An explanation of proof-of-stake and how it works.
Hi all community friends, how are you tonight, I really hope you are always in good health so that we can share and exchange information here, so tonight I want to share my knowledge about proof-of-stake which I understand from several Google sources.
Proof-of-stake is a system used to ensure the supply of crypto currency is maintained or guaranteed from illegal coin printing. The concept is that users can validate transactions and create blocks on the blockchain network based on how many coins they hold. In other words, the more coins a user holds, the greater the amount of mining they have.
As an alternative to proof-of-work methods, proof-of-stake is a consensus algorithm that is inherently tied to blockchain technology. This method is used to confirm transactions and create new blocks in the blockchain chain.
Compared to Proof-of-Work, Proof-of-Stake is considered more efficient in energy use. Due mainly to the fees that must be paid, proof-of-stake rewards users or miners based on a percentage of the coins they hold in mining.
As we saw above, Proof of Stake works to create blocks based on the amount of cryptocurrency they hold. The more coins they have, the more likely they are to be selected to create a block and validate it.
The selection process is called stacking, where holders store or lock a certain number of tokens in their wallets to maintain network security. Token holders who participate in staking have a greater chance of validating blocks and receiving rewards in the form of additional tokens.
