Cryptocurrency LEOcoin shifts to Proof of Stake system
Posted: 2 July 2016 | LEOcoin | 1 comment
Digital currency LEOcoin switches from Proof of Work to Proof of Stake system in a bid to become more accessible…
LEOcoin, a cryptocurrency founded in Britain and designed for entrepreneurs, has today shifted from a combined system to a 100% Proof of Stake system. It’s founder’s vision for it to be the digital currency “for the mass market” is enforced by this change, which is designed to democratise the currency by lowering the barriers to entry, making LEOcoin even more accessible to everyone.
Many digital currencies, such as Bitcoin, rely on a Proof of Work system, or a combination of the two, which is how LEOcoin was operating before making the change. The Proof of Work model means a digital currency investor takes an active part in processing the ‘blockchain’ ledger by lending their computer power to the network to earn coins in return – a process known as mining. Given the processing power, expertise and expense required, these types of currencies are still largely the reserve of the technically minded.
Proof of Stake differs in that earnings are based solely on the number of coins that you hold, rather than the power of your computer. In practice, this means consumers can mine coins from their home computer without investing in any new hardware. The process is as simple as opening an e-wallet rather than having a dedicated ‘mining’ computer. The switch enables individuals who do not have the technical knowledge of mining to benefit from Proof of Stake rewards, not just those that are buying big machines to knock the smaller players out of the market.
LEO CEO and co-founder Dan Andersson reiterated LEOcoin’s ambitions “for a truly mass market digital currency, for the entrepreneurs, the small businesses, your aunties and uncles,” hailing the move to Proof of Stake as “another step on that exciting journey.”
Speaking about the potential of digital currencies for the future, Andersson continued: “At LEO, we have always said that this whole process should be as simple as clicking a button in your wallet to stake your coins onto the blockchain. Simply put, the Proof of Work model isn’t working anymore. The carbon footprint of running the current ‘mining rig’ computers is the same size as Cyprus. Proof of Stake thus provides an excellent green alternative, and puts power in the peoples’ hands. It also requires far too much spending on behalf of the user, who has to build expensive mining rigs.
“Digital currency has the potential to fundamentally revolutionise the way that business is done, but it can only do this by appealing to a mass market. By opening up this process to people, we now have a much greater opportunity to spread and build our economy.”