Proof of Stake: Difference between revisions
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From the Wikipedia: | '''1. From the Wikipedia:''' | ||
"Proof-of-stake is a method by which a cryptocurrency blockchain network aims to achieve distributed consensus. While the proof-of-work method asks users to repeatedly run hashing algorithms to validate electronic transactions, proof-of-stake asks users to prove ownership of a certain amount of currency (their "stake" in the currency). Peercoin was the first cryptocurrency to launch using Proof-of-Stake. Other prominent implementations are found in BitShares, Nxt, BlackCoin, NuShares/NuBits and Qora." | "Proof-of-stake is a method by which a cryptocurrency blockchain network aims to achieve distributed consensus. While the proof-of-work method asks users to repeatedly run hashing algorithms to validate electronic transactions, proof-of-stake asks users to prove ownership of a certain amount of currency (their "stake" in the currency). Peercoin was the first cryptocurrency to launch using Proof-of-Stake. Other prominent implementations are found in BitShares, Nxt, BlackCoin, NuShares/NuBits and Qora." | ||
(https://en.wikipedia.org/wiki/Proof-of-stake) | (https://en.wikipedia.org/wiki/Proof-of-stake) | ||
2. From the Bitcoin wiki: | |||
"Proof of Stake is a proposed alternative to Proof of Work. Like proof of work, proof of stake attempts to provide consensus and doublespend prevention (see "main" bitcointalk thread, and a Bounty Thread). Because creating forks is costless when you aren't burning an external resource Proof of Stake alone is considered to an unworkable consensus mechanism. | |||
It was probably first proposed here by Quantum Mechanic. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks". | |||
Some argue that methods based on Proof of Work alone might lead to a low network security in a cryptocurrency with block incentives that decline over time (like bitcoin) due to Tragedy of the Commons, and Proof of Stake is one way of changing the miner's incentives in favor of higher network security." | |||
(https://en.bitcoin.it/wiki/Proof_of_Stake) | |||
[[Category:Cryptoledger Applications]] | [[Category:Cryptoledger Applications]] | ||
Revision as of 00:51, 8 December 2015
Description
1. From the Wikipedia:
"Proof-of-stake is a method by which a cryptocurrency blockchain network aims to achieve distributed consensus. While the proof-of-work method asks users to repeatedly run hashing algorithms to validate electronic transactions, proof-of-stake asks users to prove ownership of a certain amount of currency (their "stake" in the currency). Peercoin was the first cryptocurrency to launch using Proof-of-Stake. Other prominent implementations are found in BitShares, Nxt, BlackCoin, NuShares/NuBits and Qora." (https://en.wikipedia.org/wiki/Proof-of-stake)
2. From the Bitcoin wiki:
"Proof of Stake is a proposed alternative to Proof of Work. Like proof of work, proof of stake attempts to provide consensus and doublespend prevention (see "main" bitcointalk thread, and a Bounty Thread). Because creating forks is costless when you aren't burning an external resource Proof of Stake alone is considered to an unworkable consensus mechanism.
It was probably first proposed here by Quantum Mechanic. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".
Some argue that methods based on Proof of Work alone might lead to a low network security in a cryptocurrency with block incentives that decline over time (like bitcoin) due to Tragedy of the Commons, and Proof of Stake is one way of changing the miner's incentives in favor of higher network security." (https://en.bitcoin.it/wiki/Proof_of_Stake)