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Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin

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Proof-of-Capacity (PoC)<\/h3>\n\n\n\n

Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n

Proof-of-Activity (PoA)<\/h3>\n\n\n\n

Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n

Proof-of-Authority (PoA)<\/h3>\n\n\n\n

In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n

Proof-of-Burn (PoB)<\/h3>\n\n\n\n

In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n

What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n

Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n

A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n

This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n

How Does Proof-of-Stake Work?<\/h2>\n\n\n\n

To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n

Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n

Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n

In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n

Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n

How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n

The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n

A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n

But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n

What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n

Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n

Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n

Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n

Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n

Pros<\/th>	Cons<\/th><\/tr><\/thead>
Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td>	PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr>
Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td>	Validators with large holdings can influence transactions<\/td><\/tr>
Energy-efficient<\/td>	Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Proof-of-Work (PoW)<\/h3>\n\n\n\n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Consensus mechanisms come in many different forms. Each mechanism will allow for a decentralized system to achieve agreement with adequate trust and security.<\/p>\n\n\n\n Proof-of-Work (PoW)<\/h3>\n\n\n\n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Types Of Consensus Mechanisms<\/h2>\n\n\n\n Consensus mechanisms come in many different forms. Each mechanism will allow for a decentralized system to achieve agreement with adequate trust and security.<\/p>\n\n\n\n Proof-of-Work (PoW)<\/h3>\n\n\n\n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n The consensus is reached when at least 51% of the nodes on the network agree on the next global state of the network.<\/p>\n\n\n\n Types Of Consensus Mechanisms<\/h2>\n\n\n\n Consensus mechanisms come in many different forms. Each mechanism will allow for a decentralized system to achieve agreement with adequate trust and security.<\/p>\n\n\n\n Proof-of-Work (PoW)<\/h3>\n\n\n\n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Such technologies like cryptocurrencies use this mechanism to assist in record-keeping on a distributed ledger<\/a> because it allows nodes to work together and stay secure. The consensus mechanism acts as the rule book, deciding how legitimate certain contributions are on the blockchain-based on the mechanism being used.<\/p>\n\n\n\n The consensus is reached when at least 51% of the nodes on the network agree on the next global state of the network.<\/p>\n\n\n\n Types Of Consensus Mechanisms<\/h2>\n\n\n\n Consensus mechanisms come in many different forms. Each mechanism will allow for a decentralized system to achieve agreement with adequate trust and security.<\/p>\n\n\n\n Proof-of-Work (PoW)<\/h3>\n\n\n\n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Consensus is when a general agreement is reached. In reference to blockchains, consensus mechanisms are fault-tolerant systems utilized to reach an agreement on a single state of data within the network among distributed nodes<\/a>. ((Shubhani Aggarwal and Neeraj Kumar - Advances In Computers (Vol 121), Chapter 11 - Cryptographic Consensus Mechanisms<\/a>)) <\/p>\n\n\n\n Such technologies like cryptocurrencies use this mechanism to assist in record-keeping on a distributed ledger<\/a> because it allows nodes to work together and stay secure. The consensus mechanism acts as the rule book, deciding how legitimate certain contributions are on the blockchain-based on the mechanism being used.<\/p>\n\n\n\n The consensus is reached when at least 51% of the nodes on the network agree on the next global state of the network.