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.


Ethereum's shift to proof-of-stake could finally open the GPU market back up

27 May 2021 1 minute read 0 comments Lukros76

Nvidia recently cited that Ethereum 2.0 might shift the demand of it's GPU's but it's also certain that it would do the same thing for other GPU providers like AMD, Asus and Intel. With Ethereum 2.0 moving from proof-of-work (PoW) to proof-of-stake (...

The Crypto Round-Up: May 26th, 2021

27 May 2021 1 minute read 0 comments coinpass Global

  Ark Investment’s Cathie Wood: BTC Will Hit $500K   With the recent Bitcoin drop, a lot of traders just dump and run. The Ark Investment Management boss, Cathie Wood, said that the recent crypto market was currently “very emotional” so it was not y...

Polygon (MATIC) Explained

25 May 2021 6 minute read 15 comments RelyOnCrypto

The project was previously called Matic or Matic Network before the rebranding to Polygon. Matic was founded in 2017 by three founders who were prominent members of the Indian cryptocurrency community and decided to join forces to address Ethereum sc...

PakCoin (PAK) - A coin for Pakistani People and and for those who like Pakistan.

24 May 2021 1 minute read 2 comments Crypto Mihawk

Hi Folks! I thought that today I'll not write any article, but I ended up being surprised to find this coin called PakCoin (PAK). As the name suggests, PAK is a coin aimed at the Pakistani people and those like their culture or other things. Of cour...

Pandacoin (PND) - A coin for the masses.

21 May 2021 1 minute read 2 comments Crypto Mihawk

Hello Folks!  Today I'll talk about a old coin that was designed for strong adoption and acceptance by countless people. PoW is interesting and fair in most of its conception, but for those looking for a passive and peaceful income and strengthening...

How to stake your ATOM and earn 9%+ APY - step by step guide

21 May 2021 5 minute read 1 comment lukasz_d

Cosmos calls itself 'the internet of blockchains'. It's goal is to connect sovereing blockchains so that they can scale and communicate with each other. Thanks to tools like Tendermint, developers are able to quickly deploy new projects on the networ...

ETHEREUM - WHAT'S THE FUTURE FOR IT?

21 May 2021 1 minute read 4 comments TokenOnFire

As you may have read recently - Tesla does not accept bitcoin anymore over environmental concerns. This may be true for Ethereum as well - well, for the moment it is true.  Just for the record, Ethereum mining consumes 1/4 to 1/2 energy that Bitcoin...

42-coin (42) - Store of value.

19 May 2021 1 minute read 0 comments Crypto Mihawk

Hello Folks!                                                             I'm here again to comment on another store of value coin, but this time it's something very different and quite attractive as well. As everyone knows, one of the most interesti...

zkTube Testnet Smooth Run Marks a Giant Leap for L2

16 May 2021 2 minute read 0 comments Alice Smith

  One small step for zkTube, one giant leap for Layer 2   As one of the most promising expansion solutions, the zkTube protocol has attracted attention since the beginning of the project. The mechanism was first proposed by Vitalik Buterin, a second...

Ethereum market cap is already half of Bitcoin... Get ready for the big flippening

15 May 2021 1 minute read 3 comments Cryptofab

I know the maximalists will hate me. Come on guys... ETH will continue to pump until the EIP 1559 and afterwards... Whereas BTC sucks currently since Elon dropped it. Ok, ETH is not eco-friendly either, but it will be better once ETH 2.0 is fully lau...