PRIZM Staking – Everything You Need to Know
SWhat is PRIZM staking and how do you do it? In this guide, I will go over in detail about PRIZM itself as a network as well as show you how to start staking it.
PRIZM (PZM) is a cryptocurrency that is based on the NEXT core network, built with JAVA and completely using the Proof of Stake consensus method. One of the unique features of the network is that it doesn’t use the coin age implementation and it is quite resistant to “nothing at stake” attacks, where a malicious user can double spend money and also stake in two chains when a fork occurs. This resistance and balance are achieved thanks to Curve25519 encryption along with the commonly used SHA256 algorithms.
One of the most unique technologies that the PRIZM network uses to stop misbehaving users is ParaMining. This system does not allow users to interfere with the mechanism and falsify coins and double spend. It works for any PRIZM wallet with a balance between 1 and 1 million PZM.
Pros & Cons
- Ability to encrypt comments to transactions – this is a unique feature for PRIZM
- The block time is fixed at 59 seconds and it does not depend on how many transactions are inside the block
- Technical details and documentation are hidden – they are not present in the whitepaper and GitHub
- The consensus mechanism is unproven, which can raise doubts regarding the scalability of the network
How to Stake PRIZM
So, why you should stake PRIZM at first place? Well, there are a few notable features that give PRIZM an edge when compared with other cryptocurrencies. The ParaMining mechanism allows automatic cold staking that does not require you to run the wallet 24/7 and not spend any computational resources.
Also, staking PRIZM is easy to set up. It is quite user friendly and it is compatible with almost any OS – Windows, Android, OSx, Linux. Without over-exaggerating too much, you just need to have 1 PRIZM in your wallet and just leave it be. It will automatically work and gather up currency.
Minimum Requirements
- You will need to set up your OS – Windows 7 or later, Linux or OSx 10.10 or later
- You need to register for the web wallet and set it up
- The wallet has absolutely no space requirements on your hard drive
- You will need at least 1GB of RAM
- No specific requirements regarding to your connection
- Cold staking is supported, so you don’t need to keep the wallet online 24/7
Summary: In order to be able to stake, you will need to buy at least 1 PRIZM coin from an exchange that offers it. As soon as you send the coins to your wallet, the staking process starts and stops when the wallet balance reaches 1 million PRIZM.
PRIZM Wallet Setup (GUI)
Step 1: Download & Install the Official Wallet
Since it is a web wallet and doesn’t require any hard drive space, you can just go ahead and register on their official website here and register for a wallet with the Create Wallet button.
Step 2: Encrypt the PRIZM Wallet
There is no need and no actual function to encrypt the wallet to start staking PRIZM.
Step 3: Backup The PRIZM Wallet
Staking PRIZM does not require you to back up the wallet to start the process. For safety, you should save your generated password somewhere when registering. Maybe on a piece of paper and keep it somewhere safe.
Step 4: Create a Wallet Address
When you create your wallet, on the initial screen you should see your wallet address. You can click on it and receive your public key that can be used for receiving funds.
Step 5: Transfer Coins to the Wallet
As I mentioned earlier, you can obtain PRIZM from any exchange platform that offers the crypto. After you buy the coins, you will need to transfer them to your official PRIZM wallet. You will need at least 1 PRIZM in order to start the staking process.
Step 6: Unlock the PRIZM Wallet
The staking process starts automatically and there is no confirmation period that needs to pass. When you open your wallet, next to the PRIZM logo, you will see two letters and numerical values next to them. The B letter states your balance and the letter P indicates the staking balance. Why is it then indicated with a P you ask? Because the staking process in the network is called ParaMining.
PRIZM Staking Reward
The rate of receiving rewards is, in essence, random, but there are many factors that can affect it and increase your chances at validating a block. One of the main factors is the coin age, which indicates the time your coins have spent in the wallet without being modified or moved. Also, your weight in the network can be a deciding factor when compared to the total network weight. Your network weight is a calculation of your total staked coins and their age, while the total weight is a sum of the total coins on the network that are being staked compared with the total amount of coins issued.
