[ccpw id="5"]

HomeINFOCryptoCurrency PoS ( Proof of Stake)

CryptoCurrency PoS ( Proof of Stake)

-

Proof of Stake (PoS)

In proof of stake there is no mining. Instead one node will be chosen and simply process the transactions without needing to solve any complex math puzzle.  The other nodes will verify the block. In order to penalize any attempts at cheating the nodes must lock some of their currency in a virtual safe and this stake will be forfeited if any funny business is detected(This system is called Staking and can be thought of as similar to mining for PoW but without the large electricity bills). The more currency you stake the more likely it is you will be chosen to create the next block, therefore the more you have to lose if you try and cheat.

Pros:

  • Faster confirmation times
  • More transactions per second (Tx/s)

Cons:

  • There are still questions about the security of PoS and how Game Theory applies to the nodes

Cryptos that use PoS

  • Peercoin
  • NXT
  • Ethereum will move to PoS soon

TL;DR PoS takes your currency if you try and cheat the system

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

How to mine bitcoin?

It sounds funny when we refer to "mining bitcoins". Will we go to a mine with a pick and shovel and start to extract gold coins...

Binance Coin-bnb

Lets learn about the history, development, usefulness and some curious facts about Binance Coin backed by the Binance company. Crypto exchanges are the most important part of the digital...

Coinbase Pro lists Chiliz, Keep Network, and Shiba Inu

Chiliz (CHZ), Keep Network (KEEP) and Shiba Inu (SHIB) will be listed in the Coinbase Pro and commercial operations will start from next Thursday, as long as...

Is Bitcoin a Bubble? For the Most of Fund Managers, Yes

According to a survey by Bank of America, 81% of fund managers think that; bitcoin is still a bubble even after the 35% price drop...

Follow us

0FansLike
3,041FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img