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.


How To Stake POS Cryptocurrencies

19 Dec 2019 3 minute read 3 comments arcanu

In the crypto sphere, all transactions 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, a...

The risks and rewards of cryptocurrencies

16 Dec 2019 2 minute read 0 comments ChrissCrypto

Cryptocurrencies are with us for over 10 years, over that time we have seen some impressive growth in this field. Cryptocurrencies such as Bitcoin or Ethereum, or even some smaller contenders, can grow over 1,000% and more, in one year alone. These n...

How to tell if an altcoin has the potential to grow?

15 Dec 2019 3 minute read 6 comments ChrissCrypto

  Introduction to altcoins The word “Altcoin” is used as a name for every cryptocurrency which came after Bitcoin. So altcoins are both industry-leading coins like Ethereum, Litecoin or EOS, as well as newer, smaller cryptocurrencies. As we all know...

STAKING: StackOfStake Staking Report

14 Dec 2019 1 minute read 2 comments msimyunn

Disclaimer: This may seems unnecessary, but still I am obliged to put this disclaimer, that this post is merely informative and that readers are responsible for their actions with regards to their money. Also, the post contains referral links, and t...

Staking Loom coin: Learn how to stake loom coin

11 Dec 2019 4 minute read 0 comments quintomudigo

Loom is a native coin of the loom network created and issued on the ethereum network. As a native coin of the loom network,loom coin can be used by developers of the loom network to pay for the transaction of their Dapps on the loom network. One user...

Binance asking 0% fee over XTZ staking rewards. An issue?

9 Dec 2019 2 minute read 1 comment Allen Walters

Tezos is a smart contract platform. The Tezos' blockchain uses a PoS consensus mechanism called LPoS. Holders of XTZ can bake or delegate their coins and earn PoS rewards. People running a node, are called bakers. People who don't want to run a node,...

Is Cardano (ADA) a Good Investment? In-depth Analysis and Near to Longer-Term Expectations

9 Dec 2019 6 minute read 13 comments CryptoBoomer

A lot of cryptocurrency projects have emerged since Ethereum showed the world that a blockchain network could be used for much more than payments. If Bitcoin was the king of cryptocurrencies, Ethereum and the countless altcoins that followed were the...

Types of Blockchain Consensus Protocols

3 Dec 2019 3 minute read 0 comments ChrissCrypto

  Consensus algorithms are the foundation of cryptocurrencies and blockchain in general. They allow transactions to be secured and verified without the use of a central authority. Simply put, a consensus algorithm/protocol is a procedure where all th...

Staking Tomochain coin: Learn how to stake tomochain coin

29 Nov 2019 3 minute read 0 comments quintomudigo

Tomochain is a native coin of the Tomochain platform. The Tomochain coin can be transferred from one smart contract address to another. The first smart contract address must pay a gas fee in order for the transaction to reach the second smart contrac...

MyCointainer helps crypto developers by enabling and taking the cost for running 100 masternodes

24 Nov 2019 2 minute read 2 comments ChrissCrypto

A brief introduction to Masternodes Masternodes weren’t always part of the blockchain consensus. It’s relatively new concept dated back to May 2015 when Dash (or rather Darkcoin which was Dash’s name at that time) introduced this concept for the firs...