Proof of Stake (PoS) - News, Opinion & and Analysis

Proof of Stake (PoS)

229 Articles 9 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.


TOP 5 Staking Coins 2020

6 Apr 2020 3 minute read 45 comments Cryptonator`s Airdrop Hunt

Coin staking has become an attractive alternative to trading for many crypto investors. Yes, I`m a huge fan of coin staking and I believe that you love it too. That`s why I decided to write this post about it. So here they are, my personal TOP 5 stak...

#5 Altcoins simple. Cardano - The Internet of Blockchain - Is it an investment?

5 Apr 2020 2 minute read 2 comments Oliver Singer

What is Cardano? Cardano is a Blockchain platform, which aims at running smart contracts. The Cardano-Foundation is working with academics and scientists in order to build a strong network, that makes sure, that the further development of the cardan...

Beginner’s Guide to Staking and Masternode Platforms

5 Apr 2020 3 minute read 1 comment Crypto Adventure

With the advent of Proof-of-Stake currencies, a lot of connected services have started to emerge. Innovation in the Proof-of-Stake consensus algorithm lead to an increase in the number of platforms that help the average investor, developers and enthu...

Ethereum 2.0 Explained and How Elastos Project Has Already Solved Several Issues

1 Apr 2020 3 minute read 0 comments PNin

Ethereum 2.0.  In 2017, cryptokittes was launched on the Ethereum network; it caused massive congestion issues. The Ethereum blockchain was not able to handle all of the transactions that flooded the network, gas prices skyrocketed, and the network...

Tezos Liquid Proof-of-Stake for dummies

1 Apr 2020 1 minute read 11 comments Baking Bad

Tezos staking algorithm Tezos blockchain has its own algorithm of consensus  - Liquid Proof-of-Stake. This is a kind of PoS with some nice features.  Typically, in Proof-of-Stake algorithms, such as Delegated PoS, the number of block validators is ti...

Why Algorand Is Your Number One Solution For Staking

30 Mar 2020 1 minute read 0 comments Sapphire

The Algorand Blockchain Enters The Limelight The last few months have seen Algorand release one staggering accomplishment after another. Though I suspect many would not consider the SOV building their national digital currency using Algorand technolo...

Is Bitcoin 2 the new Bitcoin

28 Mar 2020 1 minute read 0 comments Cooldudue

I believe the best way to reach an evaluation of bitcoin 2 is to compare it to the OG bitcoin since bitcoin 2 claims to be the best bitcoin alternative. Both cryptocurrencies have the same maximum supply of 21 million. On 5 February 2018 bitcoin 2 fo...

Supernode Proof of Stake, the Next Generation of PoS

24 Mar 2020 10 minute read 0 comments falconite

One of the most important aspects of any blockchain network is the consensus algorithm that is used to validate transactions. In centralized systems like Visa and MasterCard, transactions are verified by a host of authorities. On the other hand, in a...

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...