<\/p>\n\n\n\n Types Of Consensus Mechanisms<\/h2>\n\n\n\n Consensus mechanisms come in many different forms. Each mechanism will allow for a decentralized system to achieve agreement with adequate trust and security.<\/p>\n\n\n\n Proof-of-Work (PoW)<\/h3>\n\n\n\n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n What Is A Consensus Mechanism?<\/h2>\n\n\n\n Consensus is when a general agreement is reached. In reference to blockchains, consensus mechanisms are fault-tolerant systems utilized to reach an agreement on a single state of data within the network among distributed nodes<\/a>. ((Shubhani Aggarwal and Neeraj Kumar - Advances In Computers (Vol 121), Chapter 11 - Cryptographic Consensus Mechanisms<\/a>)) <\/p>\n\n\n\n Such technologies like cryptocurrencies use this mechanism to assist in record-keeping on a distributed ledger<\/a> because it allows nodes to work together and stay secure. The consensus mechanism acts as the rule book, deciding how legitimate certain contributions are on the blockchain-based on the mechanism being used.<\/p>\n\n\n\n The consensus is reached when at least 51% of the nodes on the network agree on the next global state of the network.<\/p>\n\n\n\n Types Of Consensus Mechanisms<\/h2>\n\n\n\n Consensus mechanisms come in many different forms. Each mechanism will allow for a decentralized system to achieve agreement with adequate trust and security.<\/p>\n\n\n\n Proof-of-Work (PoW)<\/h3>\n\n\n\n In Proof-of-Work consensus, transactions are validated through a process called cryptocurrency mining<\/a>. Cryptocurrency mining will reward miners for validating a block in the native token of the blockchain, adding to the circulation of tokens.<\/p>\n\n\n\n Proof-of-Stake (PoS)<\/h3>\n\n\n\n In Proof-of-Stake<\/a> consensus, tokens are allocated the responsibility of maintaining the public ledger. Therefore, owners of tokens will sometimes become validators and will be rewarded for simply holding their coins. Like PoW, the rewards are the native token of the blockchain and are how new tokens are entered into circulation.<\/p>\n\n\n\n Proof-of-Capacity (PoC)<\/h3>\n\n\n\n Proof-of-Capacity shares the memory space of the nodes on the network. The more memory a node offers, the more rights it has to maintain the public ledger's data.<\/p>\n\n\n\n Proof-of-Activity (PoA)<\/h3>\n\n\n\n Proof-of-Activity is a hybrid consensus of PoW and PoS. Mining begins with PoW, once the block is found it switches to the PoS consensus and a random participant is selected to validate the block.<\/p>\n\n\n\n Proof-of-Authority (PoA)<\/h3>\n\n\n\n In Proof-of-Stake consensus nodes stake monetary value whereas Proof-of-Authority consensus stakes the actual identities of the nodes in the system. Through identifying validators, PoA consensus becomes fundamentally centralized and is best suited for private blockchains such as a group of banks.<\/p>\n\n\n\n Proof-of-Burn (PoB)<\/h3>\n\n\n\n In Proof-of-Burn, transactors send small amounts of cryptocurrency to inaccessible wallet addresses, to \"burn\" them from the circulating supply. This slowly decreases the supply, making each token still in circulation more valuable as time goes on.<\/p>\n","post_title":"Consensus Mechanisms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"consensus-mechanisms","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/distributed-ledger-technology\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/proof-of-stake\/","post_modified":"2022-08-01 20:23:54","post_modified_gmt":"2022-08-01 10:23:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4119","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4041,"post_author":"1","post_date":"2022-03-22 10:29:50","post_date_gmt":"2022-03-21 23:29:50","post_content":"\n What Is Proof-of-Stake (PoS)?<\/h2>\n\n\n\n Proof-of-Stake (PoS) is a set of consensus mechanisms<\/a> built to process transactions on a blockchain. <\/p>\n\n\n\n A validator<\/a> is randomly selected to validate a transaction based on their stake in the network.<\/p>\n\n\n\n This is a direct combat against the flawed and energy-intensive cryptocurrency mining<\/a> process used by proof-of-work (PoW), considering Bitcoins PoW uses more energy than various countries.((University Of Cambridge - Bitcoin Electricity Consumption Index<\/a>)) PoS validators are responsible for the same thing PoW miners are; ordering transactions and creating new blocks so all nodes<\/a> can agree on the state of the network, this is done through a general consensus.