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EXPLAINED ALL ABOUT IT
Have you ever pondered the possibility of a blockchain seamlessly integrating the strengths of Proof-of-Work (PoW) and Proof-of-Stake (PoS) methods? This is precisely what Meter Protocol achieves. Known in the trading world by its symbols MTR and MTRG, Meter Protocol is an entirely decentralized, open, foundational layer blockchain that combines PoW and PoS elements. Its main aim is to provide safe, quick, and dependable transactions by bringing together the top qualities of these two consensus methods. But how does it manage to merge PoW and PoS into a single blockchain structure?
Meter was brought to life by Xiaohan in 2018, and by 2020, the Meter blockchain was up and running. Functioning as a foundational layer blockchain, Meter forms the core for applications built on its platform, similar to how Ethereum operates. Interestingly, Meter separates the generation of cryptocurrency from the record-keeping of cryptocurrency transactions, resulting in two separate crypto tokens: MTR and MTRG. To grasp this concept, think about the roles of miners and bankers in our everyday economy. Miners gather resources, while bankers manage the financial system.
So, how do MTR and MTRG differ? MTR is linked to the economic consensus, while MTRG is associated with the consensus of keeping records. MTR is mined and utilized for payments, charges, and exchanging for MTRG. Conversely, MTRG is acquired through bidding processes and is used for staking and making governance decisions.
Meter Protocol stands out from other blockchains by introducing a novel consensus approach named Proof-of-Value, which is a hybrid of Proof-of-Work (PoW) and Proof-of-Stake (PoS). To clarify, let’s quickly go over PoW and PoS.
In PoW, participants, known as miners, strive to crack complex mathematical challenges, demanding significant computer power. The first miner to solve the problem gets to confirm transactions and receives cryptocurrency as a reward. Despite its high security, PoW consumes a lot of energy as the entire network competes to solve these puzzles and gain the prize.
On the other hand, PoS selects validators in a partly random manner to produce and validate blocks, based on how much cryptocurrency they hold and are prepared to lock in as…
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