Re introduces a new use case for Ethena Labs' USDe and sUSDe stablecoins, allowing users to lock them as reserve assets to support global insurers via the Resilience Foundation.

The S&P 500 futures fell after a 0.17% dip Tuesday, pressured by Nvidia's drop and U.S.-China trade tensions. Gold surged past $3,240, rising over 6.5% as safe-haven demand spiked on US-China trade tensions and falling Treasury yields. Investors are watching Powell’s speech and retail sales data for further cues. The Coindesk Indices, which tracks the broader crypto market, are down by 2.10%, with Bitcoin and Ether down by 1.06% and 2.43%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is STRK, up 5.9%, following Argent's launch of Easy Bridging to simplify self-custody on Starknet.

Starknet (STRK), founded in 2018, is a Layer 2 Ethereum solution that uses zero-knowledge rollups and STARK proofs to scale transaction processing efficiently. 

, a feature that simplifies funding its mobile wallet by allowing users to send crypto from any chain, exchange, or wallet directly into Argent on Starknet. Powered by Layerswap, the process mimics a simple transfer: pick a token and chain, copy the deposit address, and send. Layerswap bridges assets using liquidity pools, making the transition from CEXs or other wallets to Starknet fast and frictionless. With no seed phrase, 2FA, low fees, and seamless UX, Argent is making self-custody on Starknet accessible to all.

Check out the latest prices, charts, and data of 

 a new use case for Ethena Labs' USDe and sUSDe stablecoins, allowing users to lock them as reserve assets to support global insurers via the Resilience Foundation. Users can earn up to 23% APY, including 5x Ethena rewards, while their capital helps underwrite health, property, business, and climate insurance. This connects crypto-native assets to the $1T+ reinsurance market, providing additional sources of returns and contributing to real-world risk coverage. Deposits are capped at $50M, with quarterly redemptions available.

Yesterday, BTC spot ETFs saw $38.2M in net inflows, all from non-GBTC funds.

, a decentralized edge AI platform backed by NVIDIA and Forum Ventures with $15M in funding, has launched a rewards system tied to an upcoming confirmed airdrop. Users can earn points by completing simple tasks after connecting their EVM wallet and social accounts. As part of CoinMarketCap’s Accelerator Program, ByteNova aims to support low-latency, secure AI applications. Early participation is encouraged to maximize airdrop eligibility.

Beginner

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Re unlocks new use case for USDe & sUSDe stablecoins, connecting crypto to the $1T+ reinsurance market

The megaphone pattern is a technical trading chart formation characterized by its distinctive diverging trendlines. Learn more about how it works here.

, everyone’s shouting from the rooftops about the next big trade to take in the ever-changing world of crypto. One such trading pattern that traders typically promote in the midst of volatility is the megaphone pattern. With its signature diverging trendlines, it’s a sign of sheer volatility and indecision for a particular asset, as traders with 

Curious as to what this entails in the grand scheme? Our guide to trading the megaphone pattern will teach you everything you need to know about what it, the various mechanics involved and the pros and cons of trading this pattern that’s come to be associated with volatility.

The megaphone pattern is a technical trading chart formation that’s characterized primarily by its distinctive diverging trendlines. 

Also known as a broadening top (or broadening formation) among experienced traders, the megaphone pattern can seem daunting to newer traders. By highlighting the way an asset is trading at higher highs and lower lows, the increasingly wide price swings effectively create a visual shape resembling an expanding megaphone. 

Unlike other trading patterns that instantly give chart analyzers an immediate gauge of directionality, megaphone patterns reflect increased market volatility and indecision as buyers and sellers battle for dominance before a breakout of the trendline causes a significant price move.

The megaphone pattern emerges as wild price fluctuations occur and widen over time, signifying growing uncertainty among traders. It can typically manifest in both bullish and bearish scenarios.

A bullish megaphone typically begins with an initial upward move setting the first peak. Prices then retrace downward, but remain above previous lows. Subsequent bullish rallies then create higher highs, while bearish pullbacks form lower lows. This creates the expanding 

 that the pattern is known for. Eventually, bulls regain control with a decisive move above the upper trendline as a breakout beyond current resistance levels. This confirms bullish momentum, and signals potential upward continuation.

