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.


Proof of Stake: scam or no scam

3 days ago 4 minute read viraladmin $2.95 tipped

In yesterdays article 10 simple rules of avoiding cryptocurrency scams I had two comments, one from @beachbummer and one from @yanika, that both suggested Proof of Stake coins should be the exception to my rule "Never trust the words passive earnings...

How To Stake POS Cryptocurrencies

1 day ago 3 minute read arcanu $0.44 tipped

In the crypto sphere, all transaction need to get validated, that's the one thing every blockchain has in common. Until a while ago, the most common validation system was mining or 'Proof-of-Work' which is known to use huge amounts of electricity, an...

How To POS BeanCash

20 Jun 2019 1 minute read bitcoinflood $0.37 tipped

When starting out with POS you can end up making a number of mistakes. That is why when first getting into POS (Proof of stake) coins you should start out with a low cost but profitable coin. One such coin I like to use is called BeanCash which curre...

September 2019

2 weeks ago 15 minute read SpectreCoin $1.46 tipped

Welcome to the September 2019 Spectrecoin newsletter, the first after a long summer break. There are some exciting development updates and a sneak peak into what we are working on. The team as always, works to improve the security of the wallet as we...

What is Elrond network?

2 weeks ago 5 minute read Crypto Beeporter! $0.05 tipped

Elrond is a scalable value transfer protocol for the digital economy and the first dApp to run on a truly state sharded architecture with Aiming 10k tx/sec, minimal latency and negligible fees. A Highly Scalable Public Blockchain via Adaptive State...

Four coins with a modified proof-of-stake consensus

2 weeks ago 2 minute read tsakf $0.12 tipped

There are many different blockchain consensus for cryptocurrency. One of the widely known and used, is the proof-of-stake consensus. Human creativity is always here, and some coins, modified the proof of stake consensus, to fit their needs better. We...

Earn money without doing anything

21 Aug 2019 1 minute read beachbummer $0.20 tipped

The concept of passive income has always been appealing to many people. Who doesn't want to earn an extra buck by doing nothing? Well, to get there you will still need to do something first, which is to obtain an asset that generates passive income f...

The Most Important Development You Never Knew

14 Aug 2019 5 minute read viraladmin $4.76 tipped

Most people in the cryptocurrency industry have heard of the consensus mechanisms called Proof of Work (PoW) and Proof of Stake (PoS). Today I want to introduce you to a lesser known proofing mechanism and why this mechanism is so important. Proof of...

Every thing you should know about proof of stake

14 Aug 2019 5 minute read qsyal $0.05 tipped

If you have been doing a research on cryptocurrencies ,ICOS or Altcoins you might have heard about this the words "Proof of work(POW)", and "proof of stake(POS)".   In this post I'll simply explain about both techniques and show the significant diffe...

Mining by Leasing Proof of Stake (LPoS) Waves

6 Aug 2019 3 minute read Thiago Capuano $0.89 tipped

We have already heard of the rewards received for acting to aid blockchain decentralization through block confirmations, especially the most well-known Proof of Work (PoW) and Proof of Stake (PoS). This article will cover the Waves Leasing Proof of S...

Four Quark coins

23 Jul 2019 2 minute read tsakf $0.14 tipped

Cryptocurrency, uses a hashing algorithm, to find out a cryptographic solution, to let the first miner, who found it, to create a block. When a block is created, the miner can put transactions on it, When this happens, the miners, gets the transactio...

New Listing Proof of Stake (POS) and Masternode Coins #Week27

8 Jul 2019 1 minute read poscoins.co $0.32 tipped

StackOfStake listed GenesisX (XGS) Masternode Coin! StackOfStake is a full automatic shared masternode service. A powerful backend is used to perform all masternode administration and maintenance operations, all results are displayed in a simple an...

Adventures in Staking: Part II - Ark, Neo, and others

28 Jun 2019 5 minute read CryptozNewb $2.05 tipped

In the first part of this article, I talked about several coins I had investigated, two of which require Active Staking, which means you need to run and maintain a network node. Something that was relatively easy to do, but required the attention and...