- March 20, 2019
- Posted by: giancarlo
- Category: News
In its latest weekly digest, published on March 18th, weekly cryptoasset-focused institutional publication Diar noted that a number of proof-of-stake (PoS) crypto projects are set to launch this year, continuing an industry-wide trend.
According to the report, six major PoS-based projects will launch in 2019, highlighted by the debut of Cosmos (ATOM), which raised $17 million in its initial coin offering (ICO) in 2017. In 2016, Cosmos developed the concept of blockchain interoperability — the ability of blockchains to interact and integrate with one another; in other words, allowing blockchains to communicate with one another — and just last week, the company launched its mainnet.
However, besides Cosmos, more than 70 projects that employ some version of PoS have had an average of 40% of their token supply engaged or delegated. With EOS, which accounts for about $1.8 billion, the total of PoS coins staked is about $4 billion, despite the fact that their mainnet launch experienced some setbacks on account of low staking participation. Besides EOS, rounding out the top ten in terms of total USD staked, according to the report, are Dash, Cosmos, Tezos, NEM, Tron, Waves, Lisk, Decred, and Ontology. Of that list, Tezos (81%), Lisk (58%), Dash (54%) had the highest percentage of their supply staked.
A number of cryptos use PoS in some form — some are PoW-PoS (proof-of-work proof-of-stake) hybrids, for example — wherein participants in the network prove they own a certain number of tokens in order to facilitate network’s consensus mechanism. Instead of receiving a block reward, as is the case in PoW (employed by Bitcoin), participants receive a network fee as a reward. In general, PoS is known to be much more cost and energy efficient than PoW, as well as less centralized, but it is also a newer mechanism, and as such is less proven. However, in light of the Diar report, it seems it will continue to be tested and iterated upon.