Thus, with the invention of the POS algorithm, a new method of mining cryptos was born. The obvious benefits include:
(1). Environmental friendliness
The POS system does not require high usage of electricity like POW mining. This is friendly to our environmental ecosystems.
(2). Low cost of service
POS does not require ASIC machines to run. Therefore, spending a lot of money to buy ASIC machines, paying for their maintenance costs and the costs of other technical requirements are eliminated in POS mining, thereby lowering the overall costs of service.
(3). Stabilising Blockchain
By staking your coins, you are helping to stabilise the blockchain, which utilises your coins to mint new coins for you. It is like the fiat banking system. The more capital base a bank has, the more stable it is in its operation.
In the same manner, the more coins that are staked into the blockchain, the more stable the blockchain system. Thus, POS helps the stability of a blockchain.
(4). User Friendly
All you do in POS mining is to stake in your coins into the blockchain. Those technicalities and computational complexities associated with POW mining are eliminated. Hence, POS mining is much easier to use.