How does the proof of stake protocol work in the context of digital currencies?

1 answers

• Saran MApr 27, 2021 · 4 years ago
  Proof of stake (PoS) is a consensus mechanism used in digital currencies to secure the network and validate transactions. Unlike proof of work (PoW), which relies on miners solving complex mathematical puzzles, PoS selects validators based on the amount of cryptocurrency they hold. Validators are chosen to create new blocks and validate transactions based on their stake in the network. This means that the more cryptocurrency a validator holds, the more likely they are to be chosen to validate transactions. PoS aims to reduce energy consumption and increase scalability compared to PoW. It also introduces the concept of slashing, where validators can lose a portion of their stake if they behave maliciously or fail to validate transactions correctly. Overall, PoS provides a more energy-efficient and scalable alternative to PoW for securing digital currencies.
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