PROOF OF STAKE

The Proof of Stake algorithm works towards a distributed consensus from its users. Instead of the traditional Proof of Work algorithm which focuses on intensive energy consumption to decide who will create the next block, in the blockchain, the Proof of Stake algorithm picks from among its users to decide who gets to create it. The selection of the users is randomized by creating a formula on the basis of coin age, user stake, hash value etc., avoiding next block and earn the reward. This eliminates the need of miners and the cryptocurrency stays within the user pool. The selection avoids any kind of centralization due to wealth. The Proof of Stake is thus technologically designed to ensure that the cryptocurrency network stays protected through active user involvement in the process of security onto genesis.


© Biztechnologies.in. 2018 - All Rights Reserverd.