the winner is finally added to the chain of blocks, thus reaching consensus. In a POS algorithm, the expected return based on the money invested YES is linear.
POS indicates that a person can extract or validate block transactions according to how many coins they have. This means that the more Cryptocurrency is owned by a miner, the more mining power it has. POS is a way to incentivize the owners of the different altcoin that help blockchain network of that cryptocurrency, that is, the more coins you have in your wallet of an altcoin that uses Proof of Stake (POS) plus network aids and more reward will have. Nowadays there are many cryptocurrencies that use this system, since in that way they also maintain the market capital of that currency, and the more people interested in the stake test (POS), the more investment and market capital they will enter in said currency, and therefore the value of this currency will increase more and more in he time.
DeepOnion's use of both POS & POW is a great idea. Not a lot have ASIC miners to mine Onions so POS can help on this one. Just need to get more Onions and stake. Currently staking Onions in my wallet and it's staking like a boss.
I also heard that they are still having weekly Airdrops. How cool is that?
Lot of ways to earn free $onions huh?
Nice read. In the current climate PoW is a necessity but it is pretty inefficient with all the power consumption and hardware costs which is why I like PoS and it also rewards the people who are invested in that particular project and not just whatever the miner feels like pointing their equipment at.
You did great covering the topic. DeepOnion developers made the correct choice of using all three (PoW, PoS, Airdrop) methods to achieve fair coin distribution. Everyone has a chance, unlike ICOs that isn't fair and favors only early investors.
Great Article!! Thank you very much for Sharing..