Proof-Of-Stake is a new consensus algorithm for the Bitcoin blockchain. It works by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof of work schemes. The first functioning use of PoS for cryptocurrency was Peercoin in 2012.
Table of contents
Understanding Blockchain Fundamentals: Proof-Of-StakeIntroductionQuick Recap On ConsensusDrawbacks of Proof-Of-Work Consensus SchemeEnter QuantumMechanicAlgorithm DesignHow is security guaranteed?Key TakeawaysThe 51% attackRisks With Proof-Of-StakeSort: