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.


TOP 5 Staking Coins 2020

6 Apr 2020 3 minute read 45 comments Cryptonator`s Airdrop Hunt

Coin staking has become an attractive alternative to trading for many crypto investors. Yes, I`m a huge fan of coin staking and I believe that you love it too. That`s why I decided to write this post about it. So here they are, my personal TOP 5 stak...

Top Things You Should Know About Cardano (ADA)

15 Apr 2020 12 minute read 27 comments MuyAsk

Hey guys :) I’m back with yet another comprehensive list of questions and answers, this time for the popular and highly anticipated decentralized blockchain and smart contract platform – Cardano (ADA).  This piece lays everything out on the line so t...

Staking Crypto – Strategy to make Millions!

13 Jun 2020 3 minute read 19 comments SamBTC

If you have read my previous posts you would have found a common theme that is I am a hardcore Bitcoin maximalist. I firmly believe BTC is the king of crypto and will continue to be the leader for decades to come. I had however been looking for some...

Top 5 Crypto Staking Pools In 2020

11 Jun 2020 4 minute read 21 comments Absolute Unit

Staking has quickly become one of the most sought after features in most coins out there, as evidenced by ETH's massive increase in staking eligible wallets with their announcement of ETH 2.0. As long as the price of the coin remains fairly stable, s...

A look at 10 years staking return of Ethereum 2.0

25 Apr 2020 1 minute read 16 comments paragism

Cover Image Source Ethereum project became live in the year of 2015 through a successful fund raising. The idea of developing decentralized applications (DAPPs) caught the public attention very fast. Ethereum was promised to be the world computer. Si...

Earn Passive Income From Staking Crypto

24 Jun 2020 4 minute read 10 comments cryptoforcanadians

I recently wrote a post on the different ways that you can earn interest on your crypto. In that post, I briefly mentioned "staking" and how it's another option to earn crypto on crypto but how it's slightly different from lending it out to earn inte...

Staking Tezos for dummies

10 Apr 2020 2 minute read 6 comments Baking Bad

In Tezos community very often income newcomer questions, such as “I recently delegated and still haven't received any rewards”. It’s quite simple to start staking of purchased Tezos coins - go into the wallet, choose a delegate from the list and pres...

Tezos Liquid Proof-of-Stake for dummies

1 Apr 2020 1 minute read 11 comments Baking Bad

Tezos staking algorithm Tezos blockchain has its own algorithm of consensus  - Liquid Proof-of-Stake. This is a kind of PoS with some nice features.  Typically, in Proof-of-Stake algorithms, such as Delegated PoS, the number of block validators is ti...

Proof of Stake Vs Proof of Work: The quest for healthier consensus algorithm.

4 Jul 2020 8 minute read 4 comments Dzoelx

Unarguably one of the biggest events expected to happen soon on the crypto space is ethereum moving from Proof of Work to Proof of stake. I’m sure a couple of investors just saved up at least 40 ether coins waiting to put them on the stake. Poor me!,...

Top 3 Bullish Facts about Ethereum (ETH) for 2020 and Beyond

4 Feb 2020 5 minute read 17 comments CryptoSorted

If you’re bullish on ETH then this is a time to be more bullish as ETH will be smashing new ATHs in 2020 and the rest of the decade. Ethereum has made more impact on the cryptocurrency space (in terms of contribution to the overall development of the...