Proof of Stake - Revision history

Calliptamus: /* Delegated Proof of Stake */

2025-05-17T08:38:34Z

Delegated Proof of Stake

← Older revision		Revision as of 08:38, 17 May 2025
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	= Delegated Proof of Stake =		= Delegated Proof of Stake =

	The [[Delegated proof of stake]] closely resembles pooling of stakes in a manner, similar to PoW [[mining]]. According to the proof of share principle, instead of computing powers, the partaking users are pooling their stakes, certain amounts of money, blocked on their wallets and delegated to the pool’s staking balance.		The [[Delegated proof of stake]] closely resembles pooling of stakes in a manner, similar to PoW [[mining]]. According to the proof of share principle, instead of computing powers, the partaking users are pooling their stakes, certain amounts of money, blocked on their wallets and delegated to the pool’s [[staking]] balance.

	The network periodically selects a pre-defined number of top staking pools (usually between 20 and 100), based on their staking balances, and allows them to validate transactions in order to get a reward. The rewards are then shared with the delegators, according to their stakes with the pool.		The network periodically selects a pre-defined number of top staking pools (usually between 20 and 100), based on their staking balances, and allows them to validate transactions in order to get a reward. The rewards are then shared with the delegators, according to their stakes with the pool.

AllEd01: spelling, grammar

2022-09-26T07:40:51Z

spelling, grammar

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ChallengeAccepted at 13:34, 20 September 2019

2019-09-20T13:34:44Z

← Older revision		Revision as of 13:34, 20 September 2019
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	This principle allows increasing the decentralization, and minimizing the possibility of attaining of 51% of staking power by any of the pools, as such pool will be considered insecure by the users, and they would withdraw their stakes.		This principle allows increasing the decentralization, and minimizing the possibility of attaining of 51% of staking power by any of the pools, as such pool will be considered insecure by the users, and they would withdraw their stakes.

	== See also ==		= See also =
	*[[Proof_of_work\|Proof of work]]		*[[Proof_of_work\|Proof of work]]
	*[[Proof_of_burn\|Proof of burn]]		*[[Proof_of_burn\|Proof of burn]]

ChallengeAccepted at 13:34, 20 September 2019

2019-09-20T13:34:18Z

← Older revision		Revision as of 13:34, 20 September 2019
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	In Meni's, there's a skeleton based purely on hashrate, and superimposed on it are occasional checkpoints set by stakeholders. You can contribute PoW without having stake, and you can contribute PoS without having work, and in both cases your voting power and reward is linearly proportional to the resources you have.		In Meni's, there's a skeleton based purely on hashrate, and superimposed on it are occasional checkpoints set by stakeholders. You can contribute PoW without having stake, and you can contribute PoS without having work, and in both cases your voting power and reward is linearly proportional to the resources you have.

			= Delegated Proof of Stake =

			The [[Delegated proof of stake]] closely resembles pooling of stakes in a manner, similar to PoW [[mining]]. According to the proof of share principle, instead of computing powers, the partaking users are pooling their stakes, certain amounts of money, blocked on their wallets and delegated to the pool’s staking balance.

			The network periodically selects a pre-defined number of top staking pools (usually between 20 and 100), based on their staking balances, and allows them to validate transactions in order to get a reward. The rewards are then shared with the delegators, according to their stakes with the pool.

			This principle allows increasing the decentralization, and minimizing the possibility of attaining of 51% of staking power by any of the pools, as such pool will be considered insecure by the users, and they would withdraw their stakes.

	== See also ==		== See also ==

Randolf: /* Motivation For Proof of Stake */ Fixed formatting of numbered points

2017-11-10T03:09:50Z

Motivation For Proof of Stake: Fixed formatting of numbered points

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	* A proof-of-stake system might provide increased protection from a malicious attack on the network. Additional protection comes from two sources:		* A proof-of-stake system might provide increased protection from a malicious attack on the network. Additional protection comes from two sources:
	1) Executing an attack would be much more expensive.		*# Executing an attack would be much more expensive.
	2) Reduced incentives for attack. The attacker would need to own a near majority of all bitcoin. Therefore, the attacker suffer severely from his own attack.		*# Reduced incentives for attack. The attacker would need to own a near majority of all bitcoin. Therefore, the attacker suffer severely from his own attack.

	* When block rewards are produced through txn fees, a proof of stake system would result in lower equilibrium txn fees. Lower long-run fees would increase the competitiveness of bitcoin relative to alternative payments systems. Intuitively reduced fees are due to vast reductions in the scale of wastage of resources.		* When block rewards are produced through txn fees, a proof of stake system would result in lower equilibrium txn fees. Lower long-run fees would increase the competitiveness of bitcoin relative to alternative payments systems. Intuitively reduced fees are due to vast reductions in the scale of wastage of resources.

Randolf: Corrected name of BitcoinTalk.org member "QuantumMechanic" and linked the name to QuantumMechanic's profile page there.

2017-11-10T03:03:45Z

Corrected name of BitcoinTalk.org member "QuantumMechanic" and linked the name to QuantumMechanic's profile page there.

