Proof-of-Stake (POS) is a cryptocurrency consensus algorithm used by blockchains such as NEO and Decred.
With PoW coins like bitcoin, miners who contribute computational resources to the BTC blockchain receive rewards. Conversely, with PoS coins, transaction processing is undertaken solely by holders of large volumes of tokens. Network integrity is, therefore, guaranteed by the fact that people holding coins have a ‘stake’ in preserving the integrity of the blockchain.
So, if you plan to HODL a coin for the long-term, you can stake it and let it accumulate interest for you, rather than just wait for the value to appreciate. If the value appreciates and you earn interest in the form of more cryptocurrency then it’s a double bonus!
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