I tried to explain what PoS is in comic strips.
I explained what PoS does mean and how PoS reflects the idea in the crypto space.
PoS or Proof of Stake is another consensus mechanism. Contrary to Proof of Work, the Proof of Stake approach moves away from the intensity of competition but rather focuses on transaction accuracy. Such a shift can potentially reduce energy consumption by 99.95%. Miners are becoming validators who stake their own cryptocurrency as a loan to become a node while working to help the network to process transactions. Everyone can truly contribute to the network as long as anyone holds cryptocurrency.
One of the most important features of Proof of Stake is energy efficiency. Compared to Proof of Work which focuses on the competition of miners that drives up energy consumption, Proof of Stake will slow down energy consumption and cut by 99.95% from MIT research. Instead of rewarding only miners in the blockchain, Proof of Stake rewards everyone to participate in the validating process. By inviting everyone to participate, it reduces the competition on the energy required to lower the overall cost of the network.
Decentralization vs. Security
PoS creates a path for decentralization. It makes everyone who can participate and possibly contribute as much as they can. However, there will be a trade-off of security in which members may accumulate large amounts of cryptocurrency to dominate the network. Such an event can have a negative impact on the network as known as a 51% attack
Miners will transit into validators who ensure accuracy of translation and to randomly be selected to create a block rather than focusing on competition to drive up the cost. It makes the network more efficient with low network fees, faster transaction times, and lower consumption of energy.
The biggest concern about PoS is a security risk. With fewer computers to control the network, one can easily take down the blockchain. Cryptocurrency is mainly to create a security environment that two parties can easily trade without worrying about their assets being attacked by hackers. Such security concerns will be a continuing debating subject on the progress of PoS development.
PoS is an alternative apart from PoW with high efficiency and further decentralized the network. However, security is one of the concerns that people will continue watching its evolvement.
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