Consensus - Proof of Stake
The Proof of Stake Consensus
By Crypto Nation – 20 June 2020
The Proof of Stake consensus (PoS), is one of the most widespread blockchain consensus mechanisms. This algorithm assigns the determination of consensus by adding blocks to the blockchain at nodes called Masternodes. These Masternodes hold a certain amount of the tokens of the relevant blockchain. The amount is systematically clearly indicated by the issuer of the cryptocurrency.
Very fashionable at the moment, a lot of new cryptocurrencies are created in PoS. Some cryptocurrencies from other consensuses even seek to migrate to Proof of Stake, such as Ethereum (ETH) for example.
The main advantage of Proof of Stake is to avoid the immense energy expenses of Proof of Work. However, it is generally considered that a blockchain operating in PoS does not have the same robustness and the same level of immutability of Proof of Work, like Bitcoin (BTC).