606 Articles 17 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.
16 Sep 2022 4 minute read 1 comment UniFarm
Ethereum Merge has proved to be a historic event in the not-so-long history of cryptocurrencies and blockchains. While some people are eager to be the first witness of the merge as they keep an eye on the countdown, some people are still wrapping the...
15 Sep 2022 2 minute read 0 comments Greenchic
From Ultrasound.money I may have had a hectic day, but that did not hamper me from exclaiming a Woohoo with delight when I checked that today Ethereum Blockchain has successfully completed the Merge. Ethereum Merge Countdown Clock and tracker So, E...
15 Sep 2022 4 minute read 0 comments CryptoJD
Ethereum is one of the most popular cryptocurrencies on the market today. This popularity is due in part to its unique verification mechanism, which is known as proof-of-stake (PoS). PoS is touted as using at least 99 percent less energy than blockch...
15 Sep 2022 1 minute read 0 comments Hamminy
Bullish long-term on $ETH price. All of the ESG zombies now have someplace to park their cash and be compliant with their overlords. Bearish short-term on $ETH price. The selloff from speculators paying back ether loans and selling/bridging PoW ETH i...
14 Sep 2022 1 minute read 2 comments Yugocean
Ethereum critic Udi Wertheimer has considered the rewards from PoS as no-yield and hinted at it as a penalty for those who do not stake. In his argument, Wertheimer also calls the stakers fools. It can be assumed that when Wertheimer made his claim,...
13 Sep 2022 3 minute read 1 comment Cje95
This week a ton of the talk and attention, rightfully so, is aimed at both the upcoming Ethereum "Merge" and also the U.S. CPI or inflationary numbers. The inflation data will be released tomorrow morning and with it, we will be able to not only get...
11 Sep 2022 1 minute read 4 comments Hamminy
If I were a conspiracy theorist, I'd say this was totally planned. News from the US comes out that Congress is considering legislation to ban PoW mining at the same time Ethereum is ready to move to PoS. The United States would benefit greatly from #...
11 Sep 2022 3 minute read 3 comments Hamminy
When the Ethereum merge happens, it will create two blockchains — one that will just be called Ethereum and the other, PoW ETH. No, the current ETH chain won't be going anywhere. It will continue to exist. Developers can still build stuff on it if th...
9 Sep 2022 1 minute read 0 comments Stormgain
As soon as next week, Ethereum could move away from miners' services when it shifts the burden on validators. Public mining companies are looking at altcoins to reconfigure their equipment to. According to White Rock CEO Andy Long, GPU mining will ne...
8 Sep 2022 3 minute read 8 comments Hamminy
All the idiotic lemmings bloviating about the #ETHMerge/PoS superiority almost makes you forget where they got their dumbass little reductionist attitude from — the BTC maxis. BTC maxis are the original horse-blinders-on full-speed ahead brick-for-br...
