Distributed Consensus — Proof of Stake

Proof-of-Stake is another pretty popular consensus algorithm in the blockchain space. Time to shed some light on it and take a look at what it offers.

A Quick Recap On Proof-Of-Work

A Proof-Of-Work algorithm requires miners to do a certain amount of work that is compute-intensive to gain access to a service or the right to do something. This algorithm, by design, also requires that the work done shall not be reusable for anything else than what it was performed for. This lies at the core of the security concept of a blockchain. To gain the right to append a new block to a chain and to get some currency as a reward, there is work to be done, and this work must be verifiable.

That work is a race between different miners. Many miners try to compete and to be the first to find the answer to a problem presented to them. This implies that a lot of energy is wasted as only the first correct solution is accepted.

You can find a more detailed article on Proof-Of-Work here.

Enter Proof-Of-Stake

Proof-Of-Stake is another algorithm, designed to create distributed consensus on a blockchain while being less energy-intensive and more scalable than Proof-Of-Work. The first mention (I know of) of Proof-Of-Stake dates back to 2011 when…