2020: The Year of Proof of Stake

What is Proof of Stake and what makes it so special?

  • To validate transactions and create new blocks, users must first show ownership of a certain number of cryptocurrency units. This way, rather than utilizing high computational power to answer puzzles, a PoS miner or “forger” can only mine transactions proportional to their ownership.
  • Since forgers put their own money at stake to validate a transaction, they are incentivized to avoid fraud. They would lose their holdings if they validate a fraudulent transaction.

In Conclusion

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Dr Vin Menon

Dr Vin Menon

A blockchain enthusiast and entrepreneur’s musings on the next big revolution since the Internet.