A Brief History of Crypto Currency Cryptocurrencies such as Bitcoin are frequently catching the public eye due to the massive swings in value. That being said digital currency is an ever-growing alternative to the conventional means of commerce we are accustomed to. Cryptos are now becoming so popular that they pose a serious threat to financial institutions and monetary policy. It has been more than a decade since Satoshi Nakamoto mined the genesis Bitcoin block and started the digital currency revolution. BTC changed the landscape of world economics by eliminating the need for a middle man during a financial transaction. Rather than a bank or some other centralized institution validating transactions the users of Bitcoin validate transactions in a decentralized manner. Because BTC is digital and decentralized people have the freedom to exchange value without a go-between which leads to more control of the funds and much lower fees. Bitcoin is controlled by owners, not banks. We all know the U.S. Dollar is the reserve currency for the global economy, so any normal mainstream financial transactions happening at any given time are based on the dollar. This is the reason the U.S. has become a world power and allows the U.S. to impose economic sanctions on other countries or “rogue” nations anytime they step out of line. Cryptocurrency transactions have nothing to do with the US dollar and do not need to be connected to it at all. BTC makes it possible for financiers to participate in the global economy with a way around stringent U.S. economic policies. Close to 2 billion or more people on Earth don’t have a bank account, and in many countries around the world, businesses still cannot accept credit card payments. For people in the third world and developing, countries Bitcoin gives them the chance to participate in the global internet economy. Now the commercial market has started to adapt as well with companies like Tesla offering BTC and Ethereum as a way to make purchases through their companies. Some fast-food giants like McDonald’s and Burger King are even looking for crypto transactions through the website and on-site purchases. Even entire countries have adopted BTC as their official currency. El Salvador was the first country to make that move on June 9th 2021 with the passing of the so-called “Bitcoin Law” which was originally proposed by President Nayib Bukele and passed the nation’s legislative body with a majority vote. This means that Bitcoin must be accepted by all vendors, shops, markets, stores, restaurants as it now legal tender in El Salvador and can be exchanged for any goods or services. While Bitcoin started the crypto craze there are plenty of other digital currencies available that may not have the market cap of BTC but can still make crypto traders a profit. Crypto Proof of Stake Mechanism Cryptocurrency: The Proof of Stake Mechanism One of the biggest challenges facing anyone who wants to invest in cryptocurrency is how to choose which one is worth your time and money. Hundreds of digital currencies are available, and new ones emerge almost daily. Many of these altcoins tout themselves as being faster, cheaper, more secure, or more decentralized than competitors. But how do you know which ones have real value? The answer lies in understanding the proof-of-work Mechanism vs. proof-of-stake Mechanism debate. This article will explain the proof of stake and proof of work, why it matters, and other essential things you need to know if you want to invest in cryptocurrency wisely. What is Proof of Stake? What is proof of stake? The idea of proof of stake is to replace “proof of work” with a new model for validating transactions. Miners solve complex mathematical problems to confirm transactions and create new blockchain blocks in proof of work. With proof of stake, network validators (“stakers”) are chosen randomly (i.e., by lottery) to confirm transactions and create new blocks. The greater your stake (i.e., the amount of cryptocurrency you own), the greater your chance of being chosen as a validator. It’s important to note that proof of stake does not replace proof of work entirely but acts as a supplement. This means that blocks are validated by both mining and proof of stake. The purpose of proof of stake is to improve network speed. Since mining with proof of stake is cheaper and faster than mining with proof of work, the idea is that validators will be able to create new blocks more quickly. How Does Proof-of-Stake Work? The way that a proof-of-stake system works depends on the specific cryptocurrency. On a general level, though, you can think of it as electing a group of representatives who confirm transactions and create new blocks on the blockchain. The elected representatives are the “stakers,” and they are chosen by lottery (or random selection process). The odds of being elected increase with the number of assets a person is staking on the network. Once elected, the stakers confirm transactions and create new blocks for the blockchain. The more often a staker is selected, the greater the person’s overall influence will be on the network. Once a staker’s term is up, there is an election to determine who will take over the position. The system is designed so elected stakers are disincentivized from malicious behavior (i.e., they will lose their jobs if they attempt anything illegal or unethical). Pros of Proof-of-Stake The most significant advantage of proof of stake is that it’s far more energy efficient than proof of work. With proof of work, miners have to solve complex mathematical equations to create new blocks and verify transactions. This requires a tremendous amount of energy and computing power. This is problematic for a few reasons. First, a massive amount of energy is used across the entire network. Second, it makes the whole process incredibly expensive. Staking, on the other hand, requires no energy at all. Instead, it simply requires that participants hold a certain amount of the blockchain’s native token. While burning