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]

References[edit]

John Lothian News logo1.png

JLN News Feed

Coinbase Purchases FairX; NinjaTrader Acquires Tradovate; UBS Faces Legal Battles – THE SPREAD – January 14, 2022
ALEX PERRY'S OPTIONSTOPIA: takes a look at this week’s options news highlights: Coinbase Purchases FairX; NinjaTrader Acquires Tradovate; UBS Faces Legal Battles JOHN'S TAKE: Cboe’s Empow...

View Page

Futures exchanges as “hot commodities” is the theme of ”John’s Take”
JOHN'S TAKE: Cboe’s Empowerment Program is the theme of ”John’s Take”

View Page

Tom Jarck of MIAX explains “VSPIKES”
TERM OF THE WEEK: VSPIKES by Tom Jarck of MIAX

View Page

“Alex Perry’s Optionstopia” takes a look at this week’s options news highlights. This week Coinbase Purchases FairX; NinjaTrader Acquires Tradovate; UBS Faces Legal Battles.
ALEX PERRY'S OPTIONSTOPIA: takes a look at this week’s options news highlights: Coinbase Purchases FairX; NinjaTrader Acquires Tradovate; UBS Faces Legal Battles

View Page

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