Proof of Stake (PoS) is a concept developed by early blockchain innovators such as Hal Finney and Adam Back. It’s a newer (and some think better) method (than Proof-Of-Work POW) of achieving consensus among distributed parties in a cryptocurrency network
Staking is where a coin holders put their cryptocoins in a PoS compatible cryptocurrency wallet and earn more coins as a reward. It has the same effect as mining in Proof of Work systems but the stakers don’t expend exorbitant amounts of electricity and computer power, so it’s considered an eco-friendly alternative. Instead of coins being mined, they are “Minted” and distributed much in the same way.
Other than saving holders’ electricity and the purchase of expensive mining equipment, PoS also avoids centralization of network power into the hands of few powerful individuals, companies, and mining conglomerates, which is one of the biggest problems of Bitcoin.
So if you are holding any such POS cryptocurrencies, then I think you should know how to start earning dividends by staking them in the right wallets.
And if you are not holding any such POS currencies, then you should start looking into them, as they can be an excellent source of smart passive income.
Top Proof-Of-Stake (POS) Cryptocurrencies
1. NEO Cryptocurrency
NEO, formerly known as Antshares, is the first Chinese open-source blockchain project, tagging itself as a “distributed network for the smart economy”. Thus, NEO is also famously known as Chinese Ethereum or Ethereum of China.
NEO is also a cryptocurrency that exists on NEO’s blockchain. Apart from the NEO cryptocurrency, NEO has one more crypto-token called GAS (formerly know as ANC or Antcoins) which can be staked in a NEO wallet for a handsome return and doesn’t require you to keep your staking wallets open all the times like in other POS cryptos.
Setting it up couldn’t be any easier either and there is no catch. You just need to accumulate yourself some NEO tokens, get them off the exchange and earn dividends.
- Annual Return – Approx 5.5%
2. Lisk (LSK)
Lisk uses a customized PoS known as delegated Proof-of-Stake, or DPoS. It means only the top 101 delegates are able to stake coins on this network. The delegates are voted on a rolling basis by the community.
Anyone can register a delegate account and that account can collect votes from any coin holder. 1 LSK equals 1 vote and every coin holder can vote with the total amount in his account. Those who do not get voted are listed as on standby but since the voting is dynamic, their status can change. Voters can earn by voting for delegates with the size of earning depending on the amount of LISK in the wallet.
The rate ranges between 6.25% – 100% depending on the delegate you choose.
3. ARK (ARK)
ARK is one of the best platforms startups, developers, and users with innovative blockchain solutions, creating an ecosystem of linked chains. The ARK platform is secure and well developed for mass adoption and will deliver the services consumers and developers want and need.
ARK has also given birth to a technology called SmartBridge, which is created to allow multiple blockchains to communicate with each other.
The ARK token runs on the ARK blockchain, and it’s used to pay for services done on the network. You can stake your tokens for some passive income.
4. Reddcoin (RDD)
Reddcoin is a social currency and is aiming to integrate in all major social networks to make the process of sending and receiving money easy. REDDCOIN is still relative cheap so you can pick a good amount up on the exchanges. With a annual rate of approx 5% this is easy money. But make sure to keep the wallet open 24/7, otherwise you won’t be in the game for free REDDCOIN.
It uses Proof of Stake Velocity, an algorithm that encourages both ownership (Stake) and activity (Velocity). These are the main criteria of being a social currency according to Reddcoin.
Coin age is calculated as a function of time and POSV can accommodate different forms of coin-aging functions. The algorithm reaches quicker consensus by giving preference to the head block containing largest sum of coin day spent among all the transactions.
5. NAV Coin
NavCoin is a decentralized PoS cryptocurrency based on the latest version of Bitcoin Core. The NavCoin’s cryptocurrency is completely anonymous, thanks to its technology which hides even the IP address of the computer from which the transaction was made.
NavCoin supports SegWit functionality and easy-to-use wallets that are equipped with advanced privacy features. Thanks to the PoS algorithm, holders can earn up to 5% of their investment by simply holding a wallet that supports this currency in a stake mode.
- Annual Return – Up to 5 %
Rohit Kukreja is a Commerce graduate with Financial Markets expertise involving Stocks, Forex, Futures & Options Market and now Bitcoins & Cryptocurrency Markets. Blockchain Enthusiast but not a techie, Rohit is an active member of various Blockchain & Crypto communities all over India.