Proof of Stake [PoS]
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Categories: Blockchain
PoS is a consensus algorithm that asks users to prove ownership of a certain amount of currency that is their stake in the currency. PoS gives the miners who hold coins (e.g., bitcoin) the ability to mine or validate transactions. In other words, the power of mining is proportional to the amount of coins a miner owns. Thus, the PoS process rewards larger stakeholders in the network.
Proof of Stake (Wikipedia)
This article may be unbalanced towards certain viewpoints. (December 2021) |
Proof-of-stake (PoS) protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof-of-work schemes. The first functioning use of PoS for cryptocurrency was Peercoin in 2012.
