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.


The Most Important Development You Never Knew

14 Aug 2019 5 minute read viraladmin

Most people in the cryptocurrency industry have heard of the consensus mechanisms called Proof of Work (PoW) and Proof of Stake (PoS). Today I want to introduce you to a lesser known proofing mechanism and why this mechanism is so important. Proof of...

Spectrecoin Newsletter (February 2019)

12 Feb 2019 6 minute read SpectreCoin

Welcome to the Spectrecoin February 2019 newsletter and development update. Over the last month, there have been some major shifts in the exchange landscape as far as Spectrecoin is concerned. [First a note about the Cryptopia Hack] On 14/01/2019 our...

Beginners' Guide to Crypto: Introduction to Proof of Stake

14 Oct 2019 3 minute read Incent

A previous article looked at Proof of Work, the energy-intensive means by which Bitcoin’s security is maintained and transactions are processed. As a Waves token, Incent relies on a version of the more streamlined Proof of Stake consensus model. In a...

9 Most Profitable Proof of Stake Coins (PoS) Right Now!

9 Jan 2020 11 minute read GoCryptoWise

In this article, we will explore the popular subject of Proof of Stake (PoS) blockchains and the passive income that you can earn from staking your PoS coins on those blockchains. In this article, we’ll be wholly focused on the Proof Of Stake system...

Tezos: an overview

23 Nov 2019 8 minute read Allen Walters

These are some of the important points that define Tezos: Funding system. Governance model. Liquid PoS, not to be confused with DPoS. Institutional-grade smart contracts. The building of a developers community. Funding system:Tezos has $650 millio...

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

15 Dec 2019 3 minute read 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...

V4.1 Release Update

14 Nov 2019 3 minute read SpectreCoin

Latest wallet download:https://spectreproject.io/index.html#downloads We have just released Spectrecoin v4.1, now available to download from our website. This release introduces so called “Mnemonic seed” wallet backup which greatly improves the secur...

How To Stake POS Cryptocurrencies

19 Dec 2019 3 minute read 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...

Adventures in Staking: Part II - Ark, Neo, and others

28 Jun 2019 5 minute read CryptozNewb

In the first part of this article, I talked about several coins I had investigated, two of which require Active Staking, which means you need to run and maintain a network node. Something that was relatively easy to do, but required the attention and...

September 2019

3 Sep 2019 15 minute read SpectreCoin

Welcome to the September 2019 Spectrecoin newsletter, the first after a long summer break. There are some exciting development updates and a sneak peak into what we are working on. The team as always, works to improve the security of the wallet as we...