What is POS Staking Mining (SGB Staking Mining Tutorial)

What is POS Staking Mining?

Why is POS Staking Mining necessary?

Ethereum’s PoW (Proof of Work) consensus mechanism operates by running every block validator in the Bitcoin blockchain as a network participant. This is similar to how POW works, where every transaction needs to be rewarded and paid to the node operators (node operators). On the other hand, POS can ensure that the entire system is in a consistent and secure state. (Note: POS is a proof of stake mechanism)

The core idea of the PoS mechanism is decentralized storage. It uses encryption technology to make commitments to data ownership and control to improve security, thereby avoiding hacker attacks or malicious tampering. Due to its unique characteristics, anyone can execute operations through smart contracts, such as creating new wallets, sending transactions, etc. However, due to the anonymity of the blockchain, it does not support other types of wallets. There are also some disadvantages, such as the inability to track assets in an account, and so on.

In order to allow more people to participate, using the POW algorithm, users only need to set their own addresses on different chains to achieve this. Currently, most POW algorithms are mainly supported by ETH, and only about 3% of the network’s active participants. For these early adopters, POW will be a relatively small token project, but if necessary, this part should be transferred to other protocols.

Therefore, we assume that the POS miners must contribute 100 tokens for each new block. Then they will receive a corresponding amount of new tokens. Once a forking event occurs at some point, it will automatically trigger another hard fork. When a new split occurs, they will have to take some responsibility. This means that all stakeholders will be affected by the economic losses caused by holding newly issued Tokens.

Over time, a large number of PoW consensus mechanisms have passed their half-life. The most serious problem is that POW miners do not have enough time to process their transactions. This makes the PoW miner more reliable and efficient. On the other hand, POS Staking Mining also provides better incentives and reduces the impact on the network. What are the advantages of POS Staking Mining? First of all, the innovation of this technology is to solve the energy consumption problem of PoW, which is a special design of PoW that allows mining pools to directly sell their electricity to users to maintain the network. In addition, POS miners do not need to purchase mining equipment from third parties to complete this task, but choose to join the network with partners they trust.

Secondly, POS mining can promote the development of PoW mining industry, such as increasing computing power, improving yield, and reducing costs to attract more miners to enter, and expanding the scale of the ecosystem through continuous upgrading, promoting the entire network to achieve efficiency.

SGB Staking Mining Tutorial

According to official news, the SGB Staking Mining Tutorial has been released.

Users can use SGB for SGBAP staking (currently supports BTC, ETH, EOS) to earn SGT rewards; they can also pledge SGSBT on Huobi for income and deposit it directly to FTX to enjoy trading fee discounts.

Specific operations: First, users need to stake their SGBAP to the contract address, then click “Stake Now.” If the staking cannot be completed, they need to wait for one or two days. Then they can choose whether to continue staking. Only when the earnings reach the minimum point can they start earning interest.

For users who participate in SMB staking mining, it is recommended to first take out 100 SGL from the wallet and exchange them for 10 BTC, 1 SGB = 1 BCH. The remaining 20 can be withdrawn.