What is proof of stake? And how is it different from proof of work?

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What is proof of stake? And how is it different from proof of work?

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Anonymous 0 Comments

With proof of stake, you don’t have to perform complex calculations anymore to find a specific valie, but you only need to validate blocks.

Instead of providing compute power for complex calculations, you lock (stake) a significant part of the crypto you want to be a validator for (32ETH for a validator node on ETH for example).

Your node needs to provide a consensus value (the same value as all other nodes) or your staked coin can be lost, this is the actual stake which forces to provide correct values.

Nodes are chosen randomly to validate blocks, and you get rewarded for that. Your node only needs to validate (or not) a transaction.

If you validate malicious blocks, you lose your stake. You may also lose your stake if you fail to validate a block in the allowed time (if your node goes offline for example).

This mechanism ensures the stakes are motivating enough to validate blocks truthfully.

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