On the opposing side, a bearish megaphone pattern starts with a downward move establishing an initial low. Prices then bounce upward, but fail to sustain momentum above previous highs. Successive swings create lower lows and higher highs until bears finally push prices below support levels, and prices sink beneath the lower trendline, confirming bearish conditions and potentially leading to further downward moves.

Megaphone patterns typically form either during periods of heightened market uncertainty or after significant price trends. For volatile assets such as cryptocurrency, these chart patterns frequently appear during critical market junctures that impact high-beta assets and emerge when driven by the following factors.

Now that you’re familiar with the “ins and outs” of megaphone patterns, let’s consider the benefits and risks of relying on them when planning and executing trades.

Benefits of trading the megaphone pattern

Enhanced awareness of crypto market volatility

Identifying a megaphone pattern can provide traders with a crucial early warning system for impending periods of increased market volatility. This heightened awareness supports proactive 

By recognizing the expanding price ranges, traders can anticipate sudden and significant price movements, enabling them to adjust their existing allocations, tighten 

 orders or even temporarily reduce exposure to the market. This proactive approach helps mitigate potential losses and preserve capital during periods of heightened uncertainty. Furthermore, this advanced recognition helps the trader to prepare for possible high-profit trades, instead of being surprised by the volatility.

Defined trading boundaries for strategic positioning

The diverging trendlines that form the megaphone pattern create clear and distinct support and resistance levels. These well-defined boundaries offer traders a strategic advantage, enabling them to pinpoint precise entry and exit points. Traders can utilize these levels to strategically position themselves for potential bullish breakouts or bearish reversals. By aligning trades with these key levels, traders can enhance their risk-to-reward ratios, maximizing potential profits while minimizing potential losses. 

This clarity allows for more disciplined trading decisions, reducing the impact of emotional biases while trading volatility.

The inherent volatility of megaphone patterns can certainly create opportunities for substantial gains. Wide price swings within the pattern can lead traders to to significant gains if their trades are executed with precision and timing. In highly volatile markets like crypto, these amplified price movements can translate into outsized returns. 

However, this potential for high rewards is accompanied by increased risk. Opportunistic traders can thus leverage these opportunities by employing sound risk-management strategies, such as setting appropriate stop-loss orders and managing position sizes. Potential high rewards can then be realized by correctly timing the market and maintaining the discipline needed to exit the trade.

A prominent risk associated with megaphone patterns is the occurrence of false breakouts. These misleading signals occur when prices briefly breach the trendlines, creating the illusion of a 

 only to reverse direction shortly afterward. These false breakouts can lure traders into premature trades, resulting in significant losses if not managed carefully. 

The lack of substantial volume confirmation during this type of breakout further exacerbates the risk. Therefore, traders must exercise caution and seek additional confirmation signals such as volume analysis or other 

, in order to avoid falling victim to these false signals.

Whipsaws and difficulty in risk management

The erratic and wide-ranging price swings characteristic of megaphone patterns often lead to “whipsaws,” whereby rapid and unpredictable price reversals can trigger stop-loss orders and generate unexpected losses. The volatile nature of these patterns makes it challenging to establish reliable stop-loss (SL) and 

Moreover, the expanding volatility ranges within the pattern require traders to adopt a more flexible approach to risk management, potentially widening their stop-loss orders to accommodate the increased price fluctuations. Conversely, this increased range also increases the potential loss per trade — so risk management is of key importance.

 and other chart patterns, the megaphone pattern can be subjective in its overall identification. This inherent subjectivity stems from varying trendline interpretations, differing time frame analyses, market-specific nuances and psychological biases. Such a combination of subjective factors makes its identification and analysis a complex and potentially contentious process. 

The lack of a universal definition — combined with the difficulty of distinguishing signal from noise during periods of high volatility — poses a significant challenge for those unfamiliar with trading megaphone patterns. As such, inexperienced traders need to 

 prior to trading the megaphone pattern, in order to minimize the risk of misinterpretation and subsequent financial losses.

Traders typically employ several practical strategies when approaching the megaphone pattern in the crypto space. The following are some suggestions when it comes to trading it.

