This Onex review gives a deeper insight into it’s solution it has to offer according to PoS staking on the Ethereum Classic network.
Onex Review: Introduction
Since the advent of the internet, technological advances have been soaring at an unprecedented rate, largely due to the unflinching need to improve human lives. Today, information can be sent seamlessly from one part of the world to another. In fact, distance being a constraint in sending information, belongs to the past now. In other areas of life, ranging from health, sports, finance, entertainment, etc, the emergence of the internet offered us countless new opportunities, which we are reaping off till date.
Talks of the digital transformation, however, remains incomplete without making reference to the distributed ledger technology – blockchain technology. Moreover, this disruptive technology effectively arrests the shortcomings of centralized systems.
Centralized servers vs blockchain technology
In fact, blockchain technology uses a growing list of blocks, each linked to the other by geography in a decentralized way. On the other hand, we have centralized servers storing all the data which makes them susceptible to hacks.
The idea of a decentralized network storing the exact same copies of blockchain locally found birth by Satoshi Nakamoto. Back in 2008, the founder introduced Bitcoin which is a system contrary to government-controlled fiat currencies.
Mining blocks on the blockchain and electricity
One major setback of bitcoin blockchain, however, is the high costs associated with block validation (mining). Moreover, this factor is attributed to its Proof-Of-Work (PoW) consensus mechanism or governance model. Additionally, it operates in such a way that miners get rewarded whenever they confirm transactions or validate blocks. To carry out these tasks, however, expensive supercomputers with high processing and computational power are required. Furthermore, these computers consume high energy requirements running into 73.04Twh annually. One of the disadvantages of this consuming are the centralization of miners in China, due to its low power costs.
Subsequent blockchains feature a more efficient and cost-effective Proof of Stake (PoS) consensus mechanism. In fact, Proof of Stake rewards users for merely holding or staking coins, rather than the high entry barriers on PoW blockchains. Also, these coins staked by users form the basis of consensus judgment since voting power delegation depends on the amount staked by the user.
Proof of Stake consensus mechanism
Although these two consensus mechanisms have paved way for many new ones, the PoS remains a force to reckon with. Moreover, PoS features in many popular blockchains including NEO, DASH and CRP. The remainder of this article features an extensive review on ONEX, which has it’s roots on the Ethereum Classic network.
What is Onex
Onex can be described as a typical PoS platform that effortlessly showcases the myriad of possibilities on this consensus mechanism. Also, by being built on the Ethereum Classic network, Onex becomes the first platform to leverage PoS on this blockchain. By doing this they are ensuring that token holders are rewarded with extra ONEX tokens. Additionally, rewards are paid after holding for a period greater than or equal to the minimum coinage(equivalent to 3days).
The ONEX token is created by the Highlander Network, a team that has already carved a niche for itself following the success of its premiere “ONE” token. This experienced team has a very well track record in the blockchain industry and it isn’t a coincidence that they favorited Ethereum Classic for their project. Also, their token is ERC-223 standard and nullifies the possibility of coins getting lost forever(an occurrence which has become very common in existing blockchains). This sounds very interesting and immediately arises the question: how does PoS staking work? Let’s review!
Staking ONEX tokens: How does it work?
Staking ONEX tokens is quite easy and requires very little to no technical knowledge. Users can purchase tokens on Saturn.network, after which staking begins once the token deposit is complete. Also, after a period of 3 days within which no withdrawal is made, a certain amount of ONEX token will be added to the user’s wallet. This process can be continued for a maximum period of 90 days, after which staking is stalled, thus allowing users to trigger mint by simply transferring any amount of ONEX token to their wallet.
ONEX Review: Use case
Daniel is an avid crypto enthusiast and investor. Furthermore, he earns passive income through crypto trading but has been forced to retract due to the bearish nature of the market that has cost him a lot !.
Luckily for him, a friend introduced him to ONEX, which he found highly fascinating due to its unique stake and earn feature. After carrying out his personal research and arriving at a satisfactory conclusion, Daniel purchases 750 ONEX tokens. Assuming Daniel stakes his tokens, what will be his reward at the end of six days?
Staking ONEX tokens: A practical example
Here’s a simple guide on how this can be calculated.
Mined ONEX = (Coinage* Effective %value for maximum annual interest)/number of days in a year.
Where Coinage = Amount of tokens held * Number of days held.
Daniel’s Coinage= 750 * 6 = 4500
Effective ℅ value for max annual interest = 77/100 =0.77
Number of days in a year = 365
Mined ONEX = (4500*0.77)/365 = 9.4931507
In other words, after 6 days the reward will be 9.5 ONEX tokens which is 1.2%!!
ONEX Review: features and benefits
- ONEX network presents users an opportunity to earn dividends for holding tokens.
- It’s first platform to bring the PoS concensus mechanism to the ethereum classic platform.
- The platform aims to implement and deploy dApps in the future.
- ONEX has an initial supply of 1million tokens, though maximum supply is expected to be attained in about 15years, after which token generation through proof of stake will cease.
ONEX Review: Final thoughts
Since the emergence of the very first blockchain, newer ideas, theories, and practical innovations have been put forward. Additionally, these developments evolved to enhance the viability and practical application of this technology. Also, the Proof of Stake consensus mechanism is a product of the bespoke quest, whilst ONEX leverages its features to provide an alternative means for users to simply earn by holding tokens. *Carpe diem *!
Information and resources
Latest posts by Daniel Okorafor
- Bonafi Review: Tackling Counterfeiting Through Blockchain Technology - March 10, 2020
- Chiliz Review: Empowering Fans to Crowd-manage Sports Teams - March 6, 2020
- Publish0x Review: Earn by blogging on Publish0x - March 4, 2020