Beldex plans to introduce PoS on Monero blockchain
Privacy-focused cryptocurrency exchange, Beldex, plans to introduce POS on its Monero based blockchain. Estonia based cryptocurrency exchange has announced on its website that they might be using PoS for their native token.
POS, short for Proof of Stake, would bring Beldex blockchain certain advantages. The most important one would be faster transactions. Using POS, it is theorized transactions can be confirmed in a matter of seconds. This will allow BDX coin to be used as payments as well, apart from the proposed use case of exchanging coins privately.
The BDX token is a fork of Monero, with the introduction of masternode. A masternode is a special node which keeps the entire copy of the blockchain. Apart from keeping an entire copy, the node also takes part in governance and voting. To ensure the trustworthiness of the master node and protect the blockchain from malicious users, a number of tokens need to be time-locked.
In BDX blockchain too, to operate a masternode a user is required to stake some tokens. The current minimum requirement is 10K BDX token. Masternodes in BDX receives a portion of the block reward.
BDX blockchain currently uses Monero’s PoW algorithm. A PoW (short for Proof Of Work) is a piece of data that is difficult to produce but easy to verify. PoW algorithms verify the authenticity of the data, thus verifying a transaction. Since the data is difficult to reproduce, the blockchain remains secure.
But there’s a drawback to the PoW algorithm. PoW is slow and requires a huge amount of energy to maintain its security. Bitcoin’s electricity consumption is one of the most criticized aspects. BDX blockchain itself isn’t immune to the drawbacks of PoW.
Based on the drawbacks of PoW, BDX plans to introduce PoS on its fork of the Monero blockchain. The idea isn’t finalized yet, but according to Beldex’s website, it will happen in the near future.
The details regarding the proposed POS integration remains unclear. Monero community has been against the PoS algorithm for a long time, the reason being that POS may compromise on privacy. But according to officials from Beldex, the team is researching in this area and is expecting a breakthrough soon.
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