PoW data mining utilizes high-powered hardware to work through a mathematical problem known as a hash. Numbers are calculated from this solution and create a consensus. Good computer hardware can make this process more efficient. The better the hardware the better the calculations will be. Cryptocurrencies like bitcoin implement this method of consensus to ensure the value of their currency. PoW mining has its advantages, but it doesn’t allow users to participate in the process of verification. This is why some networks turn to PoS mining.

PoS mining allows users to get involved with data mining. It does not have the same hardware requirements as PoW. Instead, blocks are created by individuals who have the largest stakes in the currency. This can be good in some ways. More people mine the currency, but this comes at the cost of equality. Those with more shares have an advantage over other users and will get more rewards.

Considering this, it is best if currencies implement a hybrid  PoW+PoS. This gives users a fair chance to mine for data and currency. At the same time system improves on the security of these systems. No system is perfect alone but combined they have a better chance at maximizing the rewards for all users

In the case of Index Chain, this process is done using PoW / PoS and also with the Masrtenode network. A unique and sustainable system, with no unjust start, using a distributed hybrid system for block generation, eliminating high energy mining while being efficient and low maintenance costs, with a reward system controlled in a way to contain inflation and devaluation in the market in the long run.