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.
2 Dec 2020 1 minute read 2 comments yanis
Proof of Stake is often considered as the successor of Proof of Work (and even more with ethereum 2.0), because of it's more scalable and energy efficient. But there's also problems... Nothing-to-stake security problem A part of PoW security is tha...
2 Dec 2020 1 minute read 1 comment CPix
With the recent launch of ETH2.0 Phase 0 "Beacon Chain" I figured I'd put together a collection of resources for anyone to learn more about the Ethereum ecosystem from Eth1.x to ETH2.0 Phases. Reports Messari ETH2 Report: https://messari.io/pdf/messa...
2 Dec 2020 1 minute read 3 comments MakeItReal
As anticipated in recent days, yesterday December 1st, the first fundamental step of the transition from the Proof Of Work (POW) consensus mechanism to the Proof Of Stake (POS) took place successfully thanks to the successful Beacon Chain genesis. Th...
2 Dec 2020 1 minute read 0 comments Behiver
LEO Finance growth is sustained by numbers and the economics is supported by ongoing projects development. December will be a hot month for this community that expects a new product in the form of a microblogging module which could be a game changer...
2 Dec 2020 1 minute read 3 comments Abhimanyu Krishnan
Ethereum’s beacon chain went live as scheduled on Dec. 1, marking the first step for the network in its bid to move to the proof-of-stake based Ethereum 2.0. The beacon chain will run parallel to the current Ethereum 1.0 chain, and sets the foundati...
30 Nov 2020 2 minute read 0 comments Juan Molina
Image Source It was 6 years ago, with the collapse of oil prices in the international market, when there was a cut in the flow of income to the nation and in this way the internal shortage increased, since the import policy in all areas it had vastly...
29 Nov 2020 1 minute read 1 comment Behiver
Ethereum 2.0 crossed the staking threshold with more than 50% and is ready to go live on 1st of December 2020. The Mainnet launch event is transmitted live on YouTube so you better bookmark it and be part of a historical broadcast. Current reward...
29 Nov 2020 1 minute read 0 comments Behiver
LEO Finance community is burning with growth and we see new features going out into the platform day after day. Uniswap ensures for the wrapped LEO the right marketplace into the world and a convenient way to transact LEO for Ethereum and from there...
26 Nov 2020 1 minute read 0 comments Gamma
Ethereum 2.0 The first version of Ethereum 2.0 should be launched on December 1, 2020, on the sole condition that 16384 validators have joined the network 7 days before this date. Each validator will have to invest 32 ETH, which currently represent...
25 Nov 2020 1 minute read 1 comment TheDesertLynx
Decred developer Luke Powell comes on the podcast to talk about Decred's new decentralized treasury model to be deployed in its new release. We cover proof-of-work/proof-of-stake consensus hybrids and how they add an extra layer of security to the n...
