Foundations of Blockchain

Proof of Stake (PoS)

The PoS algorithm eradicates most of the issues of PoW by not depending on computational resources to achieve consensus. PoS uses validators, which are in contrast to the miners in PoW in that they don't perform any work to contribute to the decentralization. The contribution of the PoS validators depends on their share of the cryptocurrency coins from the total in circulation in the system. A validator with three coins is three times more likely to contribute to the validation than a validator owning a single coin. There are other factors that randomize the process to avoid one validator with a major stake monopolizing the validation process. Peercoin was the first to adopt PoS, followed by Nxt and BlackCoin. Ethereum ...