What is PoS? Bitcoin 101.

Last week I wrote an article about Bitcoins Proof of Work system. This week I will go over Proof of Stake.

What is Proof of Stake (PoS)?

Proof of Stake is a alternative to Proof of Work. In PoS cryptocurrency blocks are minted by those that own the coins instead of being created by miners. The more coins you own (stake) of a cryptocurrency the more likely you are to be chosen to forge transactions and be awarded transaction fee's.

(Img source: Blockgeeks.com)

The first Cryptocurrency to use PoS was Peercoin in 2012. Other coins include Nxt, Qora and ShadowCash. Ethereum is scheduled to switch from a PoW system to PoS in November 2017.

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