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What is Proof of Stake (PoS)?

September 8, 2020

The relatively recent appearance of cryptocurrencies in the world of electronic finance requires a high level of analysis and evaluation of the technologies used to carry out the immense volume of transactions in cryptocurrencies. that are run over the network.

Because of this, it is logical to think that the first ideas considered at the beginning of this work require a thorough re-evaluation of these technologies in order to adapt them to the demands of current events that will grow in the not too distant future.

All of this dynamism in the cryptocurrency market has led developers to consider new ways to do the job more optimally, which has led to the emergence of new proposals and new avenues in the broader environment of cryptocurrencies.

What is Proof of Stake (PoS)?What is Proof of Stake (PoS)?

It is clear that the PoW. As originally designed, they are not very efficient and not very environmentally friendly due to their lack of scalability and high energy consumption.. For this reason, the inclusion of faster alternatives to cover the large volume of transactions, the reduction in commissions and the reduction in power consumption are neural points that must be addressed to the EU as soon as possible.

All of this for the benefit of an entire community that is asking for solutions that will help to clean up these aspects while at the same time maintaining aspects that are as important as decentralization, data protection and security for those who use this market of blockchains for their negotiations.

There are many people who have expressed an interest in developing protocols like PoS or other protocols that might emerge as a derivative thereof, such as: Delegated Proof of Stake (DPoS), a modified form of the Proof of Stake that is being investigated as an alternative protocol to participation and work tests.

Related: What Is the Proof of Work (PoW)?

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