Five promising Proof-of-Work (PoW) cryptocurrencies are worth watching in 2023. These cryptocurrencies each have unique approaches to PoW consensus algorithms, governance models, and scalability and offer various benefits to users.
Why I prefer Proof-of-Work Cryptocurrencies:
It’s simple. Bitcoin is based on PoW consensus which has been running for more than a decade with 100% uptime. PoW are Layer-1 networks which are mined through GPU’s or specialized computers called ASIC. High amount of energy and effort is used to mine these coins, people around the world can contribute to their network by providing the hashrate which ultimately secures the network, processes transactions. On the other hand, the Proof-of-stake consensus is basically an application hosted on a centralized web hosting server and has limited number of nodes, not as secure as PoW and it can go down anytime.
Disclaimer: This is not financial advice. Please do thorough research before investing your time, energy and money on them.
1) RunOnFlux (FLUX)
FLUX is a decentralized, open-source cryptocurrency that provides incentives for miners to keep mining. By combining RandomX, ProgPOW, and Equihash for its PoW consensus algorithm, it is safe, scalable, and sustainable.
What it solves: Decentralized cloud computing infrastructure, Web3, dApps. You can either mine it with GPU or run a Flux Node operator to earn rewards.
- Current Supply (Feb 2023): 276,866,982 FLUX
- Current Hashrate (Feb 2023): 4,505.110 kH/s
- Current Difficulty (Feb 2023): 76,262.9740002
- Total Transaction Fees (Feb 2023): 2.61700513 FLUX
- Number of Transactions (Feb 2023): 90751
- PoW consensus algorithm that combines RandomX, ProgPOW, and Equihash.
- Decentralized and community-governed.
- Provides scalability options like sharding and lightning networks.
2) Ethereum Classic (ETC)
Built on the Ethereum Blockchain network ETC is the proof-of-work (PoW) coin that was introduced in 2016 following the hard fork of Ethereum and rose to supremacy very rapidly.
What it solves: Since the main Ethereum (ETH) has moved to Proof-of-stake in v2.0, the original ETC is still PoW and has EVM compatibility to run decentralized Apps.
- Current supply (Feb 2023): 139,280,334 ETC
- Current hashrate (Feb 2023): 111.19 TH/s
- Current Difficulty (Feb 2023): 1,650,920,995,388,297.00
- Total Transaction Fees (Feb 2023): 0.0001 ETC
- Number of Transactions (Feb 2023): 40,184
- Ethash PoW consensus mechanism.
- Lower transaction fees compared to Ethereum.
- Incentives for successfully mined blocks.
3) Nervos Network (CKB)
The Nervos Network’s layer 1 blockchain protocol is known as the Nervos Common Knowledge Base (CKB), which operates through proof of work and is a public, permission less network.
What it solves: Multilayer blockchain for added security and scalability.
Layer 1 (L1) and Layer 2 are the two layers that make up the network’s structure. The L2 layer supports complex applications and improves scalability, whilst the L1 layer creates a blockchain foundation and offers essential support for smart contracts.
- Current supply (Feb 2023): 39,679,071,061 CKB
- Current hashrate (Feb 2023): 102.38 PH/s
- Current Difficulty (Feb 2023): 2346.303461P
- Total Transaction Fees (Feb 2023): 0.00000601 CKB
- Number of Transactions (Feb 2023): 11,790
- Layer 1 blockchain protocol (CKB) that operates through proof of work.
- Advanced privacy features, self-sovereign identification protocols, multi-currency compatibility, and cross-chain interoperability.
- CKB functions as a governance system and may be used for staking on nodes.
4) Syscoin (SYS)
Syscoin is a layer-1 and layer-2 blockchain solution that offers high scalability on top of a safe PoW blockchain with the help of its own EVM implementation and other layer-2 technologies.
What it solves: Combines the best of both Bitcoin and Ethereum into one blockchain. Can be merged mined with BTC. Zero-knowledge rollups supported on Layer 2.
- Current supply (Feb 2023): 753,571,731 SYS
- Current hashrate (Feb 2023): 63.47 EH/s
- Current Difficulty (Feb 2023): 1,881,567,122,579.39
- Total Transaction Fees (Feb 2023): 0.0002 SYS
- Number of Transactions (Feb 2023): 24,000
- Layer-1 and layer-2 blockchain solution.
- Built-in marketplace.
- zDAG technology for transactions with high throughput and low latency.
5) Kadena (KDA)
Kadena is a hybrid proof-of-work (PoW) blockchain system that enables developers to design and roll out secure distributed applications. The platform offers a library of smart contracts that customers may utilize to create unique apps. In order to achieve network-wide consensus, Kadena adapts the Nakamoto consensus method.
What it solves: Solves trilemma with Chainweb braided chains which provide infinite scalability through multiple chains, free transactions, turing-incomplete to prevent exploits. Layer 2 can be used for DeFi, dApps, NFTs and governance. Has it’s own programming language called Pact.
- Current supply (Feb 2023): 220,020,660 KDA
- Current hashrate (Feb 2023): 376.8433 PH/s
- Current Difficulty (Feb 2023): 490.65 P
- Total Transaction Fees (Feb 2023): 0.0001KDA
- Number of Transactions (Feb 2023): 480,000
- Layer-1 and Layer-2 blockchain solution that enables developers to create scalable and secure applications.
- Kadena’s sharded architecture allows for high throughput, low latency, and efficient scaling of the blockchain network.
- Kadena’s hybrid blockchain approach allows for both public and private blockchain deployments.
- Kadena’s Pact programming language enables developers to create smart contracts that are more secure, reliable, and easier to audit than those written in traditional programming languages.