The main advantage of this system is lower
Posted: Mon Feb 03, 2025 4:20 am
In proof-of-stake systems, there is no mathematical puzzle to solve, but rather the creator of a new block is chosen deterministically based on their stake; stake is measured by how many coins or tokens they own. For example, a person who owns 50 coins is 5 times more likely to be chosen to validate the next block than a person with 10 coins.
Energy consumption since the mining process through solving puzzles is eliminated. Additionally, it encourages those who are truly interested in the network to do the mining, unlike a PoW system where miners may have no interest in the network beyond getting compensation for their work.
It is important to note that in a PoS network, no new coins are created, but all coins are created from scratch. So those who validate blocks are rewarded through transaction fees, rather than new coins. Since no new coins are being afghanistan consumer email list mined, these people who do the validating in a PoS system are called forgers.
Comparison
Cost and energy
PoS systems have the potential to consume much less energy than PoW systems. For example, the Bitcoin network has an annual energy consumption of 57.6 TWh, which is similar to the consumption of the entire country of Colombia.
Software Guru Note: The consumption mentioned by the author was in April 2018. At the time of publishing this article, in August 2018, the annual consumption is already 73.1 TWh [2].
Energy consumption since the mining process through solving puzzles is eliminated. Additionally, it encourages those who are truly interested in the network to do the mining, unlike a PoW system where miners may have no interest in the network beyond getting compensation for their work.
It is important to note that in a PoS network, no new coins are created, but all coins are created from scratch. So those who validate blocks are rewarded through transaction fees, rather than new coins. Since no new coins are being afghanistan consumer email list mined, these people who do the validating in a PoS system are called forgers.
Comparison
Cost and energy
PoS systems have the potential to consume much less energy than PoW systems. For example, the Bitcoin network has an annual energy consumption of 57.6 TWh, which is similar to the consumption of the entire country of Colombia.
Software Guru Note: The consumption mentioned by the author was in April 2018. At the time of publishing this article, in August 2018, the annual consumption is already 73.1 TWh [2].