This article was first published on Stories by NULS on Medium
Proof of Credit Mining (POCM) is designed for companies and projects to obtain funding — akin to crowd sourcing.
POCM is a type of SCO project (Staked Coin Output). Participants receive tokens as a reward from the company that owns the POCM. The participant hears about new projects and is on the ground floor of the project.
The POCM project receives the NULS rewards for processing blocks. Developers articulate their projects and begin to create a global presence for their project and themselves.
POCM is a win for everyone:
- WIN for companies: POCM gives startups an opportunity to get funding for their business and be visible and known in the blockchain space.
- WIN for blockchain followers/enthusiasts: POCM gives people the freedom to take part in projects without the risk of losing their staked amount. Also, we can see and learn about a new blockchain project — its potential, and how we can contribute to its success and growth.
- WIN for NULS: We want to grow the NULS blockchain ecosystem. By creating opportunities to fund projects, we work together to grow our global blockchain footprint.
NULS offers this facility via the Proof of Credit (POC) consensus mechanism. Instead of mining like Bitcoin (proof of work), NULS uses a network of trusted nodes to verify transactions. The staked NULS on each node contribute to its trustworthiness. Some of the NULS consensus nodes are POCM nodes. The owner of the POCM project receives all the rewards from people staking on their project via a smart contract.
Some background on blockchains: Blocks are the building blocks of a blockchain. Each block contains the record of transaction executed for the time that block is created. Every time a consensus node processes a block, it receives payment for processing it.
Since day one, NULS has been committed to breaking technical barriers — hence ...
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