Cryptocurrencies have recently been used to avoid the third party expenses by using mined bitcoins and other cryptocurrencies to make direct payments and it is all done using technology. There are those who mine these currencies and chain blockers are determined in order to establish a consensus in the case of any difficulties.
Previously, the method that was used to determine these people were by the Proof of Work system where the individuals had to complete certain tasks, the SHA 256 Hash Algorithm as was in bitcoin. They had to find a hash which was to be connected to its predecessor and this took some work and a lot of energy as was reported. Miners often did this and there was no guarantee that the miner would even own a bitcoin and as such, only did it for the fee.
However, a new system was formed to solve the monopoly problem and there was now the Proof of Stake based cryptocurrency which has proven to be more secure here, the block chain accounts are selected in terms of various selection methods in order to give the best and non-decentralized system for a well-functioning independent system of transactions.
There was the randomized system which had its selection made by comparing the lowest hash value to the size of the stake and could automatically decide the next to be selected to be allowed to forge a chain block. There was also the coin age-based selection where the coins that were oldest, with a maximum of 90 days had to compete for selection and would be chosen to be in a position to forge a new block themselves. Used by peercoin, the creator claimed that it had several advantages in that there was no monopoly in the market and it prevented the existence of very old coins reserves for those who would end up monopolizing this system of transactions.
However complicated it may seem, the methods used to reach a distributed consensus are being revised and the Proof of Stake being one of them, prove to be very efficient. It ensures that it is difficult to remain in power for most of the time like the transaction methods we normally use by using fiat money which is generated by one source only with its flow being monopolised by that one source. Soon, electronic cryptocurrency will take over and the various places where you get your share of currency will not have to be determined by one source controlling every move of its flow.