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. <ul><li>Validators have to deposit coins as a security deposit. The size of the stake matters in the probability of a validator to be chosen.</li><li>The validators validates the transactions and cashes in the fees. If fraudulent transactions are added the validators losses the stake. </li></ul>It uses less energy, more people can participate but brings additional risks (attacks, etc). It's the future of ether and implemented in Cardano.

Proof of Stake

Cryptocurrencies use a ton of electricity because of mining. In recent years people started working on a different technique called Proof-of-Stake. Not only does it use less energy, it can also be more secure. (This video is a re-upload to fix a mistake I made in the previous one. Sorry about that!) 💰 Get $10 of free Bitcoin: Use my Coinbase affiliate link, and we'll both get $10 of free Bitcoin when you deposit $100: https://coinbase.com/join/decuyp_9 📚 Sources for this video: https://www.savjee.be/videos/simply-explained/proof-of-stake/ 🌍 Social Twitter: https://twitter.com/Savjee Facebook: https://facebook.com/Savjee Blog: https://savjee.be 💌 Newsletter: http://newsletter.savjee.be (no more than once a month) ❤️ Become a Simply Explained member: https://www.youtube.com/channel/UCnxrdFPXJMeHru_b4Q_vTPQ/join

crypto

Cryptocurrency

moneyandinvestments

Money & Investments

Cryptocurrencies use a ton of electricity because of mining. In recent years people started working on a different technique called Proof-of-Stake. Not only does it use less energy, it can also be more secure.

(This video is a re-upload to fix a mistake I made in the previous one. Sorry about that!)

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https://www.savjee.be/videos/simply-explained/proof-of-stake/

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#proofofstake #blockchain #mining #simplyexplained #crypto

Taking complicated topics and explaining them in plain English. 

My name is Xavier. I’m very passionate about all kinds of technologies and I love taking complex topics and explaining them in a simple and straightforward way. It’s this passion that got me into making YouTube videos.

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

Proof of Stake

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