Blackcoin’s Proof of Stake 2.0

The staking giant Blackcoin recently anBlackcoin Blackcoin's Proof of Stake 2.0Blackcoin Blackcoin-80x80nounced that it has revamped the traditional proof of stake (PoS) algorithm and will be releasing it in their next update, calling it Proof of Stake 2.0.

Some of the details of the updated version of PoS were released in Blackcoin‘s PoS protocol V2 Whitepaper (link). Among other things, the new PoS system will lead to increased security and faster transaction times by encouraging users to leave their wallets open rather than opening them only occasionally to ‘game’ the staking system. It does this by eliminating the ‘coin age’ factor from the staking algorithm. With the traditional proof of stake algorithm that was first introduced by Peercoin, ‘coin age’ is accumulated whether a wallet is open or not. As long as coins aren’t moved, they accumulate coin age.  In order to stake, most people just leave their wallets open a couple of times a month to basically ‘cash in’ their coin age bank to get a higher staking priority to receive stake. In this way, most users do not support the network, since their wallets are almost never open. This has a negative impact on both the level of security and the transaction times. With the new proof of stake algorithm, your ‘network weight’ will be based upon the number of coins that you have associated with your wallet rather than a combination of coin age and the number of coins.

Here’s an excerpt from PoS 2.0 Whitepaper (link) that explains the changes:

The most secure way to perform a Proof of Stake system is by having as many nodes online as possible. The more nodes that are staking, the less possibility for security issues like 51% attacks, and the faster the actual network will perform transactions through these nodes. Thus, taking out the coin age will require all nodes to be online more to get their stake reward. Saving up coin age is no longer a possibility with the new system that calculates the chance of staking as follows:

proofhash < coins · target

Blackcoin Market Chart Blackcoin's Proof of Stake 2.0Screenshot 11 e1404357145138 Screenshot-11-e1404357145138-300x144The e-currency markets appear to be eagerly awaiting the release of PoS 2.0 and rumors have been circulating that so called ‘whales’ have been quietly accumulating Blackcoin for the last couple of months. Actually, Blackcoin has been one of the more stable e-currencies over the last few months (see chart right). Blackcoin currently holds the 10th position among e-currencies in terms of market capitalization and maintains a very healthy trading volume. Blackcoin has also achieved one of the highest levels of exchange and merchant adoption among the growing ranks of e-currencies.

One of the key aspects to Blackcoin’s continued success is its open development community. Rather than a very focused small group of individuals, Blackcoin seems to embrace a more open development approach that is similar to what we have seen with Bitcoin. While development is guided by the Blackcoin Foundation, a development community-like approach is embraced and encouraged. Actually, it was a member of the Blackcoin development team that recently released the concept of BlackHalo, which will be one of the first implementations of a ‘smart contract’ system. Blackhalo uses an innovative technique that uses ‘double deposit escrow’ in which involved parties will have a much higher reward for following through with a contract then they would if they defaulted. This new system would allow for the creation of ‘decentralized’ exchanges that would eliminate potential problems like the ones we have seen with the Mt. Gox debacle.

Blackcoin’s Community Manager, Soepkip on Bitcointalk (BC”s announcement post) and on Reddit (BC Reddit), gave us a brief comment regarding the upcoming release of PoS 2.0, but understandably so, remained tight lipped about when PoS 2.0 will be released:

The code itself is basically finished. We’ll push out the new version quite soon. If you have specific questions I can of course answer these :).

Greetings,

Soepkip

This continual improvement and innovation is what continues to draw many of us to e-currencies. The Blackcoin community knows that it cannot rest on its laurels with so much competition in the e-currency marketplace and they appear to be making the continual forward progress and innovative improvements that are necessary to survive and to thrive.

Source: Coinssource.com

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Ralphvd

Ralphvd

My name is Ralph. I am founder of Dailyblackcoin.com. The reason why i started with this website is because i wanted to create a news portal where people come every day such as Wallstreet Journal.