There is no doubt that Bitcoin revolutionized the world when they created the first cryptocurrency by utilizing blockchain technology. Although as of late, cryptocurrencies have been under public scrutiny for the burden it has put on the environment. Many blockchains still use the original Proof-of-Work (PoW) method in mining their blocks, meaning these miners have their equipment constantly running resulting in an enormous amount of energy used. In fact, Bitcoin miners use as much energy annually as the entire country of New Zealand.
The POW method demands miners to solve the complex cryptographic puzzles needed in order to validate blocks of transactions to be recorded on the digital ledger, rewarding the miners in the form of cryptocurrency for every validated block. Inevitably miners must utilize an extreme amount of energy in order to stay competitive in the mining process. In the meantime, it is a great way for those with the resources to mine, although, this process will eventually become unprofitable due to the fact that every four years token incentives are halved, deeming it an impractical, and lacking sustainability.
Now, as a solution, BNC will utilize the Proof-of-Stake (PoS) method. PoS is an environmentally-conscious alternative to the POW method. The PoS method requires far less computing power to effectively mine a block, while simultaneously correcting the security problems posed by PoW. A PoS consensus algorithm provides mining opportunities in proportion to the number of tokens held by a user on the network. Therefore PoS ensures the security of the network because it is in the interest of the miners (stakeholders) to maintain the integrity of the digital ledger.
BNC will work on a rotating list of master nodes with the highest stakeholder at the top of the list, the assignment of miners will be selected in descending order. Miners will be determined 2000 blocks in advance and will not be chosen again until their block is completed. This process creates the necessary incentive to hold as much stake as possible so users may be chosen when the opportunity arises.