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.


Ethereum developers raise the alarm about too many validators

25 Sep 2023 1 minute read 0 comments Stormgain

After the switch to PoS, the network began to rely on validators instead of miners, and users were happy with the opportunities to make passive income. Ethereum staking became so attractive that even pressure on the staking programme in the US and it...

Ethereum hits new lows against Bitcoin since PoS switch

22 Sep 2023 2 minute read 2 comments Kovichni

ETH just broke the crucial 0.06 BTC support line and is now trading at a new all time low since they switched from PoW to PoS just over one year ago. It's not exactly uncharted waters for ETH since it had been trading lower than that before, but some...

Ethereum Unleashed: Decentralizing the Future

13 Sep 2023 2 minute read 1 comment Crypto Chicken

Crypto Chicken: Ladies and gentlemen, today we have a special guest in our "BitChat: Talking Tokens" series. Please welcome Ethereum, one of the most influential cryptocurrencies in the blockchain space. Ethereum, thank you for joining us today. Ethe...

New & Under The Radar High-Yield Staking Projects

12 Sep 2023 4 minute read 3 comments Sapphire Crypto

A Strong Arm Having a number of PoS projects as part of your passive income infrastructure is always a good idea. There are generally two ways to go about this idea. Either, you remain with the blue chips such as Solana, Polkadot, and Cosmos… or you...

Does Algorand's PPoS Beat Out Regular Proof of Stake??

12 Sep 2023 3 minute read 0 comments Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $20/month you can upgrade to our FULL library of 50+ reports (including this one) and complete industry-leading ana...

HOW CRYPTO WORKS: INTRODUCTION TO BLOCKCHAIN PROTOCOLS. Exploring Proof of Work or Proof of Stake.

9 Sep 2023 6 minute read 0 comments elena_did

I bet you had wondered at least one time how crypto works. And I bet you wonder it especially after all buzz about cryptocurrencies, new coins which rise their prices over night(PEPE the frog) and in the morning they are forever gone or the fights be...

Proof-of-Stake Takes on the Scalability Challenge

4 Sep 2023 3 minute read 0 comments Kriptique

Blockchain Scalability: Part Three   -- How next-generation blockchain projects achieve potentially infinite scalability --   In terms of immutability and security for a decentralized network, Bitcoin is rock solid, but that comes at a cost of scalab...

Why Is Cosmos' Consensus Mechanism, Tendermint, So Popular?!

2 Sep 2023 5 minute read 3 comments Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $20/month you can upgrade to our FULL library of 50+ reports (including this one) and complete industry-leading ana...

Proof Of Stake Upgrade and Cold Staking Shift - Callisto Network

31 Aug 2023 1 minute read 0 comments Callisto Network

Key Changes and Timelines You Need to Know We want to bring to your attention crucial changes concerning the future of Callisto Network. As part of our ongoing commitment to innovation and improvement, we plan a significant update through upcoming Ha...

Why Should You Stake Cryptocurrency?

18 Aug 2023 4 minute read 0 comments MintDice.com

Here on MintDice.com we talk a lot about cryptostaking. Cryptostaking is the process of investing money in a platform's liquidity pool or consensus mechanism for the purpose of gaining returns. Cryptostaking isn’t for everyone, but it can be a great...