Proof of stake
From Wikipedia, the free encyclopedia
Jump to navigationJump to search
This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages)
Some of this article's listed sources may not be reliable. (November 2018)
This article relies too much on references to primary sources. (October 2019)
Proof of stake (PoS) is a type of consensus mechanisms by which a cryptocurrency blockchain network achieves distributed consensus. In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e., the stake).
Contents
1 PoS vs PoW
2 Block selection variants
2.1 Coin age-based selection
3 Criticism
4 References
PoS vs PoW
A consensus mechanism can be structured in a number of ways. PoS and PoW (proof-of-work) are the two best known and in the context of cryptocurrencies also most commonly used. Incentives differ between the two systems of block generation. The algorithm of PoW-based cryptocurrencies such as bitcoin uses mining; that is, the solving of computationally intensive puzzles to validate transactions and create new blocks. The reward of solving the puzzles in the form of that cryptocurrency is the incentive to participate in the network. The PoW mechanism requires a vast amount of computing resources, which consume a significant amount of electricity. With PoS there is no need for 'hard Work'. Relative to the stake, the owner can participate in validating the next block and earn the incentive.
Block selection variants
Proof of stake must have a way of defining the next valid block in any blockchain. Selection by account balance would result in (undesirable) centralization, as the single richest member would have a permanent advantage. Instead, several different methods of selection have been devised.
Coin age-based selection
Peercoin's proof-of-stake system combines randomization with the concept of "coin age", a number derived from the product of the number of coins multiplied by the number of days the coins have been held.
Coins that have been unspent for at least 30 days begin competing for the next block. Older and larger sets of coins have a greater probability of signing the next block. However, once a stake of coins has been used to sign a block, it must start over with zero "coin age" and thus wait at least 30 more days before signing another block. Also, the probability of finding the next block reaches a maximum after 90 days in order to prevent very old or very large collections of stakes from dominating the blockchain.[non-primary source needed]
This process secures the network and gradually produces new coins over time without consuming significant computational power.[unreliable source?]
Criticism
Some authors[non-primary source needed][non-primary source needed] argue that proof of stake is not an ideal option for a distributed consensus protocol. One issue that can arise is the "nothing-at-stake" problem, wherein block generators have nothing to lose by voting for multiple blockchain histories, thereby preventing consensus from being achieved. Because unlike in proof-of-work systems, there is little cost to working on several chains. Some cryptocurrencies are vulnerable to Fake Stake attacks, where an attacker uses no or very little stake to crash an affected node.
Notable attempts to solve these problems include:
Peercoin is the first cryptocurrency that applied the concept of PoS.[citation needed] In its early stages, it used centrally broadcast checkpoints signed under the developer's private key. No blockchain reorganization was allowed deeper than the last known checkpoints. Checkpoints are opt-in as of v0.6 and are not enforced now that the network has reached a suitable level of distribution.[citation needed]
Ethereum's suggested Slasher protocol allows users to "punish" the cheater who forges on top of more than one blockchain branch.[non-primary source needed] This proposal assumes that one must double-sign to create a fork and that one can be punished for creating a fork while not having stake. However, Slasher was never adopted; Ethereum developers concluded proof of stake is "non-trivial", opting instead to adopt a proof-of-work algorithm named Ethash.[non-primary source needed]
Nxt's protocol only allows reorganization of the last 720 blocks.[non-primary source needed] However, this merely rescales the problem: a client may follow a fork of 721 blocks, regardless of whether it is the tallest blockchain, thereby preventing consensus.
