New user here, don't understand concept of staking or PoW to allow voting.
Hi all, just bought some VITE on CoinEx and converted in the web wallet. I have now voted those VITE to the SwissVITE SBP, but I had to stake or PoW to get some quota first. I don't understand the point of either. Is there a ELI5 explanation somewhere?
Think of it this way.
In Ethereum, you need to pay a fee for any transaction you perform.
- Alice pays more than Bob so Alice's transaction has higher priority over Bob's.
- Alice doesn't know how much fees to pay so most of the time will overpay or underpay.
- Carlos has to spend anywhere from $0.05 to $0.50 to perform a transaction.
- Alice is constantly frustrated that a transaction she performed has ran out of gas.
In Vite, there are no fees for any transactions you perform (but however are they quota requirements).
- Alice performs a transaction and they are instantly confirmed.
- Alice always knows how much quota a transaction requires as they are static and known
- Carlos never needs to pay any fees for sending a transaction as Carlos simply performs a PoW
- Bob is a frequent trader and has staked some tokens (in-order to generate quotas) and is able to perform transactions much more frequently compared to someone who performs PoW.
Vite has a quota based resource allocation protocol and also does not have any transaction priority (as transactions are almost instantly confirmed as they are sent).
There are currently two ways to obtain quota:
Perform PoW (this is done inside the wallet application) to perform a one time transaction.
You can only do PoW on basic transactions. For most users, performing PoW is more than enough for them (voting, sending etc). For more advanced transactions (such as registering a SBP node or issuing new tokens), they will be required to stake some tokens in-order to be able to perform them.
Stake Vite tokens to generate quota (your quota will never run out as they will regenerate). The generation rate depends on how much you stake... higher amount of staked tokens equals a higher quota generating rate.
This is great for users like myself who will perform transactions frequently (such as operating a coin faucet). If I want to be able to perform even more transactions at a faster rate, I can just simply stake more tokens to increase my quota generation rate.
Great post Plasmo, thank you. A couple follow-up questions:
If I decide to stake, which quota recipient address would I use? My own Vite address?
With PoW, does this just confirm I'm not a bot to protect the network from spam or does it provide the network with a beneficial service? How long does my machine do this PoW work? Only 1 sec or so?
- If I decide to stake, which quota recipient address would I use? My own Vite address?
Yes the quota recipient would be your own address if you want quota for yourself. Most people won't need need to stake as most people won't need to perform advanced transactions. So make sure you want to before you actually stake as your staked tokens will be locked up for 3 days (but you will be able to withdraw the full amount after the 3 days are up).
- With PoW, does this just confirm I'm not a bot to protect the network from spam or does it provide the network with a beneficial service? How long does my machine do this PoW work? Only 1 sec or so?
It's simply just a math calculation to prevent dust attacks/spam/network abuse. The PoW is very minimal. Only takes about 2 seconds. You can try it out for yourself in the web wallet. Send a transaction to someone, and click "PoW". The wallet will initiate a PoW and will be done before you know it
Leo last edited by Reward
@plasmo the web wallet pow is power by our gpu server.
Thank you both!
Navin last edited by Reward
@plasmo Dude you're awesome. You're a great help to this community. I like the way we all look out for each other.