Quick Lessons about Cryptocurrencies and Bitcoin
Proof of Stake (PoS)
One of the two most popular consensus methods in blockchain technology is the Proof of Stake (PoS), also known as Proof of Participation (PoP). PoS, like Proof of Work (PoW), aims to establish consensus among all of the network's participants. In this article, we will explore the basics of PoS and its key differences from PoW.
What is Proof of Stake (PoS)?
Validators are nodes that participate in PoS mining. The selection of which node must validate a block is chosen at random, but those who meet certain requirements are given a higher probability. These criteria may include the amount of currency set aside and the length of involvement in the network. Once the selection process is complete, the chosen nodes will have the ability to validate transactions or build new blocks.
How is Proof of Stake different from Proof of Work?
Proof of Stake differs significantly from the well-known Proof of Work methodology. In PoW, each node engages in rigorous computational work to resolve cryptographic conundrums. This means that PoW, unlike PoS, requires a lot of energy and sophisticated machinery to operate.
On the other hand, PoS is more straightforward and less energy-intensive. This is why many blockchain projects are interested in adopting this new protocol. In 2012, PeerCoin became the first coin to employ this system.
Why is Proof of Stake important?
The adoption of PoW indicates an asymmetrical tactic in any scenario. This means that while it is highly difficult to do the work required by the network (thereby increasing network security), it is very easy to validate that work (allowing the rest of the network to serve as an arbiter of the mining work). PoS does not require this, making it an attractive alternative for blockchain projects.
Proof of Stake is a consensus method that differs from the well-known Proof of Work methodology in that it is more straightforward and less energy-intensive. Validators are nodes that participate in PoS mining, and the chosen nodes will have the ability to validate transactions or build new blocks. With its ease of use and energy efficiency, PoS is becoming increasingly popular in the blockchain community.