What are the differences between PoS (Proof-of-Stake) and PoW (Proof-of-Work)?

These two methods allow the creation of new blocks of a blockchain. These blocks contain the transactions made during the last 10 minutes for Bitcoin. However, there are many differences between proof of stakes and proof of work.

What is the PoS (Proof-of-Stake)?

It is a method that allows to register and validate transactions in blocks. For that a person must have a certain number of tokens of a crypto-money.
The more tokens a person has and the more likely he will be chosen to create a new block.
In exchange he gets a part of the transaction fees that are entered in this new block.

What is PoW (Proof-of-Work)?

This method also allows the creation of new blocks but in a different way. To do this, users will make available the computing power of their machines. They will have to solve more and more difficult mathematical calculations.
For this, more and more powerful machines will be used and they will consume more and more electricity.
In exchange, the people who create new blocks are paid with specially created tokens.

BANG BANG it’s a digital robbery ! One million LEDGER customers data hacked !

Its all over the news. A million customer e-mail addresses, as well as first and last names, postal addresses and purchase histories were stolen from Ledger. This is the biggest hack in its history that the specialist in security solutions for cryptosystems is facing. Ledger manufactures the Nano X and S electronic wallets. The hack, which has not been claimed, is not about the security of the products themselves. Bitcoin’s customer are not threatened. However, they could become the target of phishing attacks in order to fraudulently access their encryptions and probably even worse in some case. Its an new era of digital robbery ! Should you panic ? We don’t know yet, but be careful your data might be out there if you are Ledger customer.

What is the story behind this hack ?

On 14 July, an independent IT expert found a flaw in the company’s website. This allowed access to the customer database. According to Ledger’s findings, the flaw was exploited on June 25. The scale of the attack is significant because the hacker stole half of the company’s customer base of two million customers worldwide. Those affected are those who bought a product directly from Ledger’s commercial site, as well as those who receive the start-up’s newsletter. People who purchased from other e-commerce plateform should not be affected, as its not directly link with Ledger customer data base.

Be vigilant !

For them, it is therefore important to be vigilant and not to communicate under any circumstances the 24-word sequence used to access their portfolios.
Ledger boss Pascal Gauthier and the company Ledger acknowledges its responsibility for the breach, which dates back to 2018. It was caused by the implementation of a wrong key in the site’s javascript code.

Ledger will put a complain

The company announced to file a complaint and joined forces with Orange Cyberdefense. Orange’s subsidiary dedicated to corporate IT security. They analyse and try to understand to investigate the damage. Its experts will soon submit a report to the National Commission for Information Technology and Liberties (CNIL). Which has already been notified of the data leakage.

Be aware of scammer !

The cryptocurrency world experience more and more scams, at different level from the large companies to the random users. This scams can ruin people life. Hackers can now have access of a huge data base of crytocurrency users, who might have millions euros, dollars in crypto. Learn more about different scams here : The guide to invest in crypto currencies and avoid mining farm scams !

What is a mining farm?

A minefarm is a place where we’re going to gather machines that are going to mine cryptoney. As a reminder, undermining is the fact of validating transactions on the consensus of proof of work (Proof Of Work).
mining farm

The machines on the picture are dedicated to undermine this or that cryptomoney (ASIC). However they generate a lot of noise and heat. This makes it difficult for a private individual to host them at home.

Where are the mining farms located?

Initially the mining farms were located in cold countries such as Greenland, Canada or the Island. Indeed it is simpler to recover the outside air to cool down than to pay for an air conditioner.

But the location of these farms has evolved, and today they are generally located next to places where energy is « lost ». Electricity is very difficult to store and unused surplus is often lost. Developing countries are very well adapted to this situation, so we can find a group of Central Asian countries such as Kazakhstan.

How to cool the ASICs?

A new problem arises when cooling mining machines (ASICs) in these new countries. Indeed in Central Asia the outside temperature is much higher than in Europe or North America. The solution is coming, water cooling. It is a technique that is used on gaming computers (of video game players) to cool the graphics cards. The advantage is the transmission of heat, which is 115 times higher than that of air.
water cooling mining

What kind of ASICs do they have?

