Proof-of-Stake Explained

What is Proof-of-stake?

With proof of stake, nodes can verify transactions and create blocks by putting their encrypted coins into the share wallet. These cryptocurrencies must be kept in the wallet and cannot be traded. With the normal version of the proof of stake, people with few cryptocurrencies will not be able to stake. The more cryptocurrencies you have, the greater the chance that the network will select you as a node, for example if you have 500 coins you will have x10 greater chances of being picked as a node instead of someone who has got 50 coins. 

Proof-of-stake has been designed to function as an alternative to proof-of-work and to counter and solve the issues it had. One of the main advantages it brings is that PoS does not require an enormous amount of energy to keep computers running. Next to this fact it also has a better resistance against hackers. 

One of PoS’ disadvantages is that it contradicts where cryptocurrency stands for, because ultimately, the rich get richer & the poor get poorer (Matthew-effect). This is because those who are wealthier will be prioritized to participate as a node. 

How to create NFTs?

Share

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram
Binance

How to create a Binance account

This guide will cover how to get started on Binance, 2-FA protection and more handy things to know before getting started trading. What is binance? Binance

How to create a Coinbase account

Cryptocurrency has become a hot topic over the last period of time. With the increasing amount of demand we are here to help you get started setting

Non-Fungible Tokens (NFTs)

What are NFTs? NFTs or non fungible tokens are cryptocurrencies or digital assets that represent a wide range of unique tangible and intangible asset. Some examples