Proof-of-Stake (vs proof-of-work) - Deepstash
Proof-of-Stake (vs proof-of-work)
Proof-of-Stake (vs proof-of-work)
Proof-of-Stake (vs proof-of-work)

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Proof-of-Stake (vs proof-of-work)

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Proof of Stake

An alternative to proof-of-work (the method of reaching consensus used by bitcoin). Instead of having miners using powerful hardware to mine, we have validators.

  • Validators have to deposit coins as a security deposit. The size of the stake matters in the probability of a validator to be chosen.
  • The validators validates the transactions and cashes in the fees. If fraudulent transactions are added the validators losses the stake.

It uses less energy, more people can participate but brings additional risks (attacks, etc). It's the future of ether and implemented in Cardano.

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vladimir

Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.