Proof of stake

From MarketsWiki
Jump to navigation Jump to search


Proof of stake is a consensus algorithm similar to proof of work. A blockchain that uses the proof of stake algorithm does not rely on "traditional" mining to validate transactions and determine who gets to add a new block to the blockchain - at least, not in the same way as bitcoin and other digital currencies using the proof of work model.[1] Instead, the network assigns specific users to serve as "validators" - users who create blocks and validate changes made to the blockchain based on how much of the network's cryptocurrency they hold. Ethereum creator Vitalik Buterin described this theoretical model in detail on his website.[2] The idea is that the more of a network's cryptocurrency you have, the higher your stake in that system. The higher your stake, the more likely you are to be chosen by the system to create a new block. Another key difference is that, rather than "discovering" cryptocurrency tokens in a blockchain, all the tokens already exist - they are simply parsed out over time by the network.[3]


John Lothian News logo1.png

JLN News Feed

What Is OpEx? Third Week Options Expiration Is Shaking Up Markets
Observations & Insight ****SC: Cboe Europe Derivatives’s first-week volume tally (as of September 13) was 64 contracts, a Cboe spokesman confirmed. The most-traded futures contrac...

View Page

Options Veterans Forge New Path With Tried-And-True Strategy
As its name suggests, Options Solutions is an options-centric asset-management firm that aims to increase the returns of investors’ portfolios with customized options strategies. JLN’s John Lothian...

View Page

MIAX said it will launch cash-settled futures contracts on BRIXX™ Commercial Real Estate (CRE) Indexes developed by Advanced Fundamentals.  The first contract to be listed, the BRIXX Ret...

View Page

Here’s why your food prices keep going up
First Read $53,406/$300,000 (17.8%) ++++ Hits & Takes John Lothian & JLN Staff The SEC has surpassed $1 billion in awards for its whistleblower program with the latest awards totall...

View Page

We visit more than 100 websites daily for financial news (Would YOU do that?). Read the John Lothian Newsletter.