In these series of posts, I'm going to get to the key points really quickly to explain why I think #SwiftCash is the best altcoin or alternative to Bitcoin. In the first episode I wanna talk about the difference between Proof-of-Work and Proof-of-Stake mining algorithms and why Proof-of-Stake is superior. Bitcoin mining is done via an algorithm known as Proof-of-Work. I believe this is a misnomer because the work is done by computers. It's not human labor which has been the foundation of the right to create money for centuries. So who can mine more bitcoins today? Those who work harder? Nope. Those who have stronger computers. And who can afford stronger computers? Well, those who have more money! So Bitcoin mining ultimately comes down to Proof-of-Stake if we're honest about it.
Putting the label being a misnomer aside, Proof-of-Work mining algorithm allows those who have stronger hardware to take the new Bitcoins. There is of course an element of luck involved in the process but generally speaking, those who have a strong hardware, tend to take more Bitcoins than anyone else who might be trying. The rest have to buy with their hard-earned money! Proof-of-Stake on the other hand, leaves the competition up to your stake in an equal and fair fashion. That means anyone who has coins can mine more coins. So first you buy, and then you can multiply your coins by participating in the mining process. You won't need any special or expensive hardware to participate in the mining process. And what's fascinating is that this algorithm secures the network in the same way the Proof-of-Work algorithm secures the network, but with a fraction of the costs.
Did I mention that the mining algorithm of SwiftCash is based on the Proof-of-Stake algorithm? I can go on and on and on about the things that make the Proof-of-Stake algorithm superior to Proof-of-Work. But I wanna recap the benefits in three bullet points and end the first episode.
1. The mining process costs miners way less - usually over 99% less
Why does this matter you might ask? It's really simple. Imagine investing in a business that costs $1,000,000 a year to run vs. a business that only costs $10,000 a year to run. Which one do you feel more comfortable investing in, assuming they both deliver the exact same product/service?
2. It gives the inflation to stakeholders as opposed to outsiders
With Proof-of-Stake mining, inflation goes to those who are invested in the economy as opposed to those who may or may not be. Why does this matter you might ask? If you were to invest in an inflationary economy, would you feel more comfortable investing in an economy that gives its inflation to those invested, or one that gives its inflation to outsiders?
3. Rogue miners need to first invest in what they plan to hack
With Proof-of-Stake mining, if there's a security issue that can be exploited by rogue miners, such as the common 51% attacks, rogue miners will have to first invest in what they plan to hack. Why does this matter you might ask? Imagine investing in a business run by businessmen who are themselves heavily invested in the business vs. investing in a business run by businessmen who aren't themselves invested in the business. Which group of businessmen are more likely to exploit the business they run, if possible? Which one would you feel more comfortable investing in?
That's it for my first episode. In my second episode, I'll be talking about one of the most important aspects of SwiftCash that sets it aside from all other Proof-of-Stake coins currently available in the market. And that aspect is known as HODL deposits which imitate long-term deposits in the traditional banking systems. Stay tuned!
Episode 1 | Episode 2 | Episode 3 | Episode 4 | Episode 5