The majority of the current mining fleet is based on the Antminer S9 but the arrival of the s15 on the market is changing this. Indeed this one is 50% faster than its predecessor.
What happened with the fall of the BTC in 2018?

Mining farms were spread around the world as long as the price of Bitcoin was high. The drop in early 2018 caused 30% of miners to stop production (permanently or temporarily). In addition there was a relocation of farms from Western countries to Central Asia. Indeed companies such as Bigblock Data center or Gwensas have chosen to go to Kazakhstan to find electricity at 0.0026 ct €/KWh. Without this displacement the miners would not be profitable any more.

Some are also located in Russia, but it has been reported many scammers and also most important political restriction on the crypto currency, which evolve since several months.

Mining consumes lot of energy so how to move forward

In conclusion, a mining farm makes significant gains but consumes a lot of energy. That’s why the Proof Of Stake technology was developed. It does not require computing power but only a network connection to operate. The Ethereum cryptography aims to move from proof of work to proof of stake (Proof Of Stake) as quickly as possible to reduce its energy consumption.

The guide to invest in crypto currencies and avoid mining farm scams !


Scammer are everywhere so you need to stay tuned. Learn how many honest people got unfortunely scammed by some mining farm. The fraud is build around trust and after a while they vanish in the nature. Look at this short video to understand some ways of fraudulant behaviors.

Avoid These 4 Crypto Scams & How To Invest The Right Way

Below we will explain about Cryptoreactor Mining farm scams and how to avoid those scammer mining farms.

With the emergence of crypto-currencies and smart-contracts, Ponzi schemes are multiplying… Most crypto-traders remember the BitConnect crypto-currency which was the biggest Ponzi pyramid of crypto-currencies. Unfortunetly we see this schemes developped also in mining farm such as Cryptoreactor mining farm in Russia. A smart scam to always be able to welcome new users and scam some of them on the way.

In fact, when we look at it the first time everything looked like a traditional mining farm. Such as Cyberian Mining company from Germany. When you start discussing with them the scamming procedure start without you notice. Let’s try to understand the fraud. And of course make sure that you friends and family are far away from those fraudulant mining farms.

What is a Ponzi scheme? And how Crytoreactor is going to scam you ?

A Ponzi scheme is a fraudulent financial way of dealing with people money. In which the interest guaranteed to investors is paid from the funds brought in by new investors entering the scheme. So basically if we apply it to Cryptoreactor. It’s seems that they are using similar technics to attract new clients. But the scamming and fraud are operate directly after you have transfered the funds for some of the users. And the other one will probably find out later that they have been scammed (same procedure as ponzi scheme).

Even if we tried to study and analysing the way they build this scams and operate, its still not 100% clear yet. One thing, is that it’s obvious that they scam honest users. So better safe than sorry and go for a trusted mining farm, but not cryptoreactor. There are many good and trustworthy mining farm. We will give you a safe list at the end of the article. But before lets us give you more details about we found out about the scam.

Please share this information with friends and family, better be safe than sorry !

How cryptoreactor scammed users ?

Below an exemple of one of their way to proceed and steal your money or crypto.

The road of the scammer !

They build trust in different ways, so you fall easier into the trap. You probably saved some money for a mining project, or you loan some money, and you worked hard to start mining some coins. Avoid loosing your money and make sure to place in the right Mining farm.

They will use telegram, whats app etc…Be careful !

As a potentiel client/prospect you will go on their website. Then you will talk with their team on a chat bot or over the phone. Usually they ask your name or some details, then redirect you on Telegram or whats app. That’s where its start already to be sometimes tricky and they use different way to scam you.

