What is Proof of Stake? – Cryptocurrency News

Proof of Stake or simply known as PoS, was the primary type of blockchain consensus mechanism and still considered to be the famous choice when it comes to reaching the distributed consensus. (The capability of trusting a person you do not know without considering using a third –party).

Proof of Stake is being utilized by Ethereum, Bitcoin, and various other types of cryptocurrencies. In spite of its power, similar to the various types of cryptocurrencies, Power of Work also comes up with its drawbacks, such as the threat of centralization-by-mining-pool, higher energy costs, and higher computation requirements.

When you already learned the Proof of Stake as well as its disadvantages, the need for having a system, Proof of Stake of also known as PoS, in particular, will become clearer.

But first, let us define what is stake.

According to the dictionary, the term “stake” refers to the (1) sum of money or something else of value gambled on the outcome of a risky game or venture and…