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EURK Pilot Test Smart Contract is unavailable for security reasons as of 2nd of April. Therefore, EURK will not be available for buying, selling, and exchanging until further notice.
The problem is being resolved by our team of technicians.
We sincerely apologize for the inconvenience caused.
For assistance and/or to report any incident, please contact our dedicated support team at [email protected]
Please stay tuned and await further updates.
EURK Team
The "blockchain trilemma" is the problem that blockchain technology has had for a long time for making the system secure, decentralized, and scalable all at the same time, and pure proof-of-stake (PPoS) and other types of consensus mechanisms help the system solve these issues.
While previous consensus mechanisms like proof-of-work were successful in some aspects, they fell short in others. Pure proof-of-stake represents an innovative approach that aims to solve this trilemma as a type of proof-of-stake (PoS) consensus.
Silvio Micali, a renowned cryptographer and recipient of the Turing Award, created the pure proof-of-stake consensus mechanism, also known as PPoS.
PPoS builds upon the popular proof of stake concept by introducing randomness to selection that helps achieve the holy grail of decentralized networks: security, decentralization, and scalability all at the same time.
Algorand blockchain uses pure proof-of-stake (PPoS). It is a consensus algorithm that uses minimal computational power. This feature makes it energy-efficient, secure, and scalable, as PPoS eliminates the need for miners, making the blockchain faster and more decentralized.
Join us in this blog as we explore PPoS and its differences with other types of consensus mechanisms in detail. To understand how PPoS works, let's first examine traditional blockchain proof-of-stake and the limitations it poses in achieving the blockchain trilemma!
Sortition is a method that PPoS uses at random to choose validators based on their Algo tokens. Validators form a committee and take part in the process of creating blocks.
The most widely supported proposal is added to the blockchain, and validators that contributed to this process get Algo tokens as a reward in return. Let’s explain in more detail!
PPoS consensus follows a three-stage process to finalize each new block:
By selecting participants randomly for each stage, PPoS protocols like Algorand blockchain achieve unpredictability and censorship resistance.
No one can trick the system by accumulating stakes, and attackers have no fixed targets. Therefore, this system provides security for the system to continue to function.
Additional benefits of PPoS include rapid transaction finality and high throughput without compromising on decentralization. Algorand can process more than 1000 transactions per second due to these features.
EURK is a safe, audited, and 1:1 euro backed stablecoin that is created on multiple blockchains. It supports innovation while also being reliable and efficient.
Additionally, EURK works well on PPoS networks because they are fast, safe, and can handle a wide range of validators. EURK's transparency further complements PPoS protocols.
Both proof of stake PoS and pure proof of stake require staking coins or tokens to participate in block validation; however, they differ in important ways:
Because of these differences, pure proof of stake has advantages in decentralization and resilience that help networks that work on a large scale and offer strong security guarantees. The euro stablecoin EURK reflects these attributes with its secure, transparent, and reliable features too.
As a reliable stablecoin that is 1:1 pegged to the euro, EURK has reserves both in Switzerland and the Dominican Republic. Therefore, it additionally provides high liquidity too.
To ensure the integrity of the blockchain, cryptocurrencies employ a process called proof of work to validate newly added transactions and keep the system secure. In order to verify and add new blocks of transactions, cryptocurrencies rely on a decentralized network of participants known as miners.
Miners compete to solve math puzzles, which is what "work" in proof of work means. The winner gets a new coin. When miners successfully validate new data, they are rewarded with cryptocurrency.
In decentralized networks, this consensus method lets anonymous entities trust each other. This mechanism heavily relies on the Bitcoin network. Therefore, PoW is really different from PPoS. You may also check “proof of work vs. proof of stake” for further comparison.
Here are the key differences between PPoS and PoW:
In fact, 85% of people in India do not have access to banks. So an inclusive cryptocurrency with minimal barriers and costs, like EURK, has great utility in emerging markets worldwide. PPoS seems like the ideal foundation.
Delegated proof-of-stake (DPoS) systems also employ coin staking but differ from PPoS in their governance model. With DPoS, token holders elect a set of witnesses or delegates who produce blocks on the network under a mining-like framework, centralizing authority. In contrast:
Overall, PPoS protects blockchain infrastructure from coordination without giving up decentralization like DPoS protocols do. This makes cryptocurrencies even more censorship-proof tools for the 30% of people in East Africa who have never had a bank account.
Bonded proof-of-stake (BPoS) is similar to PPoS in tying validator selection to coin ownership but differs in its bonding model. Validators on a BPoS chain must deposit a bond that can be slashed for negative behavior. While bonding deters attacks, it also discourages participation and user sovereignty.
With PPoS:
A euro stablecoin like EURK, securely issued and audited by Cryptobunq, which is a secure one-stop shop crypto service provider, maintains all conveniences for transacting without compromising the random, full participation properties intrinsic to PPoS.
Many arguments exist that PPoS provides advantages over standard PoS protocols in terms of decentralization, security, and resilience against coordination attacks.
However, PoS blockchains are far more established and tested at this point. We still don't know how secure PPoS will be in the long term compared to PoS designs that are updated in small steps.
This is because both models are still being developed. For now, PPoS has distinct advantages in accessibility and decentralization that make it well suited especially for decentralized applications favoring full participation.
While both proof of stake and pure proof of stake require staking coins to participate in block validation, they differ in their selection processes and the predictability of validators.
Pure proof of stake takes the best parts of PoS-based validation and adds a new way to generate random numbers using cryptography that can be checked.
This gives PPoS ledgers certain advantages, like maximizing decentralization, minimizing barriers to participation, and enhancing resilience against coordination attacks.
Protocols like Algorand demonstrate how PPoS can deliver rapid, low-cost transactions with strong decentralization guarantees for mainstream usability.
While standard PoS continues to evolve as well, PPoS looks primed to play a leading role in powering public blockchain infrastructure with its unique consensus design.
While PPoS is a promising consensus mechanism for the future, EURK is a promising digital asset type as a stablecoin and is considered the future of money.
Due to its security and consistent value, EURK is one of the favorite stablecoins among many crypto investors. If you want to learn more, become a partner and start to explore how EURK can grow your business!
