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.


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...

Stocks, Stakes and Staking in Crypto

15 May 2021 2 minute read 0 comments ac05

What is stock? Stock represents ownership in a company. When a person is buying stocks in a company, it means he is buying a particular percentage of ownership in that company. Purchasing the stocks in a company gives investors a claim to a certain a...

BASE REWARD TOKEN: THE FUTURE OF DECENTRALIZED FINANCE

14 May 2021 2 minute read 1 comment adriaparcerisas

Introduction Decentralized Finance (DeFi) project are becoming more and more trending topic. Lots of cryptocurrency projects are interested in create this type of finance in order to offer its advantages to their users. Nevertheless, in DeFi compani...

How to pick a Polygon Validator

9 May 2021 4 minute read 5 comments AlgoRhythm

Hi All! I've seen many question on the Polygon discord about how to pick a validator and what to look for. I'm here to let you know all the numbers you can look at and what to consider when choosing a validator to delegate to. Above we have the main...

Is Coin Staking and Farming entirely Safe?

6 May 2021 1 minute read 6 comments Defiant Pathfinder

Token staking and farming are trending these days. With crypto currencies like Bitcoin, Proof of Work is used and miners are rewarded for each block mined but on Tokens Proof of stake is used and investors are rewarded for staking their tokens to pro...

Ethereum 2.0 Explained

5 May 2021 5 minute read 7 comments RelyOnCrypto

Ethereum 2.0, also known as ETH2, is a set of integrated upgrades to the Ethereum network aimed at making it more scalable, secure, and sustainable. Many teams in the Ethereum community are working on these upgrades. Each team is concentrating on a p...