How does proof of stake (PoS) consensus work in the cryptocurrency industry?

1 answers

• sagar 1111Jan 09, 2024 · 2 years ago
  Proof of stake (PoS) consensus is a mechanism used by cryptocurrencies to achieve consensus and validate transactions. Unlike proof of work (PoW), where miners compete to solve complex mathematical puzzles, PoS relies on validators who hold and 'stake' their cryptocurrency. Validators are chosen to create new blocks and validate transactions based on the amount of cryptocurrency they hold and are willing to stake. The more cryptocurrency a validator holds, the higher their chances of being selected. This consensus mechanism offers several advantages, including reduced energy consumption and increased scalability compared to PoW. Validators are incentivized to act honestly, as they risk losing their staked cryptocurrency if they validate fraudulent transactions. PoS is an important concept in the cryptocurrency industry and is used by various cryptocurrencies to achieve consensus.
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