Proof of Stake (PoS)
By CoinGecko | Updated on Mar 03, 2020
Initially designed to address the massive energy consumption. Rather than requiring miners / validators to spend resources on energy computational infrastructure, Proof of Stake is a consensus algoritm elects block validators to sign blocks based on the stake weight (an aggregate of how much token was staked and the length of time staked) of each validator.
Related Terms
Private Keys
The alphanumeric string which allows transactions from the cryptocurrency address
Protocol
The set of rules in a network in which participating members comply to allow proper communication.
Stablecoin
Cryptocurrency with a price peg to fiat currencies or commodity.
Derivatives
A financial instrument which derives its value from the performance of an underlying asset or index (eg. gold, crude oil)
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