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.


How To POS BeanCash

20 Jun 2019 1 minute read bitcoinflood $0.38 tipped

When starting out with POS you can end up making a number of mistakes. That is why when first getting into POS (Proof of stake) coins you should start out with a low cost but profitable coin. One such coin I like to use is called BeanCash which curre...

4Stake Review

14 Jun 2019 1 minute read LiteLiger $0.38 tipped

4Stake Review Today i'm going to talk about shared masternode / staking Pools service called 4Stake which originates from Brazil the platform is available in Englis, Spanish and Portuguese. It allows people to participate staking without having own...

Best coins for staking currently

7 Jun 2019 2 minute read fblauer $1.13 tipped

Introduction There have been a number of articles written about Proof of Stake consensus, and how to earn rewards by staking your coins, voting and delegating to validators. So I will refer to some of those guides below. A good meta site for listing...

Cobo Crypto wallet for investing and staking

29 May 2019 3 minute read fblauer $0.65 tipped

Intro I have been evaluating the Cobo.com wallet services for the past few of months. I have been testing the staking pool, and interest earning capabilities, as an alternative to Celsius (which I really like – I will also be writing some articles ab...

The benefits of Veil’s PoW mining/PoS staking hybrid consensus for security and distribution

14 May 2019 2 minute read Strontium $0.03 tipped

As Veil users are already aware, the Veil network relies on a hybrid proof-of-work (PoW)/proof-of-stake (PoS) dual consensus setup to secure the network and distribute rewards. The PoW consensus depends on Veil’s X16RT algorithm adapted from Ravencoi...

Long-term hold the best investment : ESBC (Betting, Pos-MN)

14 Apr 2019 3 minute read raga1997 $0.03 tipped

ESBC is a masternode and proof of stake project which lets you scratch that gambling itch by establishing a fast, community-friendly and anonymous betting platform based on $ESBC. The main project goals are: enabling users to make anonymous bets on t...

Where does the money come from on the blockchain?

31 Mar 2019 4 minute read connecteconomy $2.54 tipped

Unlike our traditional currencies, like Dollars, Euros, Yen, etc, cryptocurrencies are NOT issued by an authority like a central bank of a country. In the decentralized world of blockchain technology, money is being issued based on a set of rules and...

Stakinglab - Great Masternode & Proof of Stake Pool

23 Mar 2019 1 minute read LiteLiger $0.03 tipped

Previously i have reviewed similar Staking pool services like Stakecube and Simple PoS Pool, today i want to share another one discovered called Stakinglab. There are always certain risks involved with staking pools in general, but in case of Stakin...

Guide: Staking Spectrecoin on a Raspberry Pi

19 Mar 2019 3 minute read SpectreCat $5.23 tipped

Staking Spectrecoin on your Raspberry Pi is really easy to set up. Just follow this guide and you can sit back and watch your Pi do the work for you!      — — — — — — — — Summary Flash the latest Raspi image from the official Spectrecoin Github onto...

Look at Proof-Of-Stake Pool Service - StakeCube

10 Mar 2019 1 minute read LiteLiger $0.05 tipped

Today i will be talking about StakeCube a proof of stake service, which allows you to deposit different type of PoS coins like Pivx, Reddcoin, Bitcoin Green, Navcoin, XPCoin, Beancash and many less known PoS coins. When you stake inside a pool you g...