Blockchain technology is the revolution in the history of mankind. Blockchain distributed ledger technology stores anything of value securely. Blockchain is immutible and incorruptible technology. Blockchain backed cryptocurrencies are the future of financial transactions. In order to complete and verify a transaction mining is to be done. In first generation blockchain mining is done through proof of work (POW). In proof of work, computer hashing power is used to solve the mathematical puzzle to verify and complete the transaction. But today the POW mining is not economical, the mining hardware and electricity required is non profitable. The proof of stake (POS) is the new generation mining. Where mining is done by simply staking the coins.
The Pool Of Stake (PSK) is the future of blockchain. PSK is a decentralized pool for proof of stake. The PSK is completely decentralized, trustless and self regulated pool through distributed nodes and with powerful smart contracts. The mining with proof of stake is called mining 2.0 . The mining 2.0 is done by simply staking the proof of stake (POS) coins, thus they can generate the rewards. Now the pool of stake is here to make the mining 2.0 more secure and profitable for POS coin holders.
Why we need PSK in mining 2.0 ?
As discussed above the proof of work (POW) requires computational power to solve the complex mathematical algorithms to validate the transactions. POW is the first generation blockchain algorithm. Presently expensive electronic hardware components with high graphic power required to mine coins like bitcoin. New coins will be generated through mining in terms of mining reward for miners. In case of Bitcoin as more miners mine bitcoin, the mining difficulty increases. As the mining difficulty increases, more computational power, high graphic processors required to mine. Thus mining will become unprofitable and un eco-friendly. Today the biggest mining pools such as Btc.com, Antpool, viabtc, slushpool and BTC.top are control the 77% of the hashing power of total bitcoin network. Thus they are responsible for centralized mining pool, which is dangerous for the crypto community.
The Proof Of Stake (POS) is totally decentralized and it is the new generation mining. In proof of stake mining is done through staking POS coins to validate the transactions. Here the miners are called validators to perform mining 2.0. Here the next block to be mined is chosen through voting power of random validator. More the coins staked for mining, more the voting power of validator. In POS miners get reward in terms of mining fee incurred in validating the transaction. Thus here no new coin generated. The POS is highly energy efficient, more secured and reduce the risk of centralization.
In POS, the validator who has large number coins to stake will earn more transaction fee. Thus small validator will not earn much. To solve this problem Pool Of Stake (PSK) acts as a node, which enable small validators to connect each other to create a larger network weight and they can mine 2.0 and earn rewards collectively. Thus PSK completely eliminates the any reduced risk of centralization from the POS. Because of these reasons we need Pool Of Stake (PSK) in mining 2.0.
How to join PSK ?
In order participate in PSK, the existing POS coin holders need to exchange their coins through IOU (I Owe You) via smart contracts. Thus POS coin holders can collectively participate in mining 2.0 and can now earn rewards. The rewards collected everyday will be transferred to their POS coin wallet via IOU token. The IOU token provides them a full voting power. All the transactions are done through smart contracts which increases the trust. The purpose of IOU coin is only to declare the ownership of initial POS coin. The PSK is a utility token powered by Ethereum blockchain network, thus users can store their PSK token in Ethereum wallet.
In PSK the 5% of the income will be used to pay the gas required to send back the IOU token and to rebuy the PSK tokens. The re-brought PSK token will never be used again, this is called PSK burning mechanism. This will attract the investors more to invest in PSK.
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