Switching ETH from POW to POS algorithm

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The Proof-of-Work (PoW) to Proof-of-Stake (PoS) transition for Ethereum is about to happen. For an account-based system like Ethereum, this stage of corruption is expected. The fact that people, including big investors, believe PoS would enable Ethereum to scale is wonderful.

Switching ETH from POW to POS algorithm

Why so? This kind of transition is scientifically inconceivable because scaling is impossible for an account-based system.

What Is PoS (Proof of Stake)?

PoS is a consensus mechanism in cryptocurrency that allows transaction processing and thus, creates new blockchain blocks with unique hash codes. Basically, the consensus mechanism is a means to validate a transaction and keep the blockchain safe.

The proof-of-stake technology allows cryptocurrency owners to validate transactions based on how many crypto coins a validator stakes.

This mechanism is a good alternative to PoW (proof-of-work) mechanism ‒ you can easily call it the original consensus mechanism that allows for validating transactions and, thus, adding new blocks.

The difference between these two principles is massive:

  1. PoW mechanisms relied on miners digging out unique cryptographic sequences. With that ensure each new transaction took a long time to get validated because sequences took a longer time to get discovered, or mined.
  2. PoS doesn’t have a technical background like that. Instead, this mechanism needs a validator to hold and stake tokens instead of “proving” them with unique code sequences.

Sure, PoS seems a less secure technology due to the potential vulnerability of the network, but all in all, it has a huge benefit of transaction speed.

Why Is Ethereum Switching to Proof of Stake?

For Ethereum, switching to PoS is more like killing the fundament of Ethereum technology that was originally based on mining. So, why would the developers do it?

Proof-of-Work (PoW) to Proof-of-Stake (PoS) transition

The reason is quite logical ‒ PoS validation requires less energy. While miners spend gigawatts of energy to solve cryptographic puzzles, PoW requires one hundred times less energy to hold the system together without losing any profit. Also, spending less energy means spending less money on paying for that energy ‒ plain logic.

It’s an energy-saving and, you could even say, more environment-friendly alternative to proof-of-work validation.

Crypto listing on P2B exchange

Your token, regardless of the blockchain technology it operates on, can be successfully listed. Crypto listing is a very important stage in your crypto project’s life ‒ it allows you to enter a bigger cryptocurrency market and grow the value of your token.

Also, a crypto exchange listing proves to your investors that their money will not be wasted. Listing a token equals confirming its liquidity, as no crypto exchange platform would list a token with uncertain liquidity.

You might want to start boldly at a well-known tier 1 crypto exchange platform like Binance. It makes sense ‒ people buy and sell Bitcoin there in big amounts, and a huge variety of tokens and coins are present for a huge community to trade. However, tier 1 crypto exchange platforms tend to have high requirements for listing, so unless an all-powerful team backs your project with a budget of numbers with 6+ zeros, it’s only logical to start at a tier 2 exchange platform first.

P2B is a tier 2 crypto exchange platform that helps your token to gain more value, attract more investors, and grow a big and loyal community around your project. After you achieve noticeable success on a tier 2 exchange platform and your token becomes more well-known, you can try to list at a tier 1 platform because nothing is impossible.

The benefits of listing with P2B include:

  1. Faster listing. The P2B team tries to list new tokens in just three days ‒ with that, you can spend more time on further project development.
  2. A tightly-knit community. The P2B community is very loyal to the platform and new projects that get listed on it. Listing with us, you can potentially grow your customer base and make your crypto token better known in a crypto community.
  3. Important services for your success. We don’t just list your token and call it a day. Instead, we offer vital promo services to raise awareness about your token: marketing, market-making, influencer marketing, and other promotion services.
  4. It’s easy! Listing on P2B is simple: all you have to do is apply for it, have a meeting with our managers in Zoom or any other platform you feel comfortable with, and then prepare a short list of documents to complete the process.

Listing is a huge part of your crypto project’s success ‒ make sure you’re doing it right.