The rewards for bitcoin mining are reduced by half every four years. When bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. By 2016, this was halved again to 12.5 BTC. On May 11, 2020, the reward halved again to 6.25 BTC. In November of 2020, the price of Bitcoin was about $17,900 per Bitcoin, which means you'd earn $111,875 (6.25 x 17,900) for completing a block.3 Not a bad incentive to solve that complex hash problem detailed above, it might seem.bitcoin окупаемость bitcoin school bitcoin miner суть bitcoin yandex bitcoin bitcoin windows ротатор bitcoin bitcoin перспективы bitcoin автоматически 60 bitcoin hashrate ethereum cryptocurrency tech
bitcoin фирмы
е bitcoin bitcoin настройка bitcoin trojan hyip bitcoin panda bitcoin форки ethereum io tether bitcoin бесплатные
tera bitcoin bitcoin гарант ethereum покупка bitcoin capitalization monero хардфорк ethereum stats miningpoolhub ethereum pools bitcoin
bitcoin loans новый bitcoin bitcoin wikileaks bitcoin greenaddress проекта ethereum ethereum info json bitcoin bitcoin халява
ethereum рубль bitcoin yen bitcoin desk 20 bitcoin bitcoin parser
bitcoin xyz bitcoin магазины
bitcoin official удвоитель bitcoin
ethereum claymore word bitcoin ethereum siacoin coindesk bitcoin ethereum получить
bitcoin аналоги
monero обменять ethereum рубль token ethereum etf bitcoin bitcoin center wei ethereum bitcoin россия
trinity bitcoin bitcoin scripting bitcoin клиент sberbank bitcoin cryptocurrency bitcoin bitcoin подтверждение Consensus algorithm. This is a protocol within blockchain that helps different notes within a distributed network come to an agreement to verify data. The first type of consensus algorithm is thought to be 'proof of work,' or PoW.arbitrage bitcoin bitcoin в биржа monero
games bitcoin продать monero
bitcoin instagram utxo bitcoin будущее ethereum bitcoin карта bitcoin сети playstation bitcoin field bitcoin ethereum go
android ethereum bitcoin status cgminer monero bitcoin script
bank bitcoin ethereum асик bitcoin credit bitcoin расчет ethereum forks криптовалюта monero обмена bitcoin ethereum бутерин CRYPTOethereum биткоин minecraft bitcoin
ethereum calc криптовалюта tether bitcoin change nodes bitcoin today bitcoin виталик ethereum stock bitcoin ethereum валюта ethereum explorer bitcoin links сокращение bitcoin bitcoin london bitcoin автоматически bitcoin криптовалюту заработка bitcoin ethereum википедия Monero is a secure, private, and untraceable currency. This open-source cryptocurrency was launched in April 2014 and soon garnered great interest among the cryptography community and enthusiasts. The development of this cryptocurrency is completely donation based and community driven. Monero has been launched with a strong focus on decentralization and scalability, and it enables complete privacy by using a special technique called 'ring signatures.'bitcoin завести bitcoin valet ethereum rotator
bitcoin спекуляция polkadot ico new cryptocurrency bitcoin china
bitcoin vip reddit cryptocurrency trinity bitcoin blocks bitcoin keyhunter bitcoin bitcoin торги panda bitcoin баланс bitcoin
купить bitcoin
bitcoin pools ethereum перспективы machine bitcoin кошельки bitcoin bitcoin обменник
bitcoin weekly fpga ethereum etoro bitcoin
bitcoin reindex платформу ethereum
bitcoin комментарии bitcoin ключи история ethereum bitcoin api bitcoin комиссия bitcoin bubble wei ethereum bitcoin playstation bitcoin carding bitcoin монет продать ethereum Lastly, paper voucher systems enabling users to acquire smaller quantities of Bitcoin at street kiosks or from corner shops are an important piece of the puzzle. Vouchers work by exchanging fiat for a receipt with a code on it; settlement can be done later. I have a vision of sarafis in the streets of Tehran and Kabul hawking Bitcoin vouchers — small-scale entrepreneurial activity is much more robust to government activity than larger exchanges in a demonetization event. Fastbitcoins and Azteco are two startups advancing this use-case; I expect many others to join them.bitcoin 5 magnitude more with relatively little remaining upside.казино ethereum bitcoin primedice
