!!! Important - If you decide to invest in crypto, make sure you have your own hardware wallet that provides you the highest form of security. - Not your seed, not your crypto!!!

Proof of Work

All of the transactions on blockchains are locked into blocks and the blocks are placed after each other. That's why this technology is called blockchain. Because when you imagine it or project it on a paper, it would look like a simple chain. But we are talking about Proof of Work. So what is it?

Some of the cryptocurrencies - for example Bitcoin - make matches between computers/miners. Each of the computer wants to win the match and the reward is a piece of bitcoin, which means the owner of the computer/miner earns money in Bitcoin, if wins. This matches keeps the network alive. What is the match about?

The computer system must close the transactions and the first computer which finds the correct formula and result of closing the transaction is winner. When the transaction is closed, it's sent to a block and after many of the closed transactions, the block is closed as well. The time of the closing of the blocks and transactions is variable because not everybody pays same amount of money for the transaction or there can be another process that makes it faster or slower :) After the block is closed, new block starts and the previous block is locked forever and nobody should open it.

And now what happens? Probably everyone knows all computers burn electricity. So when the computers are counting the transactions they burn electricity. It simply means, they show us proof of work just like people who work and produce a product. I like this because it's real work which consumes electricity but together with it, the work produces heat as well, so it can be used as heater made of recycled "work". Yes, this process cost a lot of electricity and it is more and more difficult for the computers. However, the blockchain still does not have branches like for example our recent system. So this is about Proof of Work and I believe it's understandable.

Proof of Stake

1st at all we will talk about language. Why? Because this is a mechanism that is based on consensus.

What is consensus? Imagine a group of people who want to create a new product. Probably they need to vote about how to start and even about the concept. So, the consensus simply means this: More than 51% agree with each other. The voters are the nodes that help us to develop the network. And they vote as same as people. 51% of the votes are same = ok, the transaction is ok and we can let it pass through the chain. And again, this is pure democracy.

Let's start with classical financial concept which is here for ages. And we are gonna talk about the dividend world. Every shareholder having a share of a dividend company gets free cashflow from the company. And after the shareholder can decide what to do with the dividend money. Eighter to spend it for coffee or to reinvest it helping the company to grow or at least to keep it in conditions to continue their business

Now, we will transcript the into cryptoworld. In case, you are a staker, you are investing in a crypto project that can bring you freecashflow in cryptocurrencies.

And now what? This is exactly same principle like classical financial market and when reinvesting or using the crypto cashflow for your needs.

The question is - How to choose a good project to stake? And again the same principle like (my)DIVI-RAIN strategy and we will call it © (my)CRYPTO-RAIN Strategy ©.

I believe it is easy to understand. Well, evolution is part of nature and we can't stop it by kicking around like little kids and yelling on it :)

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