Real-world asset-focused network hits key milestone in journey to multichain future

cointelegraph.com:

Creditcoin, a pioneering platform for real-world asset innovations that enables unbanked consumers to build a credit history on Web3, has announced the launch of the latest upgrade of its mainnet. This new release upgrades the RWA-focused blockchain consensus to nominated proof-of-stake (NPoS) and aims to improve on-chain liquidity for both borrowers and fintech lenders, emphasizing the principles of auditability, transparency and trust.

Proof-of-work (PoW) was the consensus mechanism that started it all — with Bitcoin (BTC) introducing the concept to millions when it launched back in 2009. But as concerns over electricity use and carbon emissions grow, many crypto projects are now seeking eco-friendly alternatives.

In 2022, after years of complex technical work behind the scenes, Ethereum made the leap to proof-of-stake (PoS). At the time, developers said this would single-handedly slash its CO2 output by 99%. Not only was this designed to make the network more palatable in the eyes of critics and regulators, but it also set the stage for enhanced scalability and lower fees.

These days, PoS is regarded as the “gold standard” for most blockchain networks — especially now that it’s less novel and proven. And a twist on this model is nominated proof-of-stake (NPoS), which broadens the number of people who can help secure the network.

While both of these consensus mechanisms share the same cryptographic principles, there are subtle differences that need accounting for. Whereas PoS has validators alone — who replace miners and stake their own funds for a role in securing the network — NPoS allows token holders to get involved as well.

These token holders are referred to as “nominators” who can back honest and trustworthy