An exemple of the scammer steps:

Step 1: Gathering

1-They will add another person into a commun chat, usually named: Konstantin, which is their so call machine mining provider. The main contact is usually a person called Zak. (Which will pretend not to know anything after the scam. He never saw or hear anything, but all the chat from users show that it’s not true)

Step 2: Sharing info and get trusted

2-They will share the pricing, different option you have for mining, try to build trust as much as they can. (In some cases, you are probably already trusting them somehow because you got a friend who is already using their mining facilities: Ponzi scheme technic).

Suddently after several questions and interaction, they will add another person and remove you from the commun. (NOTE: at a time where you are not online). So when you go back on Telegram or Whats app, you will still be in a group but there is another person.

This person will communicate with you on the exact same numbers and topics, so you won’t even notice it. (How could they get this data if there were not from Cryptoreactor ? (It’s still the same people talking. But they added a third person, that will be the so called « unknown hacker ». This person is an important part of their scam). They use this third person, so they can point out that they have been hacked. They will tell you we don’t know this person, but this person will have all your data. So here we have two huge problem: Data protection (Not GDPR complaint) and scamming people.

Step 3: Request payment in crypto

3- The person who will request a payment for the machine will be so call : Konstantin. He will recap evereything Cryptoreactor told you and ask for payment. (payment in BTC or USDT (tether) ). So you won’t be able to do anything after the payment.

Finally, all the money that you have paid for the mining machine and hosting is gone. It’s a great way for them to collect thousand of dollar, euros, in a peaceful and easy way.

If you send over your money then you are scammed ! Now you are reading this so hopefully you didn’t the same mistake as other users. One advice run away from this kind of company.

Note: From the actual analysis. It’s possible that several people are involved in this scam. They have been questionned on the so called Konstantin, but no information were shared.

Step 4: Recruit new users with ponzi scheme

4- In some case they will validate the procedure all the way through when they need to recruit more users. In fact the ponzi scheme is valid and work when people recommend it to their friends, family and colleagues, etc… So be careful, it’s a trap…No matter what they say and show you, at the end you will loose your money…It’s a well structured trap which lead other users to loose thousand of dollar, euros, BTC etc…

Step 5: Erase main proof of the hack

5-They will deleted the conversation, so you don’t have a proof of what you are saying. BUT, some of the users were smart enough to screenshot part of the conversation. It became clear that Crytoreactor where giving all your private data to this « third party ». This person was in the common chat that they create themselve. They basically try to seperate themselve from this third person which they added themselves, not super clever in fact. But they are still able to say that the have been hacked to protect their interest. There are too many proof of the communucation with the so called hacker and share your private data.

They respect the ponzy scheme model to be sucessfull scammer !

You need to keep in mind that the scam will only affect directly some of the user to respect the Ponzy scheme. It might be the 5th users, the 10th users etc…So either you are the number X client/users and get scammed or you might go through. The goal is that you will tell your friends and family that you are using their system to mine. Unfortunately for some user, (lucky you reading this today) who got scammed, we are able today to share this stories with you guys. Don’t fall into this trap !

They make it sounds real !

They will make it sounds real but when the money is transfered. After, they will say we can’t do anything for you. They will say you were talking or interacting with another person not us. You have all the proof on the screenshot (You know and we know that each ID is unique on telegram and whats app, but as there is no real contract, you wont anything back, and of course only crypto currency payment. ) but they will hide and don’t reimburse anything !

IMPORTANT: keep in mind is that in this system is quite simple. They will use one of your friend in some case. Who will confirm that he got a machine running in their operation (of course your friends don’t know yet that they already are in cryptoreactor trap). Ponzi scheme, its real but fake at the same time, cause you loose at some point. So you will feel safe and start dealing with them. Its so called a Pyramid.

Honest people loose a lot with cryptoreactor scam mining farm !

When we talk about the Ponzi scheme, we also talk about the « Ponzi pyramid« . Each investor (happy to see that the machine is installing and seems to be running, some coins coming) will generally invite new investors. The sums accumulated in the « common pot » can quickly become astronomical. So they use trust and in-direct collaboration from honest people who will confirm that they use their system. Of course those people don’t even know yet that they will be also be scammed at a later stage maybe !