After GSB Gold Standard Banking Corporation AG, based at the Port of Hamburg, presented its technical “G999” fireworks as a revolutionary block chain ecosystem and unique electronic money system, card device and app in one, inspired by the deflationary token economic model, which enables fast payments, micro fees and a variety of other options, including a communication network that guarantees customers absolute privacy, the novelty was not enough – the implementation of the BitCoin POS followed in the Principality of Monaco!
Who hasn’t heard of it and who doesn’t know the word “Bitcoin”? Well, for those readers who have never heard of Bitcoin, here is a brief explanation: “Bitcoin” is the world’s leading crypto currency based on a decentrally organised booking system. Payments are cryptographically legitimised and are processed via a network of computers with equal rights (peer-to-peer). In contrast to the usual banking system, no central clearing (authorisation and total monitoring) of all money movements is necessary. Proof of ownership of Bitcoin is stored in personal digital wallets. The price of a Bitcoin to legal tender follows the principle of stock exchange pricing, regulated by the general public and not by politicians or central banks.
The Bitcoin network is based on a decentralised database, the Blockchain, jointly managed by the participants, in which all transactions are recorded. Cryptographic techniques are used to ensure that valid transactions with Bitcoins can only be carried out by the respective owner and that monetary units cannot be issued more than once.
Josip Heit, CEO of GSB Gold Standard Banking Corporation AG, together with the developers of the BitCoin POS, then explained in Monte-Carlo (Monaco) what the latest developments on the subject of “Bitcoin (BTC)”, or even words like “Proof-of-Stake (PoS)”, are all about and explained: “Proof of Stake” refers to a procedure by which a block chain network reaches a consensus on which participant may generate the next block. A weighted random selection is used, whereby the weights of the individual participants are determined from participation duration and/or assets (the “Stake”). In contrast to the Proof of Work used by Bitcoin and Ethereum, Proof of Stake does not require time and energy-intensive mining and it is not possible to take over the network simply by possessing computing power (“51% attack”)”.
In this context, the innovative developers of the BitCoin POS in Hong Kong, Ma Compusoft Limited, expect to move to Proof of Stake (PoS) very soon, once the Ethereum (ETH) network proves the success of the algorithm. Bitcoin’s current proof-of-work (PoW) consensus algorithm is still a pioneering concept in this respect. However, this did exist and you should know this, but even before Bitcoin, it is now inseparably linked to the crypto currency, which is likely to change in the future.
The fact is and this can no longer be denied, the traditional fiat money could soon be history. Fiat money (US dollar, the euro, the British pound, the Swiss franc, the Russian rouble or the Chinese renminbi, to name but a few), this name comes from the Latin word fiat (“Let it be done! Let it be! Let it be!”) and is an object without any intrinsic value, which serves as a pure medium of exchange.
The opposite of fiat money is commodity money, here for example gold or silver, which in addition to their external exchange value also have an intrinsic value which is independent of governmental decrees as long as it is allowed to pay with it. Our current money is actually only paper, its monetary value – also called purchasing power – is in economics the exchange relationship between money and goods or services. If the national economies do not produce anything, the money is worth nothing, in contrast to gold!
Whoever buys a “BitCoin POS”, which has a higher value than the known fiat currencies, participates in a currency which cannot be manipulated by central banks through dictation. It is clear that Bitcoin is likely to move to a PoS system in the near future, because nowadays a large amount of energy is required (for Bitcoin mining) to keep the Bitcoin network running, so it is important to explore alternative consensus mechanisms.
However, in addition to the electricity problem and the related discussion about the protection of the environment through excessive electricity consumption, the current debate between “proof-of-stake (PoS)” and “proof-of-work (PoW)” is also about economic fairness, access barriers, network security and decentralisation. Bitcoin PoS solves these problems with a novel solution – namely by replacing the Bitcoin Proof-of-Work algorithm with a Bitcoin Proof-of-Stake algorithm. PoS does not require you to buy thousands of devices to generate more mining power. It is sufficient to simply have a deposit of “frozen” coins and receive a reward that is proportional to the amount you invest! PoS reduces electricity consumption by 99 percent!
Here BitCoin POS goes even further, because security is the main concern of crypto money advocates, investors, speculators and network participants. Who wants to lose everything because of a bug in the system? Bitcoin has just such a flaw – which is called centralization. Here, Bitcoin mining creates a paradigm of centralisation, which raises the spectre of a 51% attack. If such an attack were to occur, the entire network would be at risk with a value of billions of dollars. One can safely say that under such circumstances the Bitcoin network would be finished.
To this end, Bitcoin PoS, with its elegantly simple design, avoids the possibility of a 51% attack by converting the entire updated Bitcoin code base to “Proof of Stake”. While an attacker would have to control 51% of the network hash for Bitcoin, in the event of an attack on Bitcoin PoS he would have to control at least 50% of the token supply of the network, which is impossible even in the coming decades given the state of the art.
Whether and how these innovations are used or not, in contrast to the conventional financial market, depends on each individual. No currency can harm gold, because no matter how you twist and turn it, the net worth of gold has been proven for centuries.
For further information, please click here: https://www.bitcoinpos.net