Proof of Stake (PoS)

628 Articles 17 Followers

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 the ETH Staking ETF the demand catalyst for Ether?

14 Feb 2025 1 minute read 0 comments CryptoMax1387

Remember I wrote about the fact that Ether needs a new boost to generate demand. And this could be the turning point. ☝️ 21Shares has applied for an Ethereum ETF with staking, and if the SEC approves it, it could change the rules of the game. What do...

The Upcoming Pectra Upgrade for Ethereum

24 Jan 2025 1 minute read 0 comments Sea.Farmer

$ETH has been struggling significantly to move its price to the expected market target, even as other coins have shown substantial movement over the past few weeks. This price stagnation has been disappointing for $ETH holders for months, as they wer...

KOII Network: A blockchain solution for ecoTrace and the future of the green carbon credit economy

11 Oct 2024 8 minute read 2 comments Slygh Fox

The World is Drowning in Carbon Emissions Not too long ago, carbon emissions (CO2) seemed to be an inevitable part of industrial development. But today, with every ton of CO2 released, we are paying the price through floods, droughts, and irreversibl...

Blockchain – Encryption, Immutability & Truth

19 Sep 2024 3 minute read 0 comments Sapphire Crypto

The Foundation Of The Future The cypherpunk community, largely led by Satoshi, went to great lengths to birth Bitcoin, a peer-to-peer digital cash that has since evolved into an entirely new and unique asset class. Encryption is the foundational laye...

Staking Your Way To The Bull Market Peak

14 Aug 2024 3 minute read 1 comment Sapphire Crypto

The Foremost Focus The current bull market needs to be more kind regarding altcoins. However, as mentioned in “The Most Anticipated Altcoin Season”, much appreciation regarding altcoin gains occur within a matter of weeks, and usually at the tail end...

Staking – The Frictionless Crypto Business Plan

7 Aug 2024 3 minute read 0 comments Sapphire Crypto

Forever Building Passive income ideas have always captured my attention and I am always looking to expand my passive income portfolio. With altcoin valuations still being so low, it remains quite a challenge. However, once the altcoin market finally...

Crypto Inflationary Models – The New Bread & Butter

21 Jul 2024 3 minute read 0 comments Sapphire Crypto

Turning The Tables For the longest time, only a select group of individuals enjoyed the benefits of inflation. That’s right, while much of society is burdened by inflation, some benefit. The Cantillon Effect is a dynamic worth studying regarding this...

Blockchain Interoperability – The Translational Power Of Polkadot

12 Jul 2024 3 minute read 0 comments Sapphire Crypto

Layer 0 Changes The Game In the past several years layer 1s have enjoyed a significant level of success and attention, with chains like Ethereum, Solana, BNB, and many others stealing the limelight. However, layer 0 projects such as Polkadot extend t...

HBD Savings - Collect, compound and repeat | June 2024

21 Jun 2024 2 minute read 0 comments Behiver

Another month has passed and while my yields from HBD savings compounded I got to the date when I can claim them. While the Hive price seems to have gone down the drain for a bit, seeing the HBD stablecoin numbers growing up simply gives me peace of...

Ethereum Staking: Navigating Centralization Risks in a Proof-of-Stake Ecosystem

13 Jun 2024 6 minute read 1 comment Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $40/month you can upgrade to our FULL library of 60+ reports (including this one) and complete industry-leading ana...