CloakCoin and the Proof of Stake Alliance
The Positive Benefits of Extending Your Team
CloakCoin takes teamwork to the next level by consorting with a crypto community dedicated to enhancing blockchain’s Proof of Stake consensus mechanism.
While it only takes one brain to generate an idea, it often takes a coordinated team effort to convert thought into reality.
And speaking of thoughts, unfortunately, tribalism is rampant in the cryptoverse. There’s plenty of room for everyone here, yet the infighting continues.
Look to all the bitcoin forks as examples. How many are there now? We stopped counting at SV/ABC/123/U+ME.
But what the naysayers and finger pointers fail to realize is that the “us vs. the world” mentality is not only counterproductive but also makes crypto extremely confusing to newcomers. Which one is the ‘real’ bitcoin again?
Energy wasted on pitting one blockchain project against another is much better spent on cooperation.
Sure, in the eyes of any respective team, they are the best. After all, you don’t align yourself with an organization unless you believe in its core ideology and ability to achieve goals.
However, if blockchain and crypto are to advance and grow and continue to innovate, we need to take the boxing gloves off and start dishing out some digital hugs.
Some of the world’s brightest minds operate within the blockchain space, but all the mudslinging imparts a dull impression.
CloakCoin is choosing cooperation over competition as members of the Proof of Stake Alliance. But before we get into the benefits of alliance membership, let’s define Proof of Stake in the first place.
Even Vegetarians Can Enjoy Proof of Stake
Although proof of steak is a time-honored backyard BBQ tradition, Proof of Stake is more filling. For your physical and digital wallets, anyhow.
PoS rewards come in two forms:
When you must prove your work on a blockchain — as bitcoin miners do — you’ll need specialized hardware designed to compute and compute, 24/7. These rigs are costly and consume heaps of energy.
As they solve complex equations, miners gain rewards at random — the right to forge a new block. Bitcoins are essentially ‘minted’ from expensive, energy-hungry equipment solving puzzles.
But PoS uses a different approach.
PoS mechanisms reward HODLers. The process is as simple as downloading a wallet and stashing coins inside — essentially becoming a block validator on the network.
Unlike bitcoin’s Proof of Work consensus, PoS uses minimal electrical power. You can easily run a PoS wallet on your PC or Mac — something you already use anyway, not something you need to go out and buy.
And cost-savings are only one side of the coin…
2) Interest-Bearing Goodness
While bitcoin miners are hard at work creating new coins, keepers of CloakCoin are relaxing. You see, there are no CloakCoins to mine because our full supply is already in circulation.
And by merely holding onto CloakCoin, you’re helping to keep our network safe and secure. And your wallet helps validate blocks.
And we’re happy to reward you for that!
PoS mechanisms pay HODLers in the form of the project’s native coin or token. In our case, CloakCoin owners gain 6% annual rewards deposited into their CloakCoin Wallet.
The reward process is random — just like bitcoin’s PoW, you’ll need to win a game of ‘crypto lotto’ to earn the honor of putting a new block on our chain.
Now, the more coins you hold, the faster you’ll gain your rewards. However, our system is still fair to everyone and capped at 6%. If you hold only 1 CloakCoin in your wallet for an entire year, you’ll have 1.06 by the end.
Now that you’re up to speed with what PoS involves let’s get into how a group of blockchain allies works together to push the PoS space forward.
Teamwork is the name of the game in the blockchain space. Well, the same can be said about nearly any endeavor, really.
No matter your mission — unless maybe you’re trying to spice up a batch of soup — the more people on the team, working towards a common goal, the better.
So what’s the overall goal here? Rather than speak on behalf of the entire Proof of Stake Alliance, we’ll leave their exact words intact:
"The Proof of Stake Alliance is a group of developers, researchers, advocates, projects and businesses that have come together to improve and promote the use of Proof of Stake as a consensus mechanism."
The main takeaway here is ‘blockchaining’ of the minds. If one team encounters a roadblock, six other teams — along with their underlying skills and resources — are ready and willing to help.
You’ve no doubt heard the adage, “Rome wasn’t built in a day.” And it most certainly wasn’t built by one person alone.
Unlike the intimidating PoW with its high-powered gadgetry, PoS wallets are as simplistic as downloading an app. If you can operate a program like Excel or Word or even Solitaire, you can run a crypto wallet.
And the same simplicity is what’s needed before widespread crypto adoption takes place. PoS levels the playing field by making crypto rewards readily available to almost everyone.
Once word gets out that PoS coins reward users with interest rates far higher than any bank currently offers, crypto enthusiasts will flock to Proof of Stake projects.
And as a program turning five this year, we’re at the forefront of the upcoming surge in interest.
Staking rewards alone are enough to draw no-coiners into the land of crypto. But mix those rewards with untraceable transactions and you’ve got a powerful combination of convenience and privacy.
By pooling our efforts with the other projects in the POS Alliance, CloakCoin is part of an extended family working to enhance Proof of Stake consensus.
And you know what they say, “Together Everyone Achieves More.”