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.

Ampleforth in focus, the self adjusting stablecoin

23 Aug 2021 2 minute read 3 comments Austras

Ampleforth is a interesting approach to solve the problem with crypto's volatility, adjusting the supply based on the coin's current spread to the US-dollar. We explored different cryptos in the past and Maker is the closest solution with the asset b...

As Crypto Soars: Are You Taking Profits?

14 Aug 2021 2 minute read 0 comments Plint

Crypto has been booming so far in August and many portfolio's that turned red after May are now turning green again. This of course brings the age old question: What are you going to do with your earnings? I'd like to put a couple of options in a ro...

Delegators and Validators (DPoS)

12 Aug 2021 3 minute read 0 comments flarnrules

This is an excerpt from the Flarnchain Newsletter. Sign up here to receive Flarnchain in your inbox each and every week.   Validators and Delegators What is the Delegated Proof of Stake (DPoS) protocol? Well, it's a blockchain consensus mechanism t...

What is a Consensus Method?

7 Aug 2021 5 minute read 0 comments

Understanding the cryptocurrency world is no easy feat. Especially because cryptocurrency is built on a new type of technology that not many people understand known as a blockchain. Blockchains use something known as a consensus method to function....

What Is Staking Crypto Coins? Quick Start Guide

31 Jul 2021 5 minute read 22 comments StealthEX

In this article, you will learn what staking crypto is. Find out the differences between Proof of Work (PoW) and Proof of Stake (PoS). Discover types of crypto staking and much more useful information. What Does Staking Mean In Crypto? Staking crypto...

Cake DeFi Goes for Gold || Cake DeFi's Olympic Bake-Off Promotion.

23 Jul 2021 1 minute read 0 comments FreedomBuilder

  🏦 DFI Token is Already listed on Coinmarketcap in many good Exchanges like Kucoin, Bittrex & Latoken. 🎁 Total Reward: Receive $50 in DFI for an easy Sign up, verified identity & a minimum deposit of $50.🔶 If you want, you can put $100 in total to s...

Tezos, why I am super BULLISH !!!

22 Jul 2021 6 minute read 0 comments mattbesancon1

Tezos is here to stay ! Ok guys, in today's post, let's review this gem because it clearly is here to stay ! I know, i know, everything has been said about it already, but i truly believe that the best is yet to come, and here is why.   QUICK OVERVIE...

Ethereum 2.0 & Staking: What Is At Stake?

19 Jul 2021 10 minute read 4 comments CryptoWise

A Comprehensiveness Guide To Staking On Ethereum 2.0 For Beginners! I feel: When people’s financial freedom is at stake, technology has to be made accountable and reliable. ETH 2.0 has a lot at stake with this 2.0 avatar Ethereum 2.0 has one key c...

Stake of the Cake

16 Jul 2021 8 minute read 0 comments Thumbs Up Finance 🇨🇦

Digging Into DeFi #2 Welcome back to my series on decentralized finance (aka DeFi) for beginners. In the last post we looked at Bitcoin and I explained how you can get started with the original blockchain and it's increasingly popular currency of the...

What Is Proof Of Stake Consensus & How Does It Works(Updated)?

7 Jul 2021 7 minute read 2 comments CryptoWise

  I Feel: “When technology encourages a mechanism where users also become an inclusive part of its day to day functioning and has a very stronger stay, the world is bound to become a beautiful place to live and grow exponentially ” One such powerful...