Always implement disciplined risk management practices by setting strategic SL and TP orders based on measured moves within clearly defined boundaries.

Tools and indicators to complement the megaphone pattern

You may have noticed that we’ve suggested making use of MACD and RSI indicators to confirm the price action of any potential breakout. These handy technical tools in your arsenal may help enhance entry and exit accuracy when trading megaphone patterns.

All in all, incorporating these indicators is bound to significantly improve your decision-making accuracy by validating potential trade signals and ensuring you make the most informed trading decision.

Is the megaphone pattern an effective gauge?

Overall, the megaphone pattern serves as an effective tool for beginners and experienced traders alike — provided that the volatile trading pattern is approached cautiously with disciplined risk management practices. While it does offer clear signals regarding market volatility and potential breakouts, trading it can be another story, since its effectiveness heavily depends upon accurate recognition, combined with strategic positioning using complementary indicators.

Compared to other popular chart formations such as channels, the megaphone pattern uniquely highlights expanding volatility, rather than narrowing ranges or sideways movements. Thus, traders seeking opportunities amidst heightened uncertainty may find analyzing megaphones particularly beneficial.

The megaphone pattern offers powerful insights into crypto market volatility through its distinctive widening structure that signals intense trader indecision around critical junctures. By clearly understanding its mechanics, taking into account bullish and bearish megaphone variations and complementing analysis with robust indicators (such as volume analysis or momentum oscillators), crypto traders may increase their odds of confidently navigating volatile markets safely. 

On top of doing research about the megaphone pattern, crypto traders should exercise caution by using strict risk management practices such as precise SL/TP placements to protect their trading capital.

Mastering how to decode volatility signals through careful analysis of intriguing megaphone patterns not only equips you with enhanced technical skills, but also fosters prudent decision-making — which is essential for long-term success in cryptocurrency trading. For more on trading similar volatile chart patterns, please check out more of our 

Intermediate

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Megaphone pattern: Decoding volatility signals in crypto markets

Explore GUNZ (GUN) token and optional NFT ownership in Off The Grid’s cyberpunk world, where players can play for fun or engage with NFTs to earn rewards.

 space is filled with diverse games that apply different mechanics and gameplay through blockchain technology. With most of these games, you get to play, earn and keep your assets.

But what if you just wanted to play for fun and not earn assets? This is the approach taken by the popular gaming platform GUNZ, whereby players can opt out of the 

 (NFT) aspect of gaming. In short, you can choose simply to stick with the non-crypto aspect of the 

 (OTG) game — or opt to engage in the NFT aspect of gaming.

Let’s look deeper into the GUNZ platform and the way its unique optional NFT ownership can be a catalyst for the next wave in blockchain gaming.

 is a blockchain-based gaming platform that provides a user-friendly ecosystem for developers to create games, and for players to engage in various games without gameplay limitations while trading gaming assets. 

Powered by Gunzilla Games, GUNZ is designed by gaming developers to allow a simple, flexible and rewarding gaming experience.

GUNZ is designed with developers in mind. They can conveniently launch games via the GUNZ platform, which provides them with innovative industry tools to integrate and deploy games. Gaming developers can use GUNZ’s minting engine API to create tokens and NFTs, and can trade or create their own NFT marketplace, offer users a mobile app or integrate a wallet without incurring transaction costs.

, the core game on the GUNZ platform. In both games, players can opt to mint the boxes they loot into NFT assets, which they can then use in the games or trade in NFT marketplaces. 

Additional features of the GUNZ platform include an NFT marketplace, a custom-made blockchain scanner and a companion mobile app to access assets safely and securely.

GUNZ's currency is GUN, which is used as both the GUNZ ecosystem utility token and as an in-game token.

The GUNZ platform runs on the GUNZ blockchain, an 

 custom blockchain purpose-built for AAA 

 (AVAX) blockchain subnet, allowing it to achieve high throughput and low 

. By running on Avalanche, the GUNZ gaming ecosystem can connect with other EVM blockchains via cross-chain bridges, while scaling independently using dedicated validators on its mainnet. 

