'Considerations Regarding Proof of Work vs. Proof of Stake' blockchain tatum_io
More and more, Bitcoin is pushing its way into the mainstream with sensational headlines about its disruptive potential. But how are Bitcoins even distributed?
This has resulted in a veritable arms race between miners. They perpetually aim to outdo one another with more powerful and especially more efficient computers in order to get the biggest share of the bitcoins to be had. Bitcoin mining has become more competitive than ever.The Proof of Stake Model revolves around a simple idea: you do not need miners in the network to solve a puzzle, which results in massive energy savings.
A cryptocurrency which bears the risk of being classified as a security is most definitely far from ideal for a world of payments due to regulatory reasons. The main issue is that every professional player dealing in exchange of securities becomes a security dealer. This is an activity under much higher regulatory scrutiny than foreign exchange trading which is done if e.g. Bitcoin are exchanged for Swiss Francs or US dollars.
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