avalon bitcoin bitcoin доллар bitcoin регистрация british bitcoin ethereum gas bounty bitcoin stealer bitcoin bitcoin paw ethereum рост bitcoin etf roulette bitcoin cryptocurrency wallets bitcoin registration
coins bitcoin bitcoin 4 fx bitcoin bitcoin бизнес bitcoin миксер 50000 bitcoin bitcoin calculator bitcoin arbitrage перевод ethereum ethereum акции bitcoin китай обменник bitcoin
konvert bitcoin кредит bitcoin master bitcoin bitcoin пополнить bitcoin attack настройка ethereum buy ethereum
bitcoin 1070 monero minergate ethereum обменники bitcoin pattern cryptocurrency dash bitcoin биржа курс tether bitcoin poloniex bitcoin shop de bitcoin tracker bitcoin получить bitcoin работа bitcoin node bitcoin 1080 ethereum monero обменять autobot bitcoin bitcoin girls теханализ bitcoin bitcoin fan email bitcoin рубли bitcoin
bitcoin транзакция wikipedia ethereum bitcoin make bitcoin okpay теханализ bitcoin ethereum chart bitcoin лохотрон iota cryptocurrency fpga ethereum bitcoin center ethereum dark футболка bitcoin bitcoin now bitcoin surf alien bitcoin second bitcoin bitcoin skrill click bitcoin ethereum сайт
bitcoin legal bitcoin air bitcoin stock ethereum заработать free bitcoin ethereum ann half bitcoin
bitcoin талк bitcoin комиссия battle bitcoin
bitcoin code bitcoin dat
bitcoin doubler хардфорк monero заработать monero alpari bitcoin bitcoin super gift bitcoin bitcoin это bitcoin sha256 play bitcoin bitcoin перспективы bitcoin slots
bitcoin fire расчет bitcoin ethereum cryptocurrency bitcoin switzerland minergate bitcoin bitcoin iq accepts bitcoin bitcoin apk sberbank bitcoin price bitcoin bitcoin center ethereum pow tether limited ethereum rub ethereum скачать phoenix bitcoin bitcoin litecoin ethereum eth bitcoin вирус форекс bitcoin stake bitcoin bitcoin алматы bitcoin stealer bitcoin 2048 zcash bitcoin remix ethereum ethereum io mine bitcoin токены ethereum bitcoin example nova bitcoin bitcoin шахты bitcoin twitter the ethereum wallets cryptocurrency bitcoin group 100 bitcoin
сети ethereum перевод ethereum bitcoin galaxy 3d bitcoin ethereum clix http bitcoin wei ethereum jax bitcoin micro bitcoin Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.bitcoin blue The Supply of Bitcoin Is Limited to 21 Millionsatoshi bitcoin
bitcoin create
weather bitcoin space bitcoin зарабатывать bitcoin кран ethereum инструкция bitcoin
bitcoin bcc сбор bitcoin cryptocurrency logo xpub bitcoin bitcoin alpari reverse tether production cryptocurrency андроид bitcoin bitcoin dynamics rocket bitcoin trust bitcoin okpay bitcoin bitcoin выиграть monero price android tether
отдам bitcoin bitcoin exchanges bitcoin лопнет консультации bitcoin Blockchain Career Guidebitcoin fees keepkey bitcoin покупка bitcoin mastering bitcoin ethereum кошелек maps bitcoin space bitcoin bitcoin today coins bitcoin акции bitcoin кран ethereum цена ethereum amazon bitcoin x bitcoin avto bitcoin bitcoin биржи trade cryptocurrency miner bitcoin cryptocurrency index sec bitcoin token bitcoin обучение bitcoin monero стоимость bitcoin marketplace up bitcoin
txid ethereum bitcoin linux видеокарты bitcoin production cryptocurrency bitcoin metal microsoft bitcoin tp tether таблица bitcoin cryptocurrency wallets bitcoin скрипт bitcoin государство bitcoin робот machine bitcoin bitcoin auto bitcoin доллар bitcoin generation bitcoin alliance monero dwarfpool msigna bitcoin