The GUNZ platform is secured by two types of Validators: hardware validators and software nodes represented by Validor NFTs. 

Hardware validators help to secure the GUNZ blockchain by verifying transactions and maintaining consensus. To be a hardware validator, you need to own a powerful server with a minimum of 16 CPUs, 16 GB of RAM and 4 TB of SSD storage in order to cater to the high-performance demands of the GUNZ gaming blockchain. You also need to 

 AVAX to the Avalanche main chain to start participating in the GUNZ blockchain.

Validator NFT owners help to decode and mint in-game assets in 

 and receive a portion of the GUNZ fees that players pay for minting the items. Validators also earn 1–5% resale commissions when their minted items are traded in the GUNZ NFT marketplace, depending upon the rarity of the in-game assets.

To become a software validator in the GUNZ blockchain, you’ll need to lock a specific amount of GUN tokens to receive a Validator NFT, which varies according to the Validator NFT level (five levels in total). Higher-level Validator NFTs with corresponding higher hashpower are more likely to be selected for decoding. There are 10,000 Validator NFTs available, ensuring the blockchain remains decentralized. 

 (OTG) is a battle royale 2.0 free-to-play AAA game developed by Gunzilla in which players immerse themselves in cyberpunk battles. The unique thing about 

 is its optional NFT element: players can either opt out of receiving NFTs in the game, or choose to convert their assets into NFTs if they wish. The game is available for play as an early access launch on PlayStation 5, Xbox Series 

Vlad Korolev, CEO of Gunzilla Games and co-founder of the project, expressed enthusiasm about the potential of the 

 game, which he believes expands the horizons for AAA games by providing an innovative approach to web3 gaming. 

 has been under development for over four years, building on the foundation of battle royale and pushing the boundaries by integrating new technology with more advanced mechanics.

OTG runs on Avalanche’s subnet, GUNZ blockchain, which allows the game to deliver high performance and scalability.

 achieved significant milestones. On Oct 13, 

 recorded over 3 million transactions on the Avalanche blockchain and was 

 on Epic Games' store, surpassing popular titles such as 

The game has also gained growing visibility through its viewership on streaming platform Twitch. A partnership with Twitch streamer Tyler “Ninja” Blevins — who has skin in the game — has further 

 was also recognized as one of Twitch's top three most viewed games, with 156,000 concurrent viewers worldwide.

 reached 13 million users and recorded 450,000 daily active players worldwide.

 is an innovative third-person shooter that redefines the battle royale genre by integrating deep narrative elements and dynamic gameplay mechanics. Directed by visionary filmmaker Neill Blomkamp, known for science fiction films like 

 offers players a unique blend of player-versus-player (PvP) and player-versus-environment (PvE) experiences within a dystopian cyberpunk setting.

Set on Teardrop Island, a once-thriving locale now transformed into a battleground by the machinations of three mega corporations, 

 immerses players in a world where corporate greed and technological advancements collide.

The game's narrative unfolds through a 60-hour campaign, allowing players to engage in story-driven missions that run concurrently with traditional battle royale matches. This seamless integration ensures that every match contributes to the overarching storyline, providing depth and context to the high-stakes combat.

 introduces the "Extraction Royale" mode, a fresh take on the battle royale formula, in which a maximum of 60 players split into teams of three to engage in intense PvP skirmishes while simultaneously undertaking PvE objectives. The primary goal is not only to be the last team standing, but also to extract valuable resources, known as Hexes. These are scattered across the map, and are guarded by AI-controlled adversaries, adding layers of strategy and risk to each match. 

Hexes are loot containers that can be decoded by Validator NFTs, and then burned and minted into in-game items, such as weapons, skins and more.

 is the extensive customization available to players. Characters referred to as Zeroes can be enhanced with cybernetic limbs (“cyberlimbs”), which provide unique abilities and advantages on the battlefield. These enhancements can be acquired during matches, either by looting or by defeating opponents and claiming their cyberlimbs. This real-time customization allows players to adapt their strategies dynamically, tailoring their abilities to the evolving challenges of each encounter.

 is equally robust, featuring over 300 combinations achieved through various attachments and modifications. Players can customize their arsenal to suit their preferred playstyle, whether it involves long-range engagements, close-quarters combat or tactical versatility. The ability to modify weapons and cyberlimbs mid-match adds a layer of depth, encouraging players to think strategically and adapt to the ever-changing battlefield conditions.

