Are you familiar with the terms PoW and PoS?
If not read the following explanation to find out how cryptocoins can be created using proof of work and proof of stake.
In proof of work based mined coins are created using expensive hardware that performs mathematical calculations. If your hardware is fast enough you can mine lots of coins.
In proof of stake based mining coins are created by having shares (“stakes”) of a currency – the more you have the higher the chance that you will get the next mined block reward. You can run a proof of stake miner simply by running a coin wallet with coins inside on a low cost computer.
In VARIUS, the value of the PoS block reward you get is calculated by giving you 365% annually – since the last time you got a reward.
Benefits of Proof of Stake mining
If you would have been PoW mining coins instead of staking you would need a higher initial investment. Lets say you pay 6000$ just to get started with a graphic card mining rig. Also the rig needs to be hosted at a secure location that has lots of cheap elecricity. If one graphic card breaks down you need to pay hundreds of dollars to replace it.
If you run it at home you will most likely have high elecricity costs and it needs a dedicated room with good ventilation because it produces a lot of noise and heat. If you care about the environment you should think about all the energy the mining rig uses to produce coins.
On the other hand with staking coins you can run the wallet on a low cost computer or even a small server – for example you can rent a linux server on Vultr.com for 5$ a month which has enough power to stake 24/7 for you. Or just use a staking where they run everyting for you. Click here so see a list of supported pools.
If you need help with setting up your staking wallet, you can just contact us and we will help you.
The VARIUS approach
For our coin we use a hybrid approach – so people can mine blocks using PoW and PoS mining. We want to give everyone the chance to mine coins, no matter if they can afford and host expensive hardware or just small amounts of coins.