((Ethereum - Proof Of Stake (PoS)<\/a>))<\/p>\n\n\n\n How Does Proof-of-Stake Work?<\/h2>\n\n\n\n To become a validator within a PoS network, token holders must deposit a certain amount of coins into the network through a 'stake' of the blockchain's base currency. As a result, this will classify you as an active validator. The size of your stake within the network determines the likelihood of being chosen to confirm the next block, the more you have staked the higher chance you will validate the block. For example, to become an Ethereum validator you must stake 32 ETH. ((Ethereum - How To Stake Your ETH<\/a>)) <\/p>\n\n\n\n Whichever user is chosen from the active validator set will check the block to make sure the transactions are valid. If the validator node confirms the transactions as true then the block is added to the chain. It is worth noting that blocks are validated by more than one validator and only once a certain amount of validators confirm the block as true is it added to the chain.<\/p>\n\n\n\n Why Is Proof-of-Stake (PoS) Less Energy?<\/h3>\n\n\n\n In PoS not everyone is trying to mine a new block like in PoW. As PoS only selects one random validator it uses significantly less energy in the process of finding someone to confirm a block.<\/p>\n\n\n\n Staking is substituted for computational power used in PoWs mining process, eliminating the huge amounts of energy mining consumes and the incentive to keep expanding mining farms to gain an advantage over other miners.<\/p>\n\n\n\n How Is Proof-of-Stake Secure?<\/h2>\n\n\n\n The stake put up by a user incentives good behavior as a user can lose their stake for misbehaving (confirming false transactions or going offline).((Ethereum - Proof Of Stake (PoS)<\/a>)) As long as the stake put up by the user is higher than the reward for being a validator, they can be trusted as they would be losing more than they make.<\/p>\n\n\n\n A 51% attack<\/a> is a concern usually bought up as a concern with the PoS consensus. Within a PoS consensus, a 51% attack would mean that a single entity or organization controls over 51% of all stakes, with this they would have control over the network to alter it and add in false transactions which would not be recognized as fake as they control a majority of the validators.<\/p>\n\n\n\n But if an entity were to revert a block through a 51% stake they would in turn lose their staked coins, as stated above. These security measures are encoded within the blockchains protocol<\/a>.<\/p>\n\n\n\n What Is Delegated Proof-of-Stake?<\/h2>\n\n\n\n Delegated PoS (DPoS) still requires participants of a PoS system to stake their coins, but rather than being responsible for the validation of coins the responsibility is outsourced to a delegate.<\/p>\n\n\n\n Delegates then work together to form a consensus. There are usually 20-100 delegates, although every chain is different. <\/p>\n\n\n\n Delegates are chosen based on their reputation and perceived trustworthiness within the blockchain. The community has the right to vote out delegates at any time if their trustworthiness and reputation are questioned.<\/p>\n\n\n\n Pros And Cons Of Proof-of-Stake<\/h2>\n\n\n\n Pros<\/th> Cons<\/th><\/tr><\/thead> Staking doesn't require hardware to run nodes, if you dont have enough crypto to stake you can join staking pools.<\/td> PoS is in an infancy stage. Its security isn't tested like PoWs is.<\/td><\/tr> Staking is more decentralized as more nodes doesn't mean increased % returns, as PoW does. ((Ethereum - Proof Of Stake (PoS)<\/a>))<\/td> Validators with large holdings can influence transactions<\/td><\/tr> Energy-efficient<\/td> Some stakes require locking crypto in for a set amount of time<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Which Cryptocurrencies Use Proof-of-Stake?<\/h2>\n\n\n\n The first functioning application of PoS was Peercoin<\/a>, introduced in 2012.<\/p>\n\n\n\n As of 2022, the top 10 PoS cryptocurrency projects by market cap are;<\/p>\n\n\n\n Ethereum ($ETH<\/a>) - $365.7B (Note Ethereum Is Transitioning To A PoS Network<\/a>)<\/li> Solana ($SOL<\/a>) - $33.6B<\/li> Cardano ($ADA<\/a>) - $31.8B<\/li> Avalanche ($AVAX<\/a>) - $20.8B<\/li> Polkadot ($DOT<\/a>) - $17.8B<\/li> Tron ($TRX<\/a>) - 6.1B<\/li> Algorand ($ALGO<\/a>) - $4.8B<\/li> Tezos ($XTZ<\/a>) - $2.8B<\/li> EOS ($EOS<\/a>) - $2.3B<\/li> Celo ($CELO<\/a>) - $1.39B<\/li><\/ol>\n","post_title":"Proof-of-Stake (PoS)","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"proof-of-stake","to_ping":"","pinged":"https:\/\/www.thedistributed.co\/what-is-a-51-attack-on-a-blockchain\/\nhttps:\/\/www.thedistributed.co\/cryptocurrency-mining\/\nhttps:\/\/www.thedistributed.co\/what-are-nodes\/\nhttps:\/\/www.thedistributed.co\/ethereums-proof-of-stake-merge-set-for-august\/\nhttps:\/\/www.thedistributed.co\/validator\/","post_modified":"2022-08-06 18:11:40","post_modified_gmt":"2022-08-06 08:11:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4041","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"}; Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n \n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n See Related: <\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n The announcement of the merge taking place in September comes after it was originally planned to merge in August<\/a>, although there were problems encountered pushing it back to the current date.<\/li><\/ul>\n\n\n\n See Related: <\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n The final merge on Ethereums Goerli testnet<\/a> also occurred yesterday, this was the third and final testnet to merge to PoS. After this there is the \"Bellatrix\", occurring on September 6th which prepares the mainnet for the merge before the final step, \"Paris\" this is when the hash rate is finally reached.<\/li><\/ul>\n\n\n\n The announcement of the merge taking place in September comes after it was originally planned to merge in August<\/a>, although there were problems encountered pushing it back to the current date.<\/li><\/ul>\n\n\n\n See Related: <\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Hash rate defines how hard it is to mine a block using proof-of-work (PoW) on Ethereum, once it passes this point the merge into proof-of-<\/a>stake <\/a>(PoS) will occur on the network. The hash rate isn't a fixed increase, so the date is the best prediction we have - it could be a few days more or less.<\/li><\/ul>\n\n\n\n The final merge on Ethereums Goerli testnet<\/a> also occurred yesterday, this was the third and final testnet to merge to PoS. After this there is the \"Bellatrix\", occurring on September 6th which prepares the mainnet for the merge before the final step, \"Paris\" this is when the hash rate is finally reached.<\/li><\/ul>\n\n\n\n The announcement of the merge taking place in September comes after it was originally planned to merge in August<\/a>, although there were problems encountered pushing it back to the current date.<\/li><\/ul>\n\n\n\n See Related: <\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n \nhttps:\/\/twitter.com\/VitalikButerin\/status\/1558072902972473344\n<\/div><\/figure>\n\n\n\n Hash rate defines how hard it is to mine a block using proof-of-work (PoW) on Ethereum, once it passes this point the merge into proof-of-<\/a>stake <\/a>(PoS) will occur on the network. The hash rate isn't a fixed increase, so the date is the best prediction we have - it could be a few days more or less.<\/li><\/ul>\n\n\n\n The final merge on Ethereums Goerli testnet<\/a> also occurred yesterday, this was the third and final testnet to merge to PoS. After this there is the \"Bellatrix\", occurring on September 6th which prepares the mainnet for the merge before the final step, \"Paris\" this is when the hash rate is finally reached.<\/li><\/ul>\n\n\n\n The announcement of the merge taking place in September comes after it was originally planned to merge in August<\/a>, although there were problems encountered pushing it back to the current date.<\/li><\/ul>\n\n\n\n See Related: <\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n The Ethereum developers had a Consensus Layer Call<\/a><\/a><\/span> yesterday in which the merge was discussed. The developers predict that it will occur in mid-September, later being confirmed by Ethereum co-founder, Vitalik Buterin, that it will occur once a hash rate<\/a> of 58750000000000000000000 is reached. <\/li><\/ul>\n\n\n\n \nhttps:\/\/twitter.com\/VitalikButerin\/status\/1558072902972473344\n<\/div><\/figure>\n\n\n\n Hash rate defines how hard it is to mine a block using proof-of-work (PoW) on Ethereum, once it passes this point the merge into proof-of-<\/a>stake <\/a>(PoS) will occur on the network. The hash rate isn't a fixed increase, so the date is the best prediction we have - it could be a few days more or less.<\/li><\/ul>\n\n\n\n The final merge on Ethereums Goerli testnet<\/a> also occurred yesterday, this was the third and final testnet to merge to PoS. After this there is the \"Bellatrix\", occurring on September 6th which prepares the mainnet for the merge before the final step, \"Paris\" this is when the hash rate is finally reached.