October 2018
Intermediate to advanced
530 pages
14h 25m
English
Content preview from Blockchain across Oracle
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Proof-of-stake
The third method that a blockchain might use for reaching consensus is the PoS algorithm or scheme. It is extremely similar to the PoW scheme discussed previously. The main difference between these algorithms is that with PoS, participation is restricted to the entities (individuals or organizations) that have a legitimate stake in the blockchain. An entity needs to have an asset or a smart contract (that is, a programmable asset that can execute code) saved in the blockchain. The blockchain can still be public, but the verification of new transactions and blocks is only done by these entities. The PoS algorithm replaces the calculation of the hash with a digital signature that proves the ownership of the stake. Instead of ...
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