Introduction

Proof-of-stake reduces the amount of calculation work required to verify blocks and transactions. Under proof-of-work, heavy calculation requirements ensured that the blockchain remained safe. Proof-of-stake changes the way in which blocks are verified by using the machines of munten owners, so that less calculation is needed. The owners offer their coins as collateral strike - for the chance to validate blocks and earn rewards. Validators are randomly chosen to confirm transactions and to validate block information. This system randomly who can collect the reimbursements, in contrast to the competitive remuneration system such as with proof-of-work.

To become a validator, a munting owner must "strike" a specific amount of coins. For example, Ethereum requires that 32 ETH is staked before a user can operate a node. Blocks are validated by multiple validators and when a specific number of validators confirms that the block is correct, it is finalized and closed. Various proof-of-stake mechanisms can use various methods to reach consensus. For example, when Ethereum introduces Sharding, a validator will verify the transactions and add it to a Shardblok, for which no more than 128 validators are needed to form a voting "committee". Once Shards have been validated and a block has been created, two thirds of the validators must agree that the transaction is valid, after which the block is closed.

Proof-of-work (POW) vs. Proof-of-Stake (POS)

Both consensus mechanisms help block chains to synchronize data, to validate information and process transactions. Each mechanism has proven itself in maintaining a blockchain, although each has its advantages and disadvantages. However, the two algorithms approach the problem very differently. Under POS, Blokmakers are called 'Validators'. A validator checks transactions, verifies activities, votes on outcomes and maintains records. Under POW, Blokmakers are called 'Miners'. Miners work to resolve the hash, a cryptographic number, to verify transactions. As a reward for solving the hash, they receive a currency. To "buy" in the position of Blokmaker, you must have enough coins or tokens to become a validator on a POS blockchain. For POW, Miners must invest in processing equipment and make considerable energy costs to provide the machines that try to resolve the calculations with electricity.

The equipment and energy costs under POW mechanisms are expensive, which limits access to mining and strengthens the safety of the blockchain. POS block chains reduce the amount of processing power required to validate block information and transactions. The mechanism also reduces network congestion and removes the rewards -based stimulus that POW Blockchains have.

Goals proof-of-stake (POS)

Proof-of-stake is designed to reduce network congestion and to tackle environmentalism problems that exist around the proof-of-work (POW) protocol. Proof-of-Work is a competitive approach to verifying transactions, which naturally encourages people to look for ways to achieve an advantage, especially because monetary value is involved. Bitcoin Miners earn Bitcoin by verifying transactions and blocks. However, they pay their operational costs such as electricity and rent with fiat money. What really happens is that miners exchange energy for cryptocurrency, which ensures that Pow Mining uses as much energy as some small countries. The POS mechanism is looking for these problems to solve by effective strike for computing power, whereby the network makes the mine option of an individual random. This means that there should be a drastic reduction in energy consumption, since miners can no longer rely on huge farms of specific hardware to gain an advantage. For example, the transition from Ethereum from POW to POS has reduced the energy consumption of the blockchain by 99.84%.