Block Creation RightsBlock Creation Rights This type of token is the most common type of token in most blockchain platforms that have a proof-of-stake system as token holders can become block validators with their chances roughly equal to the balance of tokens. Participating in this type of consensus process involves r... More

This type of token is the most common type of token in most blockchainA Blockchain computing system treats the Blockchain as a secure computation platform that can be shared among multiple vendors. platforms that have a proof-of-stakeAn alternative to the proof-of-work system, in which existing stake in a cryptocurrency is used to calculate the amount of that currency one allowed to mine. A proof of stake system requires the prover to show ownership of a certain amount of money rather than requiring a user to perform computation... More system as token holders can become block validators with their chances roughly equal to the balance of tokensAsset-backed tokens are claims on an underlying asset, from a specific issuer.. Participating in this type of consensus processThe process a group of peers responsible for maintaining a distributed ledger use to reach majority decision on the ledger’s contents. involves running a client protocol. 

Advantages: People understand staking and can make estimates of their return.

Disadvantages: People don’t always stake their tokensAsset-backed tokens are claims on an underlying asset, from a specific issuer. and excessive staking could reduce transaction volume on the network. It also requires the launching of a new blockchainA Blockchain computing system treats the Blockchain as a secure computation platform that can be shared among multiple vendors..

Back to glossary