Teardrop Island's diverse terrain offers numerous traversal options, enhancing both combat and exploration. Players can utilize vehicles, such as trucks and cars, for rapid movement across the map. Additionally, advanced equipment like grappling hooks and jetpacks enables vertical mobility, allowing for surprise attacks and quick escapes. These tools not only facilitate strategic positioning but also add a dynamic element to engagements, as players can approach objectives and confrontations from multiple angles.

 delivers stunning visuals that bring its cyberpunk world to life. The game's environments are richly detailed, featuring neon-lit cityscapes, industrial zones and desolate areas that reflect the island's tumultuous history. Character models and animations are meticulously crafted to keep players invested in the characters they play. The use of advanced lighting and particle effects creates a visually stunning experience, enhancing players' overall immersion.

GUNZ offers players a platform on which to truly own the assets they earn in the game via NFTs. Benefits of owning GUNZ NFTs include the following.

On traditional gaming platforms, players' in-game items are typically controlled by the games’ developers, limiting players' rights over these assets. GUNZ changes this dynamic by allowing players to fully own their in-game items as NFTs, granting players complete control and the ability to trade or sell these assets as they see fit.

2. Seamless trading on established marketplaces

Through integration with major NFT marketplaces such as 

, GUNZ allows players to trade their in-game NFTs with a broader audience. This integration provides a transparent and secure platform for transactions, enhancing the liquidity and value of players' assets.

By incorporating NFTs, GUNZ offers a more immersive and personalized gaming experience. Players can acquire unique items, customize their characters and participate in a dynamic in-game economy, contributing to a richer and more engaging gameplay environment.

The ability to trade NFTs means that players can potentially earn real-world value from their in-game activities. By selling rare or valuable items, players can monetize their gaming skills and time investment, adding a financial incentive to their gaming experience.

The GUNZ platform is designed to support multiple games, thus allowing NFTs to be utilized across different titles. This interoperability means that players' assets can retain value and utility beyond a single game, providing a cohesive and expansive gaming ecosystem.

GUN is the official token for the GUNZ ecosystem. 

GUN is built for two purposes: to be used within the GUNZ ecosystem, and as an in-game token. As an ecosystem utility token, GUN

 is used to pay gas fees for on-chain transactions,

 as well as to distribute rewards for Validator NFTs

As an in-game token, GUN is used to pay in-game fees (such as HEX decoding fees) and to

 trade in-game items on GUNZ’s marketplace. GUN token is also used to reward players for completing various

challenges. Here are some of the challenges you can complete to earn GUN tokens:

 tokenomics. There’s a total of 10 billion tokens, of which 5.105% are dedicated to Validator NFT staking. These GUN tokens are locked into the Validator NFTs, and will eventually be 

 when they’re used to mint in-game items. 

You can buy GUN as a Perpetual contract on Bybit with leverage of up to 25x (

). The GUNZ Perpetual contract can also be traded automatically via Futures bots, such as 

 — each tailored to different investment goals and market conditions.

As of Apr 16, 2025, GUN is trading at $0.049, 57.2% lower than its all-time high (ATH) of $0.115 on Mar 31, 2025, and 21.1% higher than its ATL of $0.0404 on Apr 4, 2025.

Despite its rapid tumble from its ATH, price prediction experts remain relatively positive about this token's long-term prospects. DigitalCoinPrice 

 to climb to $0.18 by 2027, and to hit $0.27 by 2030. Meanwhile, CoinCodex 

 will grow at a slower pace to begin with, reaching a high of $0.06 in 2027 and rising to $0.20 by 2030.

GUNZ provides an innovative approach to gaming. The optional NFT element for players is unique, creating flexibility for those who don't want to explore the blockchain aspect. The platform’s 

 game has already recorded remarkable success, gaining popularity among Web 2.0 and web3 gamers.

With the capability for gaming developers to easily create and integrate games, GUNZ is strategically placed to influence blockchain gaming. Its official currency, GUN, is a token to watch as this AAA game continues to make its mark on the web3 gaming industry and beyond.

