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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.
29 Oct 2020 1 minute read 4 comments Sapphire Crypto
A More Extensive Alternative To Stakecube Staking continues to be a viable way of making fairly safe passive income from my Crypto holdings. There are a lot of other options currently, thanks to DeFi and farming but the safer aspect of staking is sti...
27 Oct 2020 1 minute read 1 comment Ashish Gupta
NEM is a group of individuals who trust each other to deliver and wants to shape the future of blockchain by sustaining a strong and healthy ecosystem that will contribute to the development of blockchain technology for generations to come, which wi...
23 Oct 2020 2 minute read 2 comments Allen Walters
Exaion EDF Group is a subsidiary of EDF, the second largest electric utility company in Europe with a yearly revenue of $ 70 billion, over 152,000 employees and partly owned by the French state. Exaion EDF Group specializes in high performance comput...
19 Oct 2020 5 minute read 9 comments Dzoelx
Newest blockchain technology and cryptocurrency projects have developed a number of consensus algorithms different from the earliest Proof of Work algorithm and the Proof of stake algorithm too. Proof of concept, Proof of Knowledge; Proof of solution...
16 Oct 2020 2 minute read 8 comments Sapphire Crypto
A Good Place To Seek Out Potential Investment Opportunities If you have been in the Crypto space a while, you will probably understand the dynamic of getting into new movements and growth sectors early on before the explosion hits. This is a dynamic...
16 Oct 2020 3 minute read 3 comments Allen Walters
The Sword Group is a French, international, software, consulting and services company, created in 2000 and present in 19 countries. Three months ago I wrote about Sword Group and their new standard for timestamping and electronic signatures that they...
12 Oct 2020 12 minute read 10 comments RenanBR
Original source: Criptomedia (criptomedia.com.br) - portuguese version Before we deepen our discussion around the Algorand Protocol, we need to understand how Bitcoin came about, which brought this use of cryptography to the field of finance and...
11 Oct 2020 5 minute read 0 comments CryptoN0ob
Kira is the first decentralized network that enables market access to any digital asset in the interchain ecosystem. Presentation ! 01. What is Kira Network ? KIRA is a decentralized network designed to secure and power DeFi applications. This netwo...
8 Oct 2020 4 minute read 2 comments Chriss
The following article was created to provide more details about growth plan of MyCointainer company as a whole - specifically in the context of MyCointainer POWER Percent. What do you get when buying MyCointainer POWER Percent? MyCointainer POWER P...
7 Oct 2020 2 minute read 7 comments Allen Walters
Last week, the first DEX (Decentralized Exchange) that is build on Tezos, was launched. More info about DEXter here. Liquidity poolsAs on any DEX, there are liquidity pools needed to provide the necessary liquidity. If people want to sell or buy, th...
