Proof of Stake (PoS)

Consensus mechanism where validators are chosen based on the number of tokens they hold and “bet”.

What is it? - Dummies

It's like voting harder the more money you have on the network to decide which block is valid.

What is it? - PRO

PoS is a blockchain consensus protocol that selects validators based on the number of tokens “staked” as collateral, reducing energy consumption compared to Proof of Work.

Key points

  • It reduces energy consumption.
  • It encourages economic participation and security.
  • Risk of concentration of power.
  • Sales and disadvantages

  • Advantages:
    • More efficient and environmentally friendly.
    • Improved scalability.
  • Disadvantages:
    • Risk of “rich get richer”.
    • Attacks such as “Nothing at Stake”.
  • Related Concepts

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