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GUNZ (GUN): Optional NFT Ownership in Off The Grid’s Cyberpunk World

In this article, we explore what Wayfinder is, the role it plays in transforming gameplay in the Parallel TCG ecosystem and the utility of its native token, PROMPT.

 (DeFi) are opening new avenues for both traders and gamers. 

 (PROMPT) is one such protocol that leverages autonomous 

, known as "Wayfinder Shells," to navigate across multiple blockchains. 

With the power to execute complex tasks like swapping tokens, deploying 

 and even minting NFTs using simple natural language commands, Wayfinder paves the way for seamless blockchain tasks across multiple chains. In this article, we dive into what Wayfinder is to look at its key features, the role it plays in transforming gameplay in the 

 ecosystem and the utility of its native token, PROMPT.

Imagine commanding an AI to handle all your cryptocurrency tasks — swapping tokens, deploying smart contracts or executing sophisticated DeFi strategies — with just a few simple instructions. Wayfinder aims to make that vision a reality. 

This omni-chain AI protocol lets users control autonomous AI agents, referred to as Wayfinder Shells, that travel across blockchains such as Ethereum, Solana and Base to perform tasks ranging from asset transfers to NFT minting and advanced DeFi strategies. With its user-friendly natural language interface, the platform eliminates the need for complex coding, making it accessible to both beginners and experienced developers.

Wayfinder is the brainchild of the team behind 

, a blockchain-based sci-fi trading card game that uses immersive storytelling to drive fan engagement. Its developers saw an opportunity to enrich gameplay in their upcoming title, 

, a survival simulation game featuring autonomous AI avatars. 

By integrating AI agents into their game, they aim to create dynamic, interactive experiences that adapt to player actions. One key figure is 

 (known as @templecrash on X), the founder of Parallel and Wayfinder, whose vision for blending digital gaming with sophisticated AI has been instrumental in shaping the protocol.

Wayfinder operates by employing “Wayfinding Paths,” which are predefined workflows designed to guide its AI agents across various blockchains. When a user issues a command, these paths are triggered, allowing the Wayfinder Shell to execute specific tasks, such as transferring assets, minting NFTs or deploying smart contracts. Each agent comes with a dedicated 

, ensuring the secure management of assets during transactions. 

Additionally, a community-driven knowledge graph continually feeds new information into the system, enhancing the agents’ ability to learn and optimize operations over time.

Wayfinder’s omni-chain compatibility means it can seamlessly interact with a broad range of blockchain networks, making cross-chain operations nearly effortless. Use cases for Wayfinder extend beyond DeFi and gaming, and include applications in smart contract deployment and digital asset management, all controlled via natural language commands. This level of automation and interoperability simplifies complex processes and allows users to focus on strategy, rather than technical details.

The PROMPT token is at the heart of the Wayfinder ecosystem. Serving as both a 

, PROMPT is used to create and upgrade Wayfinder Shells, stake for proposing new Wayfinding Paths and pay gas fees within the network. The token also empowers community governance by allowing stakeholders to participate in decision-making, influencing future developments and technical upgrades. 

, allocating 45% of its total supply of 1 billion tokens to community members who have staked Parallel’s PRIME token or completed other tasks.

Wayfinder represents a significant leap forward in combining AI with blockchain, offering users an intuitive platform to execute complex tasks through simple commands. The project not only empowers innovative gameplay with titles such as 

 but also drives efficiency across the crypto ecosystem. Bybit 

 Perpetual futures contract in its Innovation Zone, allowing Bybit users to trade with up to 25x leverage. Head to the 

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Wayfinder (PROMPT): AI agent ecosystem founded by web3 game Parallel

Blockchain

Get insights on how the Proof of Stake is different from its predecessor. Learn the PoS mechanism, mining impact, and its pro & cons.

What-is-Proof-of-Stake

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Blockchain has become a ubiquitous term over the past couple of years. A growing number of enterprises and governments are opening to blockchain technology (and distributed ledger technology). Despite its rapid growth, there is still some confusion about crucial concepts such as ‘what is Proof of Stake’ or ‘what is consensus algorithm in a blockchain network.’ In the end, making it imminent to address these information gaps.

