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.


Proof-of-Stake (PoS) Consensus Mechanism Review

24 Mar 2020 6 minute read 1 comment Changelly

Proof-of-Stake (PoS) Consensus Mechanism Review It’s not a secret that blockchains are based on certain algorithms of consensus to enable transactions and data exchange. Bitcoin was the pioneer in the sphere with the proof-of-work mechanism, but it’s...

Proof of Stake, The Best Way to Earn Crypto Currencies

23 Mar 2020 2 minute read 2 comments CryptoPk

The question arises in your mind why proof of stake? and what are the benefits of it to earn cryptocurrencies. Well, the answer is Proof of Stake aka PoS is the easiest way so far to earn cryptocurrency without any hashing power. When you are earning...

Proof of Stake and Ethereum 2.0

23 Mar 2020 1 minute read 0 comments SylarHeisenberg

The Ethereum Blockchain is facing big changes. Vitalik Buterin has now bundled the step-by-step development of Ethereum 2.0 into a roadmap. In a recently published roadmap, Vitalik Buterin has taken a look at the development of Ethereum 2.0. The Ethe...

NULS — Telegram AMA & QUIZ — March 11

18 Mar 2020 19 minute read 0 comments NULS

    On Wednesday, March 11, we had the pleasure to welcome to our Telegram chat: Berzeck, NULS Western Regional Director. We asked him questions about the development of NULS, currently ranked 161 on CoinMarketCap. Some sentences have been slightly...

Nuls: Staking

18 Mar 2020 1 minute read 0 comments NULS

#StakingOur award-winning Proof of Credit consensus mechanism secures the NULS network by combining Delegated Proof of Stake with an added credit rating feature. Operate a NULS masternode or stake into a node to start earning NULS in minutes. #How to...

The Value of Real-World Problem Solvers

12 Mar 2020 1 minute read 0 comments valuevision

PoS systems incentives miners and mining equipment producers only. You buy it and then you hodl it. You do nothing with it. You store it on your Ledger and wait for price to increase. Traders make some profit on it. I think BTC can be a store of valu...

Can DPoS ever suffer a 51% attack?

11 Mar 2020 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...

Ethereum 2.0 Proof of Stake?

10 Mar 2020 5 minute read 1 comment CryptoPk

A few quick disclaimers before we kick-off to discuss the Ethereum 2.0. I am not a financial advisor so, please consult yours before considering any investment on the crypto network specifically due to its high volatility.  What is Ethereum 1.0 befor...

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

9 Mar 2020 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...

My Partial Tezos Rewards Summary.

3 Mar 2020 5 minute read 0 comments TiddyBit

Hey everyone! Its been a while since I last wrote something. I've been kinda busy, had to put some crypto things on back burner for a little bit there. Hoping you all didn't suffer to much from the downwards motion we have been experiencing and hopin...