Proof of Stake (PoS) - News, Opinion & and Analysis

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.

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30 Jun 2021 4 minute read 0 comments ralleeee12

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27 Jun 2021 2 minute read 2 comments RitabeII

With the glaring pitfalls of proof of work (PoW) consensus – high energy costs and others – which open-source blockchains, like Ethereum depend on towards safeguarding the chain against economic attacks, there has been a gradual transition to the les...

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27 Jun 2021 1 minute read 0 comments Cappex

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21 Jun 2021 4 minute read 1 comment

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19 Jun 2021 1 minute read 2 comments Defiant Pathfinder

Staking is when you lockup your crypto assets for a certain period and get rewards in returns it can either be Annual Percentage Yield (APY) and you get compound interest in this or it can either be Annual Percentage Rate (APR), e.g you can stake NOW...

Staking With Cardano

18 Jun 2021 1 minute read 0 comments Loomy

  As Cardano (ADA) continues to grow there are many people who do not know about the staking functionality.   With Cardano being a fully operational Proof of Stake (PoS) there is a reward of around 5% returns for staking your coins.     To use this...

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16 Jun 2021 4 minute read 5 comments

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Traditional POS, Lending Or DeFi?

13 Jun 2021 3 minute read 4 comments Sapphire

Proof Of Stake When the previous bear market began to heat up in 2018, I began to think beyond the entry level economics of buy low, sell high. One of the methods I came up with was staking proof of stake coins. Something you need to be aware of, a l...

Beyond POW/POS Resources For Consensus

9 Jun 2021 1 minute read 0 comments Sisyphuspush

Charles Hoskinson released a video recently discussing the similarities and differences of the Proof of Work (PoW) and Proof of Stake (PoS) resource models used for consensus on various blockchain projects. In it he also looks ahead to what types of...

Proof of Stake (PoS)

9 Jun 2021 6 minute read 1 comment CryptoWingnut

In previous articles about blockchain technology, I mentioned there was other methods for maintaining the network besides having miners compete to solve cryptographic equations and win rewards, which is the traditional Proof of Work (PoW) consensus m...