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A crypto currency is digital money that unlike traditional currency, it is not controlled by any banks or government entities and the creation and movement of crypto currency is recorded on a public ledger called a “blockchain.” Once the information is recorded on the blockchain, it also serves as a permanent preservation of history that cannot be changed. The public ledger can be examined by anyone. Traditional fiat currencies, such as a physical paper reserve note, plastic or coin is backed by a government entity and is controlled and recorded on a private ledger by the banks. Traditionally, physical currencies are created by printing paper currencies or minting coins. However, crypto currencies are created mathematically by solving (also known as hashing) complex mathematical problems called algorithms. The entire process is called mining by using powerful computers to solve the algorithms. The mining process also helps to secure the network and to confirm transactions. Every time an algorithm is solved, a certain amount of crypto currency is awarded and recorded on the blockchain. The newly awarded crypto currency can then be traded on an exchange for other crypto currencies or for goods and services or traded for traditional currencies.

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POS Mining also known as Proof Of Stake, is the process of mining, Or Minting, coins. POS is most widely referred to as Staking, some coins are also referring to it as Forging. The idea is to accumulate coins and hold them in an active wallet which will process transaction create new blocks and reward the holder for the work they have done. In POS mining there are Competitive wallets and Passive wallets. Competitive wallets work very similar to how Bitcoin mining works in the sense that you are competing with other miners on the network for a reward in what some call a lottery like system. The more powerful your mining blocks are the better the chance you can get the reward. Passive wallets are much less competitive and generate rewards at a specific time no matter how many people are mining the coin. Some of these have max rewards, some are set up against the difficulty, and other just give a flat rate of return. In competitive wallets it is good to research the wallet, talk with the community and set your blocks up to be as competitive and rewarding as possible. Setting up blocks is done in the Coin Control panel, and you put a certain amount of coins in one input, for example if you have 100,005 coins in a wallet you will use coin control and send 10,000 coins to that same address 10 times to create 10 blocks of 10,000 coins inside your wallet. Once you have an idea of the block sizes recommended then it is best to do your own diligence and test different sizes out until you find the size you want that gives you the reward you would like to generate. Sometimes setting block sizes to large will be a waste of coins, so be careful how large your blocks are, having the largest blocks on the network does not always mean you have the most rewarding wallet per coins held on the network. Equally having the smallest blocks and a lot of them may not be beneficial either, which could be creating blocks to small to gain enough weight on the network to generate an income and would also be a waste of coins and weight. Weight is the amount of power you hold due to your coins, and a lot of coins have a maximum weight on a block of coins. This means after a specified time (30 day or 90 days) those coins in that block stop gaining weight on the network. The longer it takes for a block to stake, the less reward is gained on that block. So setting up Blocks and sizes in the blocks is very important to how much you can plausibly generate from any wallet you use. POS is one of the most efficient ways to mine coins. It consumes very little hardware resources, and you can mine multiple coins on one server or computer.