Editor's Note: This article comes fromBlock Beats BlockBeats(ID: BlockBeats), author: 0x29, reprinted by Odaily with authorization.
Editor's Note: This article comes from
(ID: BlockBeats), author: 0x29, reprinted by Odaily with authorization.
If in the first half of 2018, someone told you that you can use Token to mine, you might think that this is an MLM project, but now that the blockchain world has developed to the 3.0 stage, more and more blockchain projects provide The system-level token mortgage method is used to "produce" new tokens, and the new currency issuance rate of many blockchain projects can even reach 20%.
At present, Livepeer is particularly eye-catching among such projects that can "create coins with coins". In just a few weeks, the number of nodes in the Livepeer network has reached 46,000, and the popularity and participation far exceed all blockchain projects in the same period. and DAPP have occupied the top position in the BlockBeats DAPP trend list for many consecutive weeks.
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What attracts investors to start paying attention to PoS node revenue?
It is super high income. According to the data from the PoS income website Stakingreward, Livepeer's rate of return is currently the highest among all PoS projects, with an annual rate of return as high as 155%.
Before 2018, PoW represented by Bitcoin was the most mainstream decentralized consensus. In the PoW world, miners were once a very popular profession. They use mining machines to mine coins, and then sell the coins they get. When the price of Bitcoin peaked, the number of miners soared, and the mining machines were even out of stock. This is the gameplay of the Proof of Work consensus. In this economic incentive system, only the workload is considered. The faster you do your calculations, the more rewards you can get.
In the middle of 2018, the DPoS consensus represented by EOS attracted a lot of attention in the currency circle. In June, the EOS mainnet with a financing of 4 billion US dollars was launched, which drove the enthusiasm of the entire currency circle. The network performance surpassing Bitcoin and Ethereum made the DPoS consensus highly respected, and in 2019, Proof of Stake became the hottest consensus in the industry, and "partnership" became a new trend in the circle.
Block Beats BlockBeats will explain this business in depth from the perspectives of PoS miners, the difference between PoS and DPoS, and the income of PoS nodes.
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"Miners" and "mine pools" in PoS
In PoW, miners maintain the network and verify transactions in the network, so they are entitled to economic rewards, such as Bitcoin. In the PoS network, there is also the same role of maintaining the network, but there are some differences. The so-called maintenance of network operation is worth packing blockchain transaction data in nodes for confirmation. PoW adopts a competitive approach, while PoS adopts a node relay approach.
First of all, the sources of coins in PoW and PoS are different. Bitcoins are dug out bit by bit, which means that community users must first become miners before they can have coins and generate liquidity. In PoS, through a variety of currency issuance financing channels, users get Tokens in advance, and only by complying with the system regulations can they have the opportunity to become "miners" in PoS.
Nodes have different names in different PoS networks. For example, in Tezos network, nodes are called bakers, and in Polkadot, nodes are called verifiers. However, their responsibilities are similar, and they are all responsible for generating blocks and maintaining the network.
In the PoW network, some miners will gather their computing power together to form a computing power organization that is much larger than what they can achieve, called a mining pool. The higher the proportion of computing power, the higher the probability of mining bitcoins. The mined bitcoins will be distributed according to the proportion of the miners' computing power in the mining pool. In PoS, there is also such a "mine pool".
In PoS, some coin holders have not reached the threshold of mortgage amount to become a node. For example, in Tezos, at least 10,000 coins are required to become a baker, but if a person with only 5,000 coins wants to become a node, he can only use The coin is entrusted to a person who is already a node, so that the coins of the two people are mortgaged together and become a node together. At this time, this kind of node becomes a "mine pool" in PoS.
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The difference between PoS and DPoS
In fact, the difference between DPoS (Delegated PoS) and PoS is not particularly big, and can be distinguished by the threshold of nodes and other content.
EOS is the representative of DPoS consensus mechanism blockchain, so many people think that the rules of EOS are the performance of DPoS. For example, in the EOS network, it is stipulated that nodes cannot distribute rewards to voters. Once such behavior is found, nodes will be punished. In fact, this is just EOS's own special rules, not all DPoS regulations.
The main difference between the two is actually the threshold for becoming a node: the focus of DPoS is elections, where coin holders vote their coins to candidates, and only the top-ranked ones can become nodes. For example, in a class of 50 people, there are 5 class cadres to be elected, and there are 10 candidates in total. You never know how many votes you need to get to be elected. You can only canvass as many votes as possible to ensure that you are elected. In this way, the node threshold of DPoS will be raised to a very high position, and super nodes will be formed accordingly.
The general PoS network is not an election system, as long as a certain amount of tokens are mortgaged, you can become a node. It was still the cadre selection in the same class just now, but now the rule becomes that as long as you have 3 votes, you are a cadre. In this way, the threshold becomes very low, much lower than the node threshold of DPoS.
Take Tezos, which started this upsurge, as an example. In the Tezos blockchain network, the node name is "baker". The standard to become a baker is to mortgage at least 10,000 XTZ. That is to say, as long as you have 10,000 You can also become a node. There are now more than 400 nodes in the Tezos network. On the EOS blockchain, which represents DPoS, if you want to become a block node with real power, you need 1.5% of the tokens in the entire network to vote, and this The numbers are still improving in the competition.
In this comparison, the advantages of PoS are indeed much higher than those of DPoS.
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PoS Node Income
Just as the coins mined in PoW are rewards for miners, the PoS blockchain will have a certain amount of additional issuance or release by the official foundation every year, and these additional issuances or releases are the source of rewards for nodes. Although EOS is the consensus of DPoS, the part of the node income is the same as that of the pure PoS network, and it also depends on the additional issuance of the network.At the beginning of EOS, it was stipulated that there would be an additional issuance of 5% per year, that is, an additional 50 million EOS would be issued each year to reward nodes. At that time, the price of EOS Token soared to 140 yuan. According to the estimate at that price, nodes with good income may have 100 million yuan a year.
Learn about the Cosmos project, recommended reading
"Written on the eve of the launch of the cross-chain project Cosmos"
Block Rhythm BlockBeats sorted out the information of the current mainstream PoS projects. At present, IOST should be the highest. In the case of not counting contribution rewards, the annual rate of return of nodes is about 16.74%. Loom, which has no additional issuance, relies on the 300 million tokens retained by the official to reward validators, and distributes the remaining 20% every year, just like Cardano.
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Calculation time: early April 2019In addition to the above 5 PoS projects, there are dozens of PoS blockchain projects that can also be used as nodes to earn income, and there are also many star projects that will be launched soon, such as Cardano, Polkadot and so on.》
This business seems to be profitable without losing money, and it has spawned many teams dedicated to node operations and consulting services, and many wallets have begun to provide mortgage services for PoS blockchains. For example, BlockBeats has interviewed many teams engaged in PoS node services, some of which provide governance solutions for the PoS public chain, and some provide mortgage income services.
To understand how much money a PoS node team can make, it is recommended to read "
Let the node team tell us how much money can be made as a PoS node?
