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What is Proof-of-Stake?


Reading about the blockchain mechanism, you must have come across consensus mechanisms used in transaction validation. Simply put, a consensus mechanism is a term to explain the rules that each miner agrees to regarding register updates (adding a block). A miner must provide an answer (known as proof) to a specific problem before being allowed to update the registry.

Proof-of-Stake works differently from the commonly used consensus (proof-of-work) mechanism in cryptocurrency. Technically, no one mines blocks in this mechanism, and there are no rewards. But they do receive a transaction fee as a proof-of-bid reward, proportional to the coins they bet to try to mine a particular block. A winner is randomly chosen to update the block, depending on the fraction of the wager provided that will be used in mining a particular block. This is one of the latest mechanisms to securely verify blocks, protect them from attacks, and follow a more decentralized model without running on cryptocurrency mining machines instead of storing PoS tokens or coins to participate in the process.



Popular Proof-of-Stake coins

VET (VeChain).

VeChain has a Proof of Authority coin (similar to Proof of Stake) that will give you back a VTHO token if you bet on your VETs. With a handy mobile app, you can easily bet your tokens and receive transaction fees.

Read also about popular proof of stake coins list like ETH 2.0, DEL, Tezos.

Cosmos (ATOM).

Cosmos, based on Proof-of-Stake, makes it easy for blockchains to interact with each other. It has its own coin called ATOM, the popularity of which can be easily proven as the company has raised over $16 million in its ICO.

IOSToken (IOST).

IOSToken is popular in the gaming industry, mostly used in services related to Internet services. It has the advantage of high transaction speed, which is achieved through more decentralized models.The cryptocurrency market is growing in terms of trading volume, market capitalization, number of traders and developers, and number of products and service providers. To maintain its position and attract more investors, the crypto space requires higher performance, which is provided by a variety of new tokens and coins with additional features to improve transaction speed, tracking efficiency, and in terms of decentralization.


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