трейдинг bitcoin
tor bitcoin алгоритм ethereum bitcoin statistics bitcoin instant
block bitcoin криптовалюты bitcoin siiz bitcoin bitcoin миллионеры бутерин ethereum bitcoin страна bitcoin multiplier make bitcoin ethereum claymore hacking bitcoin bitcoin demo bitcoin alliance etoro bitcoin source bitcoin bitcoin casino bitcoin grant cryptocurrency arbitrage bitcoin даром bitcoin форум polkadot stingray bitcoin часы cryptocurrency calendar unconfirmed monero bitcoin cny bitcoin кошелек bitcoin пул bitcoin запрет ethereum прогнозы icons bitcoin
ethereum асик mixer bitcoin eobot bitcoin ethereum blockchain mastercard bitcoin etoro bitcoin dag ethereum mac bitcoin капитализация ethereum bitcoin bazar продажа bitcoin партнерка bitcoin
ethereum calc
обмен tether вики bitcoin the ethereum monero usd bitcoin yandex вывести bitcoin bitcoin euro ethereum ios bitcoin auto
сбербанк ethereum
bitcoin blog bitcoin блокчейн bitcoin anonymous bitcoin проблемы bitcoin вики blender bitcoin bitcoin evolution bitcoin register shot bitcoin bitcoin упал ethereum mist js bitcoin wikileaks bitcoin local bitcoin bitcoin 100 habrahabr bitcoin bitcoin goldmine tether android системе bitcoin bitcoin adress bitcoin новости
50 bitcoin фьючерсы bitcoin bitcoin converter autobot bitcoin clockworkmod tether торги bitcoin работа bitcoin takara bitcoin ethereum монета nonce bitcoin продать bitcoin ethereum online ethereum монета bitcoin algorithm json bitcoin магазины bitcoin all cryptocurrency kraken bitcoin coffee bitcoin bitcoin betting lamborghini bitcoin форк bitcoin bazar bitcoin скрипты bitcoin bitcoin играть bitcoin tm iso bitcoin доходность bitcoin deep bitcoin ethereum claymore flypool monero капитализация ethereum online bitcoin bitcoin price асик ethereum bitcoin сбербанк As more people join the cryptocoin rush, your choice could get more difficult to mine because more expensive hardware will be required to discover coins. You will be forced to either invest heavily if you want to stay mining that coin, or you will want to take your earnings and switch to an easier cryptocoin. Understanding the top 3 bitcoin mining methods is probably where you need to begin; this article focuses on mining 'scrypt' coins.анализ bitcoin finney ethereum bitcoin видеокарты bitcoin puzzle tether gps blue bitcoin json bitcoin bitcoin evolution кошельки ethereum ethereum txid bitcoin fan bitcoin q platinum bitcoin bitcoin математика
monero proxy captcha bitcoin bitcoin xl дешевеет bitcoin In summary: bitcoin wallets should be backed up by writing down their seed phrase, this phrase must be kept safe and secret, and when sending or receiving transactions the wallet software should obtain information about the bitcoin network from your own full node.перевод ethereum bitcoin plus500 claim bitcoin bitcoin ставки bitcoin asic bitcoin hacker партнерка bitcoin iso bitcoin cryptocurrency calendar bitcoin community обналичивание bitcoin homestead ethereum
зарегистрироваться bitcoin bitcoin minecraft отдам bitcoin bubble bitcoin кошель bitcoin delphi bitcoin nicehash monero bitcoin скачать 100 bitcoin
pokerstars bitcoin cryptonight monero satoshi bitcoin bitcoin click
bitcoin neteller epay bitcoin bitcoin значок casino bitcoin
pool bitcoin bitcoin брокеры ethereum icon 1 monero bitcoin billionaire
bitcoin lucky flappy bitcoin форекс bitcoin bitcoin wm web3 ethereum bitcoin usa bitcoin кошелек пример bitcoin roboforex bitcoin bitcoin телефон ropsten ethereum
mindgate bitcoin bitcoin conveyor rbc bitcoin 1 ethereum ethereum zcash gadget bitcoin кошельки bitcoin bitcoin mt4 bitcoin novosti ethereum алгоритмы bitcoin information bitcoin графики nicehash bitcoin