← Older revision		Revision as of 03:03, 10 November 2017
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	Proof of Stake is a proposed alternative to [[Proof of Work]]. Like proof of work, proof of stake attempts to provide consensus and [[Double-spending\|doublespend]] prevention (see [https://bitcointalk.org/index.php?topic=68213.0 "main" bitcointalk thread], and a [https://bitcointalk.org/index.php?topic=96854.0 Bounty Thread]). Because creating forks is costless when you aren't burning an external resource Proof of Stake alone is considered to an unworkable consensus mechanism.<ref>https://download.wpsoftware.net/bitcoin/pos.pdf</ref>		Proof of Stake is a proposed alternative to [[Proof of Work]]. Like proof of work, proof of stake attempts to provide consensus and [[Double-spending\|doublespend]] prevention (see [https://bitcointalk.org/index.php?topic=68213.0 "main" bitcointalk thread], and a [https://bitcointalk.org/index.php?topic=96854.0 Bounty Thread]). Because creating forks is costless when you aren't burning an external resource Proof of Stake alone is considered to an unworkable consensus mechanism.<ref>https://download.wpsoftware.net/bitcoin/pos.pdf</ref>

	It was probably first proposed [https://bitcointalk.org/index.php?topic=27787.0 here] by ~~Quantum Mechanic~~. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".		It was probably first proposed [https://bitcointalk.org/index.php?topic=27787.0 here] by a member named [https://bitcointalk.org/index.php?action=profile;u=241 QuantumMechanic]. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".

	Some argue that methods based on Proof of Work alone might lead to a low network security in a cryptocurrency with block incentives that decline over time (like bitcoin) due to [[Tragedy of the Commons]], and Proof of Stake is one way of changing the miner's incentives in favor of higher network security.		Some argue that methods based on Proof of Work alone might lead to a low network security in a cryptocurrency with block incentives that decline over time (like bitcoin) due to [[Tragedy of the Commons]], and Proof of Stake is one way of changing the miner's incentives in favor of higher network security.

Sgornick: Add link for Doublespend.

2015-10-10T12:33:47Z

Add link for Doublespend.

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	Proof of Stake is a proposed alternative to [[Proof of Work]]. Like proof of work, proof of stake attempts to provide consensus and doublespend prevention (see [https://bitcointalk.org/index.php?topic=68213.0 "main" bitcointalk thread], and a [https://bitcointalk.org/index.php?topic=96854.0 Bounty Thread]). Because creating forks is costless when you aren't burning an external resource Proof of Stake alone is considered to an unworkable consensus mechanism.<ref>https://download.wpsoftware.net/bitcoin/pos.pdf</ref>		Proof of Stake is a proposed alternative to [[Proof of Work]]. Like proof of work, proof of stake attempts to provide consensus and [[Double-spending\|doublespend]] prevention (see [https://bitcointalk.org/index.php?topic=68213.0 "main" bitcointalk thread], and a [https://bitcointalk.org/index.php?topic=96854.0 Bounty Thread]). Because creating forks is costless when you aren't burning an external resource Proof of Stake alone is considered to an unworkable consensus mechanism.<ref>https://download.wpsoftware.net/bitcoin/pos.pdf</ref>

	It was probably first proposed [https://bitcointalk.org/index.php?topic=27787.0 here] by Quantum Mechanic. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".		It was probably first proposed [https://bitcointalk.org/index.php?topic=27787.0 here] by Quantum Mechanic. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".

Lapp0: proof of stake and proof of work don't determine who signed a transaction, they attempt to solve doublespending.

2014-12-19T10:39:41Z

proof of stake and proof of work don't determine who signed a transaction, they attempt to solve doublespending.

← Older revision		Revision as of 10:39, 19 December 2014
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	Proof of Stake is a proposed alternative to [[Proof of Work]]. Like proof of work, proof of stake ~~provides a mechanism for determining who signs bitcoin transactions~~ (see [https://bitcointalk.org/index.php?topic=68213.0 "main" bitcointalk thread], and a [https://bitcointalk.org/index.php?topic=96854.0 Bounty Thread]).		Proof of Stake is a proposed alternative to [[Proof of Work]]. Like proof of work, proof of stake attempts to provide consensus and doublespend prevention (see [https://bitcointalk.org/index.php?topic=68213.0 "main" bitcointalk thread], and a [https://bitcointalk.org/index.php?topic=96854.0 Bounty Thread]). Because creating forks is costless when you aren't burning an external resource Proof of Stake alone is considered to an unworkable consensus mechanism.<ref>https://download.wpsoftware.net/bitcoin/pos.pdf</ref>

	It was probably first proposed [https://bitcointalk.org/index.php?topic=27787.0 here] by Quantum Mechanic. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".		It was probably first proposed [https://bitcointalk.org/index.php?topic=27787.0 here] by Quantum Mechanic. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".

Luke-jr: /* Peeroin */ Deleted irrelevant altcoin stub section

2014-06-08T22:03:53Z

Peeroin: Deleted irrelevant altcoin stub section

← Older revision		Revision as of 22:03, 8 June 2014
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	In Meni's, there's a skeleton based purely on hashrate, and superimposed on it are occasional checkpoints set by stakeholders. You can contribute PoW without having stake, and you can contribute PoS without having work, and in both cases your voting power and reward is linearly proportional to the resources you have.		In Meni's, there's a skeleton based purely on hashrate, and superimposed on it are occasional checkpoints set by stakeholders. You can contribute PoW without having stake, and you can contribute PoS without having work, and in both cases your voting power and reward is linearly proportional to the resources you have.

	~~== Peeroin ==~~
	~~[http://ppcoin.org Peercoin] is the first known implementation of a combined PoS/PoW system (released August 19 2012).~~

	== See also ==		== See also ==

Ripper234 at 20:35, 2 June 2014

2014-06-02T20:35:55Z

← Older revision		Revision as of 20:35, 2 June 2014
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	[[category:mining]]		[[category:mining]]
			[[category:Proof-of-x]]