Proof of stake (PoS) is a consensus algorithm under which randomly chosen validation nodes (validators) stake native tokens (staking) of the blockchain network to propose or attest new blocks to the current blockchain. A validator will receive rewards by successfully adding blocks to the blockchain. 

This post aims to shed more light on crucial blockchain concepts, including:

Why Is Consensus Mechanism Important in Blockchain?

A consensus mechanism is a set of rules through which different participants within a blockchain network approve transactions. Since blockchain networks do not have a central authority to approve transactions, consensus protocols ensure that all the network participants agree to only a single version of the blockchain.

There are different types of consensus algorithms in existence, including Proof of Work (PoW), Proof of Stake (PoS), Practical Byzantine Fault Tolerance (PBFT), Proof of Burn (PoB), and other variations of the consensus algorithms.

(PoW) and Proof of Stake (PoS) remains the most popular. As a blockchain enthusiast or early adopter, it is critical to understand the difference between PoW and PoS.

PoW relies on nodes’ ability to solve complex mathematical problems that require an extraordinary amount of computation power, consumes electricity, and has a high initial setup cost.

PoS, on the other hand, requires validators to stake their tokens instead of solving mathematical puzzles, thereby reducing electricity consumption, as well as block the generation period, and avoiding centralization of resources. PoS also protocols use pseudo-random sequencing to choose validators.

The PoS mechanism involves two separate parts for it to work. Firstly, a validator node has to deposit tokens of the blockchain platform as a stake. These tokens are blocked for a set period. A higher stake improves the chances of a node being selected for forging the block.

It is critical to understand that prioritizing nodes with higher stakes is how PoS is designed. This practice ensures the validator has more skin in the game, making it economically unviable to act otherwise.

The second part of PoS involves choosing a validator for block forging (generation) randomly. There are multiple ways to select validators, these include:

Once a node is selected, the validator node verifies the transactions within a block, followed by signing the block. Other validator nodes attest whether the block is valid. As most validators rule in favor of the block, the block becomes a part of the blockchain. Then, the selected validator node will receive transaction fees as a reward.

However, suppose a block is categorized as fraudulent (error) by other validators attesting the block. In that case, the chosen validator loses a portion of the stake, and the process will restart. Consequently, the forger will be restricted from any block forging (generation) activities in the future.

Which Cryptocurrency Is Using The PoS Consensus?

PoS has come out to be a more efficient, quick, and less-resource intensive consensus mechanism. These qualities have led to a growth in proof of stake coins. Here are some of the most popular coins using PoS as a consensus mechanism.

Some other popular crypto coins using PoS or its variants include the Nxt (NXT), Algorand (ALGO), Cosmos (ATOM), Peercoin (PPC), Steem (STEEM), and more.

Why Does Ethereum 2.0 Use Proof of Stake?

That brings us to the question of why Ethereum 2.0 uses PoS. Well, the primary reason is to quicken the block generation (or forging now) time. Since blockchains using PoS require a comparatively shorter period to arrive at a consensus, it boosts the network’s overall throughput.

The Ethereum 2.0 update aims to further boost block forging speed through sharding, where every single shard chain will have the same processing ability as its predecessor’s Ethereum 1.0 network.

In short, shifting to PoS protocol will allow Ethereum 2.0 to become more scalable, efficient, and ready for transaction-heavy industrial applications.

Blockchain technology was touted as the technology of the future with decentralization at its core. However, its heavy reliance on computing resources led to the centralization of mining pools, thereby jeopardizing blockchain technology’s core objective.

The proof of Stake consensus protocol addresses some of the critical challenges blockchain technology is facing at the moment. As the global demand for green technologies arises, PoS consensus protocol becomes the norm in the blockchain industry.

However, there will always be a debate about PoS vs. PoW practicality, but as more blockchains implement PoS, more prospects are likely to emerge. The PoS protocol will take its due time while going through various development stages, but it’s undeniably one of the strongest contenders for consensus protocols as we advance.

Explained: What Is Proof of Stake (PoS) in Blockchain?

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