If you haven't read the previous episode, this one may not make as much sense. You can read the previous episode HERE.
In the previous episode I explained why I believe that Proof-of-Stake mining algorithm is superior to Proof-of-Work. It's worthy to mention that the mining process is mostly used to distribute the inflation of the economy as opposed to securing the network. For example, Bitcoin's network would still be pretty secure just as its forks such as Bitcoin Cash or Bitcoin SV are secure, even if its mining hash was half of what it is now. So why is it that Bitcoin's network is costing miners so much? Well it's simply because of its price being higher and therefore mining it is profitable. But at what ultimate cost, we should ask? Well at the cost of spending a lot more money on electricity and who is ultimately paying for these costs, we should ask? You might think miners and that's true; however, if you think deeper, you'll see that investors are ultimately going to be the ones who pay for these costs.
This problem is far less with Proof-of-Stake algorithm because the cost of mining would not increase significantly if more and more users decide to participate in the mining process. Mining #SwiftCash does not depend on machine power and therefore electricity. But one thing that sets #SwiftCash aside from other Proof-of-Stake coins is HODL deposits which resemble long-term deposits in the traditional banking systems. This feature is designed to cut the mining costs even further by giving everyone the opportunity to take most of the maximum inflation by simply locking their coins in the blockchain between 1-12 months. The locking transaction only costs 0.1 SWIFT and requires no ongoing cost or attention for any server, hardware, maintenance or electricity. Users can go completely offline after locking their coins and then come back to gain full access to their coins, once their coins mature.
To recap, since the main reason behind the increase of mining costs is in fact more and more users wanting a piece of the inflation, HODL deposits cut those costs even further by satisfying this desire in most users without them spending even a penny on hardware, server, or electricity. The rewards mined by HODL deposits are mined under a brand new concept in the crypto space known as the
Proof-of-HODL concept, which was invented by SwiftCash developers. HODL deposits are also irreversible and immutable which means users cannot change their mind, before the coins they decide to HODL mature. This will create an extra level of scarcity at all times, which boosts the value of the coin. It will also become a symbol of long-term faith in the underlying blockchain to outsiders, very much like government bonds, which should again add value to the underlying blockchain and therefore to #SwiftCash.
That's it for my second episode. In my third episode, I'll be talking about another important aspect that sets SwiftCash aside from other Proof-of-Stake coins that are out there. This aspect is usually known as the initial distribution of a Proof-of-Stake coin and the problem with ICOs, IEOs, or Premines which does not apply to #SwiftCash. Stay tuned!
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