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.


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

9 Jan 2020 11 minute read 10 comments 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...

How to buy Waves (WAVES) on MyCointainer with Bitcoin (BTC)

5 Jan 2020 2 minute read 0 comments ChrissCrypto

MyCointainer is not only your ultimate automated PoS and Masternode Coin Staking platform, but it's also a gateway for everyone to buy Bitcoin with Fiat money (EUR, USD...) or exchange Bitcoin to many available altcoins (ETH, WAVES, TRX...) as well....

Staking FREE REDDCOIN update

1 Jan 2020 1 minute read 3 comments unicorngirl

For those of you who saw my first post/ video you know that I am doing a little experiment using free RDD.  The purpose of this was basically to see if someone could use faucets and get enough coins to stake.  The short answer to this is yes.   Howev...

Daps coin listed inside Stakecube platform

23 Dec 2019 1 minute read 0 comments Lucian Nagy Composer Multi ethnic instrumentalist

Daps coin started its journey inside Stakecube platform. As many of you maybe know that Stakecube is one of the greatest platforms for staking protocol inside this vast crypto blockchain. You can join here and invest in Daps coin as well for staking:...

How DeFi platforms can prevent the risk of centralization in cryptocurrencies that rely on POS protocols

23 Dec 2019 2 minute read 0 comments Roberto D.

One of the main problems of blockchain coins concerns the so-called scalability trilemma that we have already talked about on several occasions; for those unfamiliar with the topic we begin to explain that a trilemma is nothing more than a three-vari...

How To Stake POS Cryptocurrencies

19 Dec 2019 3 minute read 3 comments 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...

The risks and rewards of cryptocurrencies

16 Dec 2019 2 minute read 0 comments ChrissCrypto

Cryptocurrencies are with us for over 10 years, over that time we have seen some impressive growth in this field. Cryptocurrencies such as Bitcoin or Ethereum, or even some smaller contenders, can grow over 1,000% and more, in one year alone. These n...

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

15 Dec 2019 3 minute read 6 comments 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...

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,...

Types of Blockchain Consensus Protocols

3 Dec 2019 3 minute read 0 comments ChrissCrypto

  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...