Proof of Stake (PoS)

50 Articles 1 Followers

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.

Beginners' Guide to Crypto: Introduction to Proof of Stake

1 week ago 3 minute read Incent $3.28 tipped

A previous article looked at Proof of Work, the energy-intensive means by which Bitcoin’s security is maintained and transactions are processed. As a Waves token, Incent relies on a version of the more streamlined Proof of Stake consensus model. In a...

Navcoin: A proof of stake coin for creating and issuing other tokens on its platform

5 days ago 4 minute read quintomudigo $0.16 tipped

    Navcoin is a native cryptocurrency of the Navcoin blockchain platform  created on the Navcoin blockchain network platform whose transaction takes place from one peer to another without involvement by the government thus is being considered to b...

wanchain coin: A proof of stake coin for allowing transfer of assets from other blockchain to wanchain blockchain

1 week ago 5 minute read quintomudigo $0.57 tipped

  Wanchain coin is a native cryptocurrency of the wanchain blockchain platform that results from the ethereum folk code created on the wanchain blockchain network platform whose transaction takes place from one peer to another without involvement b...

IOTEX coin: A delegated proof of stake coin for the internet of trusted things devices

1 week ago 5 minute read quintomudigo $0.01 tipped

                IOTEX coin is a native cryptocurrency of the IOTEX blockchain platform which was issued on the Ethereum blockchain network but later on the swapping of its coin started to take place in 2019 at ratio 1:1 on its mainet IOTEX network...

Ethereum will be more secure than bitcoin after pos update

1 week ago 1 minute read CryptoArgha $0.12 tipped

Ethereum is worlds second largest crypto currency  in terms of daily traded volume   Recently the devs of  Ethereum implementing a new Pos (proof of stake) Algorithm on the Ethereum blockchain    On Ocotobor 10 in a Devcon conference of Ethereum whic...

Spectrecoin Newsletter (February 2019)

12 Feb 2019 6 minute read SpectreCoin $13.05 tipped

Welcome to the Spectrecoin February 2019 newsletter and development update. Over the last month, there have been some major shifts in the exchange landscape as far as Spectrecoin is concerned. [First a note about the Cryptopia Hack] On 14/01/2019 our...