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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.


Is Ethereum's (ETH) Consensus Mechanism Vulnerable? What Would that Mean?

6 hours ago 2 minute read 1 comment Michael @ CryptoEQ

  If you want more cryptocurrency analysis, including full-length research reports, trading signals, and social media sentiment analysis, use the code "Publish0x" when subscribing to CryptoEQ.io to make your first month of CryptoEQ just $10! Or simp...

What do you need to know about “The Merge” and Ambire Wallet?

30 Sep 2022 3 minute read 0 comments AlpinaBG

  Ethereum moved to Proof-of-Stake (PoS) on September 15, 2022 becoming more secure, less energy-intensive, and ready for new scaling solutions. TLDR: Ambire will not support the ETHPoW fork out of the box, but you will able to claim your post-fork P...

Ethereum 2.0 is Officially Launched

28 Sep 2022 4 minute read 2 comments MintDice.com

The time has come! On September 15th, Ethereum 2.0 began its final stages of launch as the consensus layer merged with the Ethereum Mainnet to create the (finally) proof of stake network. This is a big moment in history, and it took a long time to c...

Let's multiply our cryptocurrencies ...

23 Sep 2022 3 minute read 2 comments Nas.A

  I have always told you this in the moon market, which has been going on in the cryptocurrency markets for months; If you haven't sold your assets, STAKING… OK, I said that, but I started to ask myself; So what is STAKING…? I want to talk about stak...

GN//GM- The ONLY NFT that spans the merge of the ETH POW and the ETH POS chain

23 Sep 2022 1 minute read 0 comments vanassen.eth

                       The image shown is a conceptual 1 of 1 piece minted by Cat Russell, a web3 artist and entrepreneur, and creator of the "Otherworlds" art project- links to his available works can be found here.                                 ...

What The ETH MERGE Means For The Future Of The ETH Network

21 Sep 2022 1 minute read 1 comment CryptoCreator

Before we start  I would like to say that this is NOT FINANCIAL ADVICE AND IS FOR ENTERTAINMENT PURPOSES ONLY. It has been about a week since ETH merged to proof of stake. So after the dust has settled how has ETH held up? At first glance, ETH has no...

Aftermath of The Ethereum Merge

20 Sep 2022 2 minute read 0 comments 0xVince

The Ethereum Merge (i.e. The Merge) successfully completed on September 15, 2022, which upgrades the network from PoW (Proof-of-Work) to PoS (Proof-of-Stake). This aims to scale the network and reduce energy consumption, making Ethereum more efficien...

Bitcoin Can Be Carbon Negative?

19 Sep 2022 3 minute read 0 comments Alucard0x

Bitcon is good for turning narratives that the political and economic zeitgeist thought were unturnable. The response is usually a screaming finger pointed back at the status quo along with some half-baked half-mumbled half-truth. To me, "zeitgeist"...

Gary Gensler Backstabs Ethereum

17 Sep 2022 1 minute read 0 comments Alucard0x

Breaking news: Gary Gensler now says that Ethereum in its proof of stake state could trigger securities laws. Are you kidding? 🤪😂 I'm not laughing at Gensler; I'm laughing at the moron ETH maxis who now may have to deal with getting a broker-dealer l...

The Reality of The Ethereum Merge (Somebody LieD)

16 Sep 2022 1 minute read 5 comments Alucard0x

So I guess technically the merge worked, but it definitely didn't bring the results that all of these Ethereum shills were yelling about. This is exactly why I said that I was short term bearish on this entire process. In terms of trading, the merge...