I would like to point out that although masternodes and staking are similar in the sense that you invest coins in an address and your funds work for you to receive a passive income, they are quite different things. Masternodes provide other services and security to the network as well as receiving regular rewards. Stakers don’t serve any other purpouse and don’t have a regularly paid out reward.
When it comes to staking PRIZM, there are different growth rates and multipliers depending on how much coins you have in the wallet, but in short, you should expect a rough return of investment by 10% per month. I say that its a rough estimate, as there is not enough information on their website or GitHub regarding that. Results may vary with different users.
How to Maximize Rewards
Currently there are no methods or shortcuts with which you can increase your returns from staking. The only thing you can do is get more coins, as a higher stake increases your chances to be chosen as the next validator.
Figure out Your Profit with the PRIZM Staking Calculator
There is no real accurate way to calculate your earnings when it comes to staking. Especially in networks like this, where the information is not enough. As mentioned earlier, you can expect a rough estimate of 10% ROI per month while staking. You can also use the calculator to see your potential rewards before you even invested in the coin.
FAQ
No, you cannot mine Prizm. It uses the Proof of Stake consensus mechanism, where mining is not an option.
No need to use the Raspberry Pi. The wallet is a web version with an offline staking mode available.
There is currently no coin maturity period, so the staking starts as soon as there is at least 1 PRIZM in the wallet.
I would say yes, as the project is quite unique and does not copy from other cryptocurrencies.
Yes, the maximum supply is 6 billion PRIZM.
Because it doesn’t require you to do anything except create the wallet and get 1 PRIZM. That’s it. Everything else works by itself.
Make sure that you have at least 1 PRIZM in your wallet.
About PRIZM
PRIZM (PZM) is based on the NXT core with added improvements and a 100% use of the Proof of Stake consensus mechanism. It was completely built on JAVA with an open source code and the coin age factor is not active on the network. This makes PRIZM very resistant to the “nothing at stake” attacks where users can exploit a small fork to double spend their coins. It is a fully pre-mined cryptocurrency using Curve25519 cryptography and SHA256 hashing algorithm. After creating and validating a block no new coins are created, but rather the reward is the sum of transaction fees inside the block.
Unique Selling Points
Some of the most notable features the network has is called ParaMining, which was created specifically for PRIZM. This provides security and resistance towards double spending in the network. The PRIZM network also boasts with easy conversion to other cryptocurrencies through the PRIZM.STORE.
Team
The founder of the PRIZM project is Alexey Muratov and a part of the NXT dev team is currently developing and supporting it. Unfortunately, there is no more additional info regarding the team.
Network
The PRIZM network does not support masternodes that validate transactions and blocks, so any other device connected to the network and considered a node can be a validator of information. The system has an implemented DDOS attack prevention, which limits the network requests for each user to 30 per second.
Privacy
The key to the privacy of the PRIZM coin is the Curve25519 algorithm, which using Diffie-Hellman’s elliptic curve, generates a shared secret with a high degree of protection. The signing of messages and transactions in the network is carried out with the signature algorithm EC-KCDSA, which gives both speed and security while maintaining a key size of 32 bytes.
Future
The future for PRIZM holds new approaches in regard to fair money distribution between all users, further development of the blockchain technology, development of the PRIZM coin as an international unit of calculation and an alternative money sully, support of relevant eco-crypto technologies and many more. After achieving the 6-billion-coin mark, the pre-mining stops and a referendum is held among PRIZM holders.
Useful Weblinks
- Official Website: http://prizm.club/en
- Announcement Page: https://bitcointalk.org/index.php?topic=1879146.0
- GitHub: https://github.com/prizmspace/PrizmCore
- Block Explorer: http://blockchain.prizm.space/index.html
- Whitepaper: http://tech.prizm.space/wp/prizm_wp_en.pdf
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