Sirwin
Sirwin

Proof of Stake (PoS)

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Proof of stake (PoS) is a type of consensus algorithm used by a public blockchain network to achieve distributed consensys. It is an alternative to the widely known Proof of Work (PoW) consensus algorithm used by Bitcoin and other cryptocurrencies. 

PoS was initially introduced in 2011 on the Bitcointalk forum to solve problems faced by the popular PoW algorithm. In 2012, a cryptocurrency named Peercoin was the first to implement the new consensus algorithm. Since then, a number of leading cryptocurrencies have adopted PoS including NEO, EOS, Cosmos, Waves, Tron, and others. Ethereum is also migrating to a PoS consensus algorithm with its upcoming Casper implementation.

The main advantages of PoS over PoW are energy efficiency, security, reduced centralization risks, new economic penalties to prevent various attacks, and the issuance of new coins can be reduced because participants are incentivised to stake coins to participate in the network rather than mine them. 

In PoS-based public blockchains, new blocks are forged or minted rather than mined like in PoW. The new blocks are minted from a set of validators who lock up their cryptocurrency into a deposit. Validators then receive a reward for staking their tokens and minting new blocks and validators with a larger stake receive more rewards. Therefore, individuals are incentivized to partake in the system. 

While PoS presents various advantages over PoW, it is not without downfalls. Some experts argue that PoS is not ideal for a distributed consensus algorithm, claiming there is a "nothing-at-stake" problem. However, there are different solutions that various projects are working on and implementing to combat issues surrounding PoS.

In this tag you can discover proof of stake (PoS) news, cryptos, opinions and analysis created by knowledgeable individuals on the matter.


How to mine Ethereum: A Beginner's Guide to ETH mining

10 hours ago 3 minute read 0 comments 101Blockchains

Ethereum is one of the biggest players in the domain of blockchain technology. It has been through a major change with ‘the merge,’ a phenomenon that marked the transition of Ethereum from Proof of Work to Proof of Stake consensus. The impact of the...

Crypto Staking for Beginners

22 May 2024 4 minute read 0 comments rumjus

Continuing my beginner series, today I wish to look at crypto staking, what it is, how it works and how you can get staking. Let's get cracking. Crypto staking is a process where you lock up a certain amount of cryptocurrency in a wallet to support t...

WAX Blockchain - Staking brings 8% APR and other revenue streams

14 May 2024 2 minute read 1 comment Behiver

WAX blockchain offers staking with an appealing APR of 8%. Most of my WAXP tokens were earned in the previous bull runs while I did a lot of NFT trading and also got involved in many games in their inceptions. This offered me the opportunity to harve...

Top 10 Best Proof-of-Stake Coins: A Comprehensive Guide

8 May 2024 10 minute read 2 comments StealthEX

Proof-of-Stake (PoS) is a consensus mechanism used on blockchains to verify and validate cryptocurrency transactions. Unlike Proof-of-Work, PoS uses less computational power and allows for faster transactions and processing than PoW, making it a more...

Proof-of-Work vs Proof-of-Stake: What Is the Difference?

2 May 2024 6 minute read 1 comment StealthEX

Proof-of-Work vs Proof-of-Stake. With the revolutionary technology known as blockchain, the digital world has entered a new phase of decentralization, transparency, and trust. Fundamentally, a distributed ledger is a safe and impervious to tampering...

Cryptocurrency and the Gig Economy: Is That a Perfect Match? An Analysis in 2024

18 Apr 2024 7 minute read 1 comment letssittt

Introduction In the context of the modern world and the rapidly changing perspective of the global economy, the phenomenon of cryptocurrency and the gig economy coming together is a trend that is gaining more and more attention, as it redesigns the c...

The hardest climb on the Hive blockchain

4 Apr 2024 1 minute read 1 comment Behiver

The hardest climb is not Denali, K2 or Everest. The hardest climb is the mental climb, the internal struggle that we all feel in our regular lives. It lies deep within ourselves and when unbalanced it affects us in every corner of our lives. One that...

FinTech and Crypto Are Teaming Up

25 Feb 2024 2 minute read 3 comments Cje95

One of, if not the biggest, barrier crypto continues to struggle to grapple with is onboarding people into the crypto space. Yes, a ton of work has been done by some very smart people to address this shortcoming but for mass adoption to really take p...

Crypto Staking Goals - The Countdown & The Exit Strategy

24 Jan 2024 3 minute read 0 comments Sapphire Crypto

It’s The Only Way I have been paying a significant amount of attention to up-and-coming staking projects of late. Even in terms of my writing, I have also focused a fair amount of attention on staking ideas and strategies. Much of this has been encou...

Staking & Passive Income - A Must For Every Portfolio

21 Jan 2024 3 minute read 3 comments Sapphire Crypto

One Of Crypto’s Most Attractive Qualities Regardless of your risk tolerance, I believe every portfolio should incorporate staking, as a means of passive income. For those with a much lower risk tolerance, a more reserved approach is advisable. Howeve...