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Proof-of-Stake (PoS) is rapidly replacing the PoW as an "ecological" alternative. Discover the main features and benefits presented by this consent mechanism Blockchain.
Proof-of-Stake (PoS): a valid ecological alternative to PoW
If you are a trader and an investor you must be aware that Bitcoin, together with most other cryptocurrencies, uses the Proof-of-Work (PoW) mechanism for checking transactions on your network.
This blockchain verification method is the real reason behind the criticalities of Bitcoin and the other currencies that use it.
First, it creates sustainability problems due to thehigh energy consumption during the verification process.
Think about the fact that Bitcoin mining consumes almost 41 terawattora of energy: This equates to New Zealand's annual energy consumption.
In such cases, the Proof-of-Stake (PoS) is rapidly replacing as ecological alternative to PoW.
Not only does it limit the amount of computing power used to mine a block, it also effectively addresses the security problems presented by the PoW mechanism.
What is Proof of Stake?
Il Proof of Stake (PoS) is a blockchain consensus mechanism where block miners are selected by an algorithm.
Unlike PoW, PoS does not involve any competition to extract new blocks. The users with the most bets are selected by the algorithm on a random basis.
The PoS uses a computer algorithm to select the miners based on the number of tokens (pegs) present in the network.
Proof-Of-Stake (PoS) Consensus: what are the advantages?
Here is one of the main ones advantages of the PoS mechanism: users do not have to compete with each other.
This means that energy consumption is substantially lower than PoW consent.
Miners are more motivated to protect the ledger and a series of penalties are provided for those who try to harm the system.
Many blockchains of modern generation like OKCash, Titanprojects (Titan Coin) e NavCoin use Proof-Of-Stake consent to protect the interests of miners and make them safer transactions ed efficient from the energy point of view.
Resorting to PoS consensus also increases the overall profitability of blockchain miners, while reducing costs.
Is PoS better than PoW?
We can conclude by observing that the Proof-of-Stake is certainly less expensive from an operational point of view than its counterpart and, at the same time, it solves the costs and ecological issues of traditional mining.