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.
30
231 reads
CURATED FROM
IDEAS CURATED BY
Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.
The idea is part of this collection:
Learn more about crypto with this collection
The history of fashion
The impact of fashion on society
The future of the fashion industry
Related collections
Similar ideas to Proof of Stake
Proof of stake
Similar to Proof-of-work, Proof-of-Stake is a consensus mechanism which underpins security of the blockchain by preventing doubles...
How Is the Elrond Network Secured?
- Elrond uses what it calls a secure proof-of-stake consensus algorithm in which nodes must stake their EGLD tokens to participate in the validation process, and each validator is assigned a rating score based on past activity.
- Validators
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates