At VideoCoin, our utility token VID plays an incredibly useful function in securing and powering the network, ensuring the most qualified network operators are serving customer needs. The VID token does not act as a payment mechanism. Instead, it’s a reputational staking mechanism for building the global infrastructure that runs the worker nodes on the VideoCoin Network. Miners are continuously selected by the VideoCoin Network services algorithm as operators to process video files based on three factors: quoted price, number of staked tokens, and performance. This drives the least expensive and highest quality network operators to perform—the best rise to the top. Staking is the perfect use for tokens in a utility model. Instead of burdening the network with payment friction, our tokens power the network to function securely and in return, workers receive staking rewards in fiat.
Meet Crypto’s New Best Friend: Fiat
This article was originally published by Coindesk.com. Read the original article here.
