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Author: Admin | 2025-04-27
Understand the Proof of Stake model, let’s first understand what does Proof of Stake mean. The consensus mechanism allows the owners of certain crypto to ‘stake’ a certain amount of coins on the native blockchain, hence the title. And what is stake in crypto, you ask? Well, ‘staking’ signifies the act of pledging a certain amount of the coins you own for verifying transactions on the blockchain. Keep in mind that your crypto is locked up for a specified time period when you stake them. Now, how are blocks validated on a Proof of Stake blockchain? Once a block of transactions is ready to be processed, the protocol chooses a ‘validator’ node to review the block from among those who have staked their crypto. The validator now checks if the transactions included in the block are valid, and once they confirm it, they add it to the blockchain. The validator is then rewarded for the successful completion of their task. However, if the block verified by a validator is found to have discrepancies, the validator is penalized and stands to lose some or all of their staked funds. Mining Power in Proof-of-StakeNow that you know what is stake in crypto, you must also be aware of how ‘mining power’ works in Proof of Stake. Mining power- or the ability to mine blocks- depends on the number of crypto tokens a user has staked. The more a user has staked coins, the more likely they are to be chosen as a
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