Proof Of Venture

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Anchor currency

Seedcoin uses a similar system to the proof of stake. However, instead of showing proof of a Seedcoin stake, SeedCoin Network's proof of venture works by showing amount of Virtu Token, an anchor cryptocurrency of our staking program. Unlike proof of stake, proof of venture doesn’t mean staked amounts are locked. Instead, a staker has her or his own staking wallet, so it’s possible to manage the staked amount (at a risk of losing all the rewards for staking period if the staked amount is reduced). For this logic, we use Virtu Token - the token that controls an environmentally driven decentralized autonomous organization - ECO DAO. Virtu Token is based on the ERC-20 network. This network doesn’t use proof-of-work (in which miners use more and more powerful hardware and more and more energy to mine coins, which lead to negative impacts to the environment).

Mine SeedCoins

Proof of venture in Virtu Token allows the client--a venturer--to mine new SeedCoins. These mined SeedCoins are awarded to the venturers for their work. In order to become a validator who participates in blockchain signing and voting, a user must first be a venturer by staking some anchor currency. Once the venturer's ranking in TestNet is high enough, they can become a validator and earn higher rewards.

Fewer energy expenditures

Unlike Bitcoin’s proof of work mining method, SeedCoin uses proof of venture and validators to achieve the same objective with significantly fewer energy expenditures. Compared to Bitcoin’s extreme energy usage, if SeedCoin was traded in the same quantity as Bitcoin, the energy expenditures would be over 10-fold lower than Bitcoin. Moreover, we’re transitioning the SeedCoin Network to renewable energy sources.