<\/li><\/ul>\n\n\n\n The announcement of the merge taking place in September comes after it was originally planned to merge in August<\/a>, although there were problems encountered pushing it back to the current date.<\/li><\/ul>\n\n\n\n See Related: <\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n The Ethereum merge from a proof-of-work consensus<\/a> to proof-of-stake<\/a> is set to take place around the 15-16th of September this year. The merge will bring many benefits to the Ethereum blockchain including drastically low transaction fees and 99.9% in energy reduction.<\/p>\n\n\n\n The Ethereum developers had a Consensus Layer Call<\/a><\/a><\/span> yesterday in which the merge was discussed. The developers predict that it will occur in mid-September, later being confirmed by Ethereum co-founder, Vitalik Buterin, that it will occur once a hash rate<\/a> of 58750000000000000000000 is reached. <\/li><\/ul>\n\n\n\n \nhttps:\/\/twitter.com\/VitalikButerin\/status\/1558072902972473344\n<\/div><\/figure>\n\n\n\n Hash rate defines how hard it is to mine a block using proof-of-work (PoW) on Ethereum, once it passes this point the merge into proof-of-<\/a>stake <\/a>(PoS) will occur on the network. The hash rate isn't a fixed increase, so the date is the best prediction we have - it could be a few days more or less.<\/li><\/ul>\n\n\n\n The final merge on Ethereums Goerli testnet<\/a> also occurred yesterday, this was the third and final testnet to merge to PoS. After this there is the \"Bellatrix\", occurring on September 6th which prepares the mainnet for the merge before the final step, \"Paris\" this is when the hash rate is finally reached.<\/li><\/ul>\n\n\n\n The announcement of the merge taking place in September comes after it was originally planned to merge in August<\/a>, although there were problems encountered pushing it back to the current date.<\/li><\/ul>\n\n\n\n See Related: <\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n At the time of writing Ethereum is trading at US$1,886 - up almost 100% since June.<\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n See Related:<\/em><\/strong> Ethereum Proof-of-Stake Merge Set For Mid-September<\/a><\/p>\n\n\n \n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n There will also be no downtime when the merge comes, one block will use proof-of-work and when the TTD is reached, the next block will use proof-of-stake which already has numerous validators on the network.<\/li><\/ul>\n\n\n\n See Related:<\/em><\/strong> Ethereum Proof-of-Stake Merge Set For Mid-September<\/a><\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n It also stated that when staked ETH becomes available for withdrawal after the Shanghai upgrade, there will be validator exit rates. Users are also incentivized to keep funds stakes to reap the full benefits of the yield provided.<\/li><\/ul>\n\n\n\n There will also be no downtime when the merge comes, one block will use proof-of-work and when the TTD is reached, the next block will use proof-of-stake which already has numerous validators on the network.<\/li><\/ul>\n\n\n\n See Related:<\/em><\/strong> Ethereum Proof-of-Stake Merge Set For Mid-September<\/a><\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Transaction speeds were also discussed, in that they will not improve \"in a way that users will notice....historically, on proof-of-work, the target was to have a new block every ~13.3 seconds. On the Beacon Chain, slots occur precisely every 12 seconds, each of which is an opportunity for a validator to publish a block...On proof-of-stake<\/a> blocks will be produced about 10% more frequently than on proof-of-work. This is a fairly insignificant change and is unlikely to be noticed by users.\u201d<\/li><\/ul>\n\n\n\n It also stated that when staked ETH becomes available for withdrawal after the Shanghai upgrade, there will be validator exit rates. Users are also incentivized to keep funds stakes to reap the full benefits of the yield provided.<\/li><\/ul>\n\n\n\n There will also be no downtime when the merge comes, one block will use proof-of-work and when the TTD is reached, the next block will use proof-of-stake which already has numerous validators on the network.<\/li><\/ul>\n\n\n\n See Related:<\/em><\/strong> Ethereum Proof-of-Stake Merge Set For Mid-September<\/a><\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n The biggest point made was that the merge will not reduce gas fees<\/a>, the article states that \"the Merge is a change of consensus mechanism<\/a>, not an expansion of network capacity, and will not result in lower gas fees.