The team of Navcoin, a cryptocurrency with optional private payments, has announced that NAV has been added to the Binance Locked Staking program. With the addition of NAV; traders who keep their coins in the exchange will be able to earn passive income from their holdings and contribute to strengthening the security of the network, as their NAV will participate in the transaction validation process.
Navcoin’s network is secured by a Proof of Stake (PoS) consensus mechanism, which means that anyone can use their NAV to help validate transaction blocks. The PoS mechanism is inclusive in nature and allows all community members to act as network validators. By comparison, the Proof of Work (PoW) consensus mechanism that Bitcoin uses requires miners to operate powerful computers that are able to calculate huge mathematical problems in order to process transactions. The first computer that ‘solves’ the problem receives a reward for doing so and this mining process requires expensive hardware, access to cheap electricity, and is extremely energy-intensive. PoS does away with these resource-intensive requirements and the entry barrier to take part in staking on the network is lowered.