Moving into the Future – From PoW to PoS!
Proof of Work has been the state of the art of consensus algorithms for first-generation blockchains. Proof of Stake is the new kid on the block and 2018/2019 will be the years in which PoS will be fully adopted by major players in the blockchain field. When PoS becomes the new gold standard of blockchain, Pool of Stake will be ready to become the biggest forging pool for PoS. The core value of cryptocurrencies lies in fully trustless, permissionless protocols and decentralization. PoW is not ecologically sustainable and exhibits fundamental problems that compromise decentralization. First-generation cryptocurrencies, e.g. Bitcoin, create new coins via mining, that is, by using computational power to solve mathematical puzzles based on blockchain rules. Due to significant growth rate of the network over time, Bitcoin’s PoW algorithm is facing fundamental problems. With the current block size, Bitcoin has a maximum transaction capacity of 7 transactions per second, with peak transaction costs of around $50 and an annual energy consumption of 42 TWh (the same amount as New Zealand). These facts demonstrate that the first-generation digital cryptocurrency network Bitcoin has fundamental limits for scalability and problems with efficiency that cause it to that stray from its core philosophy. While the Bitcoin community was fighting and becoming divided over Bitcoin and Bitcoin Cash, in 2012 other parts of the community took a step into the future by inventing a new consensus algorithm: Proof of Stake (PoS). In 2018/2019 Ethereum will switch from PoW to PoS. PoS is the future of blockchain and PSK is already here to bring PoS coin holders together and make the greatest profit possible in Mining 2.0.
Pool of Stake (PSK) is a first of its kind, decentralized pool for Proof of Stake, the future of blockchain. Qtum, BOScoin, Tezos and other PoS coin holders can unite in the Pool of Stake and start Mining 2.0, generating daily forging rewards by simply staking their PoS coins. PSK is a fully decentralized, self-regulated and completely trustless pool. This is made possible by powerful use of Smart Contracts and globally distributed nodes. PSK makes Mining 2.0 more secure and more profitable for individual PoS coin holders. The main goal of PSK is to increase profits for small miners who unite in the Pool of Stake.For this purpose, an ERC-20 PSK utility token and an IOU token are used, ensuring that PSK members are always in full control of their staked coins. The PSK platform will provide an analytics tool via a smart i.o. database that will allow PSK members to track, control and optimize their investments in a fully trustless way. In this white paper, we explain the implementation of PSK and its services. We elaborate the governance vision which will be developed in the coming months to ensure that the PSK community remains fair and agile. We then present detailed information relevant for the upcoming ICO starting 2 May 2018. We conclude the white paper with a review of our current accomplishments and an overview of projected milestones.