How does the proof-of-stake (PoS) consensus algorithm work in the context of cryptocurrencies?

1 answers

• Nov 29, 2021 · 3 years ago
  In the context of cryptocurrencies, the proof-of-stake (PoS) consensus algorithm operates by selecting validators to create new blocks and validate transactions based on their ownership of the cryptocurrency. Validators are chosen in a deterministic manner, considering factors such as the amount of cryptocurrency they hold and their willingness to 'stake' it. This means that validators who hold a larger amount of cryptocurrency have a higher chance of being selected. Once chosen, validators are responsible for verifying transactions and adding them to the blockchain. In contrast to the proof-of-work (PoW) algorithm, PoS is more energy-efficient and secure against 51% attacks, as it doesn't rely on computational power but rather on the ownership of the cryptocurrency.
  777389