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.

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 Chriss

  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 Chriss

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...

Tezos: an overview

23 Nov 2019 8 minute read 3 comments 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...

Atomic Wallet added Tezos staking option today.

22 Nov 2019 1 minute read 0 comments Allen Walters

Tezos' Liquid PoS consensus algorithm makes it real easy to get staking rewards for anyone who holds XTZ. Liquid PoS, gives holders the opportunity to bake (run a node) or delegate (point your XTZ towards a baker who will then receive, a small percen...

The Current State Of Staking Ecosystem

21 Nov 2019 4 minute read 0 comments Griffex

Introduction Staking, about cryptocurrency and blockchain technology, refers to; depositing cryptocurrency into a coinwallet of one’s choice for them to receive a reward after a certain amount of time predetermined by the coin’s network. Primarily, i...

How staking enables passive income earning in crypto

19 Nov 2019 2 minute read 0 comments Chriss

  The basic behind Proof-of-Stake and cryptocurrency staking The main purpose of Blockchain is to fulfil the role of trustworthy and decentralized digital ledger that is used to record transactions across many computers so that any involved record ca...

0x(ZRX) coin: An 0x DEX coin rewarding Dapps creators for linking their platform to the DEX for easy swapping of ERC20 tokens

19 Nov 2019 4 minute read 0 comments quintomudigo

        0x which is abbreviated as ZRX coin is a native cryptocurrency of the  0x decentralized platform  created and issued on  the ethereum blockchain network  whose transaction takes place from one peer to another without involvement by the gover...