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.

Cryptocurrencies: From Bitcoin to the Algorand Protocol and the Peer-to-Peer Basics 🖥️🔛🖥️

12 Oct 2020 12 minute read 6 comments geocrypto

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10 Feb 2020 26 minute read 10 comments Allen Walters

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15 Apr 2020 12 minute read 28 comments MuyAsk

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11 Oct 2020 5 minute read 0 comments CryptoN0ob

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14 Oct 2020 2 minute read 0 comments widecast

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Stake & bake: getting more crypto

1 Sep 2020 2 minute read 6 comments Spitkitten

I'm staking Tezos. It's cool. My Tezos are magically making more Tezos. In my Trust Wallet (along with a buncha other wallets and exchanges, likewise), I don't even have to do anything except designate my # of Tezos, hit "stake" and then, sit back an...

The Book That Changed My Investing Life

14 Sep 2020 4 minute read 4 comments johnwege

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MyCointainer: The Ultimate Staking & Masternode Platform for Maximized Staking Rewards

14 Sep 2020 4 minute read 4 comments Crypto Adventure

Trading and generating income from cryptocurrencies can be tedious and challenging. Crypto mining has been the main way to release new coins into the crypto world since the introduction of bitcoin in 2009. Unfortunately, mining comes with several sig...

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...