The members of the crypto community come with many expectations in 2020, as it could be the year of the Participation Tests (PoS). This conclusion was reached because two releases of these Blockchain algorithms are scheduled for the first quarter of next year.
Two of the most anticipated PoS have their launch date for early 2020; These are those belonging to Ethereum and Cardano. It is important to mention that both had ventured into this sector before, so they expect great improvements in their new versions.
Before continuing, it is necessary to specify what is the Participation Test, or Proof of Stake in English. This term identifies the consensus search algorithm for blockchain-based cryptocurrencies.
Its objective is to reduce the energy consumption generated by other protocols, such as the famous Proof of Work or PoW, one of the most used in the industry.
In order to access the Participation Tests network, the «validators» must have the digital currency they are verifying. There is no mining, so the use of electricity for this activity is also reduced.
PoS supporters say it will make the system more scalable, sustainable and secure, compared to PoW-based systems. They also admit that it is a technology with a lot of potential, which still has much more to offer. Otherwise, the big industry would not have their eyes on this algorithm.
The world's second largest blockchain platform by market capitalization, Ethereum, has been looking to change its system to one based on Participation Tests since 2014.
In fact, Vitalik Buterin, one of the co-founders of Ethereum, sees the PoS as the key element for the platform to reach maturity.
Cardano's PoS
For its part, Cardano is not trying to simply launch a new PoS system. His real plan is to update his own pre-existing platform as a public network.
According to Charles Hoskinson, CEO of IOHK (Input Out Hong Kong), the company behind Cardano, the public network will have 100 times more people running its software than Bitcoin, Ethereum or any other PoW system.
One of the biggest advantages of Participation Testing is that, instead of relying on energy to increase the network, as in PoW, PoS systems depend on internal incentive mechanisms.
For his part, Staked's founder and CEO, Tim Ogilvie, said they were very excited, as well as much of the crypto community, about the launch of these innovations.
