Proof of stake explained in a nutshell.
Hi!I suggested to write a short explanation of how Proof of Stake works, sort of core principle without any technical terms or formulas.
What is proof of stake in a nutshell?
Proof of stake is a consensus mechanism that does not require usage of computational power. So, the ones who have the biggest amount of coins have the highest chance of creating a new block and minting new coins. Although many cryptos are using variations from this, such as coin age (as in peercoin), coin day weight (as in Novacoin) and so on.
Core difference between PoW and PoS
The core difference between proof of work and proof of stake is that in PoW miner has to solve hash function in order to create block with transactions and release it. In proof of stake there is no computational power involved. You have to proof only that you have ä coins. Also you get chance ä for getting new block for release.
Actual Implementations in coins
PoS is implemented in BlackCoin. In Blackcoin system the guy who has the highest amount of money has the highest probability of creating new blocks and releasing new coins.
In Peercoin the system is slightly different. There we have a concept of coin age introduced.It is counted since last transaction and is dropped after transaction with that coins.
There are more than 60 coins at the moment in december 2017 which use some or the other implementation of PoS.
P.S. Sorry for my English level guys, this is my second language, so I must have done some mistakes probably.
I transferred some proof of stake coins to an online staking pool about a week ago. It's been nice, because you don't have to leave your computer on. If anyone wants to try it out, here's the link- https://stakeunited.com/zemeda
That is my referral link, they also have a generous referral bonus structure. If you don't want to use my referral link, here's the direct link: https://stakeunited.com/
So far, I'm staking HOLD and BUZZ on there, and I'm going to add a few more soon.
Did u try like ADA coin? They are saying they use the most stable PoS.
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