Proof of Stake Consensus
Proof of Stake (PoS) consensus is a cryptocurrency validation mechanism that confirms the validity of transactions on a blockchain and facilitates the creation of new blocks to be added to the blockchain. With distributed blockchain technology, a need exists to ensure that new entries to the distributed ledger are legitimate. Proof of Stake is one of many different consensus mechanisms that have been created or used since the advent of cryptocurrency in 2009 to ensure the integrity of distributed ledgers.
The Proof of Stake consensus mechanism was created to solve the problems of inefficiency that exist with Proof of Work consensus, the mechanism that was used by Bitcoin, the original cryptocurrency.
Crypto network consensus mechanisms such as Proof of Stake, Proof of Work, and have the role of filtering out spammers and other illegitimate participants, who could threaten the integrity of a crypto network. Both of these consensus methods are designed to be used with cryptocurrencies which are designed to be mined,
Cryptocurrencies Using Proof of Stake
These are some of the most popular cryptocurrencies that use Proof of Stake consensus.
The new version of Ethereum will be using Proof of Stake (moving from Proof of Work) as of the 2nd quarter of 2022.
The largest (by market capitalization) crypto coin to use the Proof of Stake consensus mechanism.
An open-source blockchain that employs smart contract functionality.
Compared to Proof of Work, Proof of Stake requires much less computational power. Whereas Proof of Work requires validator nodes on the network to show that they have performed computations, solving mathematical problems, before they are allowed to participate in
efficient consensus method than Proof of Work, which is the