As the first cryptocurrency to enter the market back in 2009, it is no surprise that some may wonder if the technology behind Bitcoin (BTC) is outdated.
At the time, the technology used by the Bitcoin (BTC) blockchain was revolutionary. Proof-of-Work showed the world that banks and institutions were not necessary to facilitate transactions and that they could be done completely anonymously, through a decentralised network.
However, in today's crypto market, the Proof-of-Work system has found itself falling by the wayside, as more projects opt to use the Proof-of-Stake system. Projects like HUH Token (HUH) elect to use this system for a multitude of reasons, stating the benefits of this validation system over Proof-of-Work.
But what is Proof-of-Stake? And is Proof-of-Work still worth considering for upcoming projects?
What Is Proof-of-Stake?
Validation systems are the protocols in place for the proofing of data sets to enter the blockchain. This data, which is collected in blocks, must be validated by the computers on the network before being added, as due to the permanence of the ledger the information collected must be correct.
In Proof-of-Work, any computer can become part of the network, with the reward for being the machine to validate the block first being a fraction of the coin built on that blockchain. This reward system is also seen in Proof-of-Stake, however, what separates these protocols is that in the latter system only machines with a stake in the blockchains coin can participate.
There are many benefits to this, which are highlighted by the new project HUH Token (HUH).
Firstly, by having fewer machines fighting for rewards in the system, validation can be done quicker, and with less energy output. This typically results in transactions that are faster and more affordable than those undertaken by Proof-of-Work.
For a new token entering the market like HUH Token (HUH), having these qualities is essential to have any chance of success. With the saturation of projects out there, users and investors have more choices than ever before as to where they put their funds, making a cheap and efficient transaction system a great key selling point.
Secondly, as a result of this, the Proof-of-Stake system can more often than not process more transactions per second than Proof-of-Work. This means that, for projects like HUH Token (HUH) that expect massive bumps in users, their system will be able to handle the additional strain.
As a project utilising social media influencers with a roadblock scheduled this week HUH Tokens (HUH) marketing strategy means that in their early stages users are likely to come in droves during influencer marketing periods. This means that the system must account for these shifts, which Proof-of-Stake does.
It is a very exciting project, and one not to miss.
What Are The Benefits of Proof-of-Work?
This isn’t to say that Proof-of-Work is dead. The system still provides many benefits, including unparalleled security thanks to the huge network of machines at work. The system can also be argued o be even more decentralised than Proof-of-Stake, as participation in the system is open to all, rather than just a select few who already have a stake in the token.
This means that Proof-of-Work, in theory, can make anyone money with the right technology.
The Failures of Bitcoin (BTC) Proof-of-Work
The primary issue with Bitcoins (BTC) Proof-of-Work system, therefore, is not in the technology itself. The issue comes from the sheer amount of traffic the system receives.
As the most successful cryptocurrency by market share, it is no surprise that many crypto miners turn to Bitcoin (BTC) when deciding which coin to validate. However, what this has led to is a rapid advancement in machines used for this purpose, to stay ahead of the curve and gain the rewards.
Bitcoins (BTC) Proof-of-Work system has devolved into a technological arms race, where the average crypto user has no chance to get involved. More advanced technology requires more energy, and more machines mean longer transaction times, making for a system even more exclusionary than the average Proof-of-Stake network.
In conclusion, the fault does not lie with the Proof-of-Work system, but with the sheer popularity of Bitcoin (BTC). Without these high numbers, the system would be efficient, however, what Bitcoin (BTC) has proven is that the Proof-of-Work system is far less scalable than Proof-of-Stake.
Therefore, for new projects, the question of whether to use Proof-of-Work comes down to just how successful the project is perceived to become.
For more information on Bitcoin (BTC) and HUH Token (HUH), read this article.
Or, find out more at the following links:
Presale:https://presale.huh.social/
Website: https://www.huh.social/
Telegram: https://t.me/HuHToken
Twitter: https://twitter.com/HuhToken