\"<\/li><\/ul>\n\n\n\n Transaction speeds were also discussed, in that they will not improve \"in a way that users will notice....historically, on proof-of-work, the target was to have a new block every ~13.3 seconds. On the Beacon Chain, slots occur precisely every 12 seconds, each of which is an opportunity for a validator to publish a block...On proof-of-stake<\/a> blocks will be produced about 10% more frequently than on proof-of-work. This is a fairly insignificant change and is unlikely to be noticed by users.\u201d<\/li><\/ul>\n\n\n\n It also stated that when staked ETH becomes available for withdrawal after the Shanghai upgrade, there will be validator exit rates. Users are also incentivized to keep funds stakes to reap the full benefits of the yield provided.<\/li><\/ul>\n\n\n\n There will also be no downtime when the merge comes, one block will use proof-of-work and when the TTD is reached, the next block will use proof-of-stake which already has numerous validators on the network.<\/li><\/ul>\n\n\n\n See Related:<\/em><\/strong> Ethereum Proof-of-Stake Merge Set For Mid-September<\/a><\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n A recent publishing<\/a> from the Ethereum team debunks the common misconceptions about the upcoming merge to a Proof-of-Stake<\/a> consensus in the following month.<\/p>\n\n\n\n The biggest point made was that the merge will not reduce gas fees<\/a>, the article states that \"the Merge is a change of consensus mechanism<\/a>, not an expansion of network capacity, and will not result in lower gas fees.\"<\/li><\/ul>\n\n\n\n Transaction speeds were also discussed, in that they will not improve \"in a way that users will notice....historically, on proof-of-work, the target was to have a new block every ~13.3 seconds. On the Beacon Chain, slots occur precisely every 12 seconds, each of which is an opportunity for a validator to publish a block...On proof-of-stake<\/a> blocks will be produced about 10% more frequently than on proof-of-work. This is a fairly insignificant change and is unlikely to be noticed by users.\u201d<\/li><\/ul>\n\n\n\n It also stated that when staked ETH becomes available for withdrawal after the Shanghai upgrade, there will be validator exit rates. Users are also incentivized to keep funds stakes to reap the full benefits of the yield provided.<\/li><\/ul>\n\n\n\n There will also be no downtime when the merge comes, one block will use proof-of-work and when the TTD is reached, the next block will use proof-of-stake which already has numerous validators on the network.<\/li><\/ul>\n\n\n\n See Related:<\/em><\/strong> Ethereum Proof-of-Stake Merge Set For Mid-September<\/a><\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n See Related:<\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n \n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n It also stands that all of this staked ETH will not hit the market at once and crash Ethereum. There are exit rate limits on the chain to prevent this from happening and crashing the price. Currently Ethereum is trading at US$1,551.<\/li><\/ul>\n\n\n\n See Related:<\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n Leading up to the merge there has been misconceptions with the actual goal of it. Mainly, it will not lower gas fees as its \u201ca change of\u00a0consensus mechanism<\/a>, not an expansion of network capacity, and will not result in lower gas fees,\" stated<\/a> Ethereum in a recent publishing.<\/li><\/ul>\n\n\n\n It also stands that all of this staked ETH will not hit the market at once and crash Ethereum. There are exit rate limits on the chain to prevent this from happening and crashing the price. Currently Ethereum is trading at US$1,551.<\/li><\/ul>\n\n\n\n See Related:<\/em><\/strong> The Misconceptions With The Ethereum Merge<\/a><\/p>\n\n\n\n Most Read Altcoins Hopeful That ZCash And Dogecoin Move To PoS – Vitalik Buterin September 25, 2022 - Updated on April 30, 2023 Artificial Intelligence Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents December 19, 2024 Artificial Intelligence Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations August 15, 2024 Banking Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology November 24, 2024 Artificial Intelligence Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry November 24, 2024 Subscribe To Our Newsletter By subscribing, you agree with our privacy and terms. Type your email here > Follow The Distributed Twitter Instagram Youtube LinkedIn Facebook RSS ADVERTISEMENT \n