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.


The Most Important Development You Never Knew

14 Aug 2019 5 minute read viraladmin $5.07 tipped

Most people in the cryptocurrency industry have heard of the consensus mechanisms called Proof of Work (PoW) and Proof of Stake (PoS). Today I want to introduce you to a lesser known proofing mechanism and why this mechanism is so important. Proof of...

Every thing you should know about proof of stake

14 Aug 2019 5 minute read qsyal $0.06 tipped

If you have been doing a research on cryptocurrencies ,ICOS or Altcoins you might have heard about this the words "Proof of work(POW)", and "proof of stake(POS)".   In this post I'll simply explain about both techniques and show the significant diffe...

Mining by Leasing Proof of Stake (LPoS) Waves

6 Aug 2019 3 minute read Thiago Capuano $0.93 tipped

We have already heard of the rewards received for acting to aid blockchain decentralization through block confirmations, especially the most well-known Proof of Work (PoW) and Proof of Stake (PoS). This article will cover the Waves Leasing Proof of S...

Four Quark coins

23 Jul 2019 2 minute read tsakf $0.14 tipped

Cryptocurrency, uses a hashing algorithm, to find out a cryptographic solution, to let the first miner, who found it, to create a block. When a block is created, the miner can put transactions on it, When this happens, the miners, gets the transactio...

New Listing Proof of Stake (POS) and Masternode Coins #Week27

8 Jul 2019 1 minute read poscoins.co $0.32 tipped

StackOfStake listed GenesisX (XGS) Masternode Coin! StackOfStake is a full automatic shared masternode service. A powerful backend is used to perform all masternode administration and maintenance operations, all results are displayed in a simple an...

Adventures in Staking: Part II - Ark, Neo, and others

28 Jun 2019 5 minute read CryptozNewb $2.05 tipped

In the first part of this article, I talked about several coins I had investigated, two of which require Active Staking, which means you need to run and maintain a network node. Something that was relatively easy to do, but required the attention and...

MyCointainer Review

27 Jun 2019 1 minute read LiteLiger $0.12 tipped

MyCointainer Review Time to look into another proof of stake / masternode service that allows you to deposit popular coins and it will stake it for you in exchange of 9% fee. The service is registered at Estonia, which gives lot of credibility for t...

Safeinsure (SINS) Prediction

24 Jun 2019 1 minute read benzmuircroft $0.52 tipped

My prediction: Safeinsure will begin on a steady uptrend after slight flat trend. Safeinsure is generally a nice stable currency mostly because of it's listing on multiple top exchanges. The upcoming rise in BTC price past 10K should bring an uptren...

Adventures in Staking: Part I - Neblio, Navcoin, and Waves

23 Jun 2019 8 minute read CryptozNewb $3.04 tipped

This article is about my experiences and returns on staking various cryptocurrencies over the past year or so. Unfortunately, my timing was not so great, as many of these coins were purchased in the first half of 2018 and all have lost considerable v...

Simple PoS Pool Review

22 Jun 2019 1 minute read LiteLiger $0.07 tipped

Simple PoS Pool Review One of the projects ive been jumping lately are proof-of-stake based coins and also Crypto that are paying dividends, but today we are gonna focus on a service called Simple PoS Pool, which allows people to stake their coins i...