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.


Tezos Liquid Proof-of-Stake for dummies

2 days ago 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...

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

4 Feb 2020 5 minute read 17 comments cryptosorted.info

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...

Harmony (ONE) - Good To Invest?

22 Feb 2020 2 minute read 6 comments paragism

Cover Image Source – Digitally modified by the author What is harmony?Harmony is an open infrastructure of future for 10B people. Its revolutionary open infrastructure provides high performance, low latency and low fee platform to power decentralized...

Can DPoS ever suffer a 51% attack?

3 weeks ago 4 minute read 3 comments Mappo

In a previous post, we outlined why the flaws with proof of work (PoW) and proof of stake (PoS) led aelf to choose a different consensus model. The DPoS model aligns closely with our philosophy that the token holders should have the greatest r...

A Mixed Cocktail of Blockchain Consensus Rewards

1 Mar 2020 8 minute read 10 comments BlockchainAuthor

Have Your Stake & Mine It Too This article originally appeared on The Capital and yes, in case you were wondering, I gave myself permission to repost it here. :-) Today we’ll examine critical strengths and weaknesses of the blockchain industry’s mos...

Will ProgPoW Lead To Ethereum Fork in July 2020? [EXPLAINED]

25 Feb 2020 3 minute read 1 comment Brawnd0

So I decided to follow up on Ethereum’s development progress after the recent news that there were plans to bridge XRP and Ethereum. It’s hard to keep up with all that is happening in the crypto space and it’s been a while since I took a proper look...

An introduction to Tezos

10 Feb 2020 19 minute read 6 comments Allen Walters

Tezos main net has been up and running since the summer of 2018 without any major issues. In this period, Tezos' unique on-chain governance model, has since done what it was designed to do and took Tezos though multiple upgrade cycles, improving and...

A response to the article: "Staking - centralization risk"

3 weeks ago 4 minute read 1 comment Allen Walters

This is a response to the article "Staking - centralization risk". The Steem situation is a shitstorm. I'm not going to debate that much, besides the fact that I want to point out that: The fact that Justin could buy up Steemit and gain a large posi...

I Read The Cardano Whitepaper(s). This Is What I Learned.

19 Feb 2020 5 minute read 18 comments SkinnerCrypto

I hear LOTS of people talk about Cardano. Surprisingly, I haven't even touched anything related to it until today and I'm guessing that's because there's like, a GAJILLION different cryptos out there now. Sue me. I have a short attention span. It's f...

Supernode Proof of Stake, the Next Generation of PoS

1 week ago 10 minute read 0 comments falconite

One of the most important aspects of any blockchain network is the consensus algorithm that is used to validate transactions. In centralized systems like Visa and MasterCard, transactions are verified by a host of authorities. On the other hand, in a...