Are you familiar with the terms PoW and PoS and MN?
If not read the following explanation to find out how cryptocoins can be created using proof of work and proof of stake or masternodes.
In proof of work based mined coins are created using expensive hardware that performs mathematical calculations. If your hardware is fast enough you can mine lots of coins.
In proof of stake based mining coins are created by having shares (“stakes”) of a currency – the more you have the higher the chance that you will get the next mined block reward. You can run a proof of stake miner simply by running a coin wallet with coins inside on a low cost computer.
In our coin the value of the PoS block reward is 2 coins.
Masternodes are servers that need to be online 24/7 with a good internet connection. They receive 75% of the rewards each staking block mined. You can rent them for cheap prices like 4$/month on e.g. on Virmach.com. On that server you need to install a wallet and it needs to have the “collateral coins” of 800 TURBOGOLD always to allow you to run it as a Masternode. Check our masternode guide to see how to setup a masternode.
Benefits of Proof of Stake mining
If you would have been PoW mining coins instead of staking you would need a higher initial investment. Lets say you pay 6000$ just to get started with a graphic card mining rig. Also the rig needs to be hosted at a secure location that has lots of cheap elecricity. If one graphic card breaks down you need to pay hundreds of dollars to replace it.
If you run it at home you will most likely have high elecricity costs and it needs a dedicated room with good ventilation because it produces a lot of noise and heat. If you care about the environment you should think about all the energy the mining rig uses to produce coins.
On the other hand with staking coins you can run the wallet on a low cost computer or even a small server – for example you can rent a linux server on Vultr.com for 5$ a month which has enough power to stake 24/7 for you. Or just use a stakingpool where they run everyting for you.
If you need help with setting up your staking wallet, you can just contact us and we will help you.
The TURBOGOLD approach
For our coin we use a hybrid approach – so people can mine blocks using PoW and PoS mining or Masternodes. We want to give everyone the chance to mine coins, no matter if they can afford and host expensive hardware or just small amounts of coins.