The cryptocurrency industry has evolved to meet current needs and created new consensus algorithms that are more functional. Although the Proof of Work algorithm was the first consensus algorithm, there are many protocols today such as Proof of Stake or Proof of Space.
Certain consensus algorithms offer advantages over others. Proof of Stake is, for example, a faster, more secure, and cheaper consensus protocol than Proof of Work. LaneAxis, the global brokerless direct freight network uses a proof of stake algorithm to ensure faster transactions and better security.
There is a difference between Proof of Work Protocol and Proof of Stake Consensus Protocol
In the “early days” of cryptocurrency, the only consensus available was the Proof of Work algorithm, which Bitcoin and Ether still use. As the crypto community grew, daily transaction volumes increased. The Proof of Work algorithm couldn’t handle such high traffic. This led to network congestion, high transaction costs, and slower transaction speeds.
This is due to the fact that proof-of work relies on hardware exploration capabilities. This is an energy-intensive process. Bitcoin mining in China has been limited recently due to its high power usage and large carbon footprint.
A new protocol called Proof of Stake doesn’t use mining hardware for creating new tokens to combat this problem. To validate new transactions and create new tokens, it relies on the staking existing tokens. It doesn’t rely on mining equipment and requires less energy. Additionally, it has lower overhead costs and a significantly lower carbon footprint.
The Proof of Stake algorithm provides better security, faster transactions, and lower power consumption. It is preferred over the PoW consensus algorithm. Even Ether is moving from PoW to PoS in order provide better services.
LaneAxis uses the Proof of Stake protocol.
LaneAxis uses a native ERC20 token. The Proof of Stake consensus mechanism secures the AXIS token. PoS, unlike PoW, uses staked tokens for node validators. It requires less power. They are easier to manage and have lower energy requirements than the Proof of Stake consensus mechanism.
LaneAxis uses the consensus protocol to make transactions on the platform with the AXIS token easier, faster, and safer. To ensure smooth operations for shippers and carriers, the platform relies heavily on smart contract-based transactions.
LaneAxis also keeps track of the transaction amount on smart contract while shipment is underway. The proof of stake makes sure that smart contracts are secure, and is publicly visible on the Blockchain for greater transparency.
The LaneAxis network is aiming to redefine the relationship of senders and carriers. The AXIS token plays a crucial role in that process. The Proof of Stake algorithm allows the LaneAxis network to ensure scalability and security, privacy, faster transactions, and significantly lower power consumption.
Visit LaneAxis to learn more about their network. https://laneaxis.com/.