46 votes
Accepted

Why doesn't Bitcoin migrate to proof-of-stake?

Proof of Stake is basically a case of having your cake and eating it, too. PoW is a simple work-around to a coordination problem that was previously thought to be unsolvable. It sort of "cheats&...
Murch's user avatar
  • 74.5k
21 votes

Why doesn't Bitcoin migrate to proof-of-stake?

I think there are at least four reasons: The miners are stakeholders in the bitcoin ecosystem. Mining solves a problem for them. Taking away PoW mining would make bitcoin no longer work for one of ...
David Schwartz's user avatar
15 votes
Accepted

How is a proof-of-stake block mined at the block level, and how does it accomplish it's goals?

Proof-of-stake mining is similar to Proof-of-work at a technical level. It involves a sort of lottery, similar to proof-of-work, but the difficult of this lottery is weighted depending on how many ...
Earlz's user avatar
  • 1,130
14 votes

Why doesn't Bitcoin migrate to proof-of-stake?

I think there are some very convincing theoretical arguments to be made, but there is also just a very practical consideration: Right now, a very large portion of BTC is being held in the cold ...
chytrik's user avatar
  • 18.1k
8 votes
Accepted

Is the Lightning network a proof-of-stake system?

Calling the Lightning Network (LN) a Proof-of-Stake (PoS) system is orthogonal to the concept usually labeled as PoS. What we usually describe as PoS is a mechanism to achieve distributed consensus ...
Murch's user avatar
  • 74.5k
8 votes
Accepted

What's the difference between PoW and PoS?

The following points try to simplify/abstract: A cryptocurrency has its own blockchain to store all the transactions that occurred. A proof of work/stake algorithm are different methods (or ...
karask's user avatar
  • 2,530
7 votes
Accepted

How does Proof of Burn work?

Attention: Ambiguity! Note that the term (or abbreviation) "PoB" can be used differently. For example, some cryptocurrencies allow users to get some of their coins for provably burning money in ...
UTF-8's user avatar
  • 3,224
7 votes
Accepted

How does a miner get selected in Proof Of Stake?

The minting algorithm for staking is different for various coins; for example, it is different in BlackCoin from Cardano. There are several approaches to staking, but most of them are susceptible to "...
dionyziz's user avatar
  • 1,012
7 votes
Accepted

In what sense does the security model of proof-of-stake require users to "log on to the internet every few months"

What Vitalik is talking about is the Slasher algorithm that he designed which punishes the block signer if he attempts to create a fork in the blockchain. However the way that slasher works is that ...
Ava Chow's user avatar
  • 69.9k
6 votes

Has PoS really been proven secure under comparable assumptions as Bitcoin?

The Ouroboros line of work proves security comparable to Bitcoin's security. The proofs of security in Ouroboros are similar in style to the Backbone proofs of security, which show that Bitcoin is ...
dionyziz's user avatar
  • 1,012
6 votes

How much more energy efficient is PoS (proof of stake) than PoW (proof of work)? Are there any figures on this?

When providing an equivalent amount of security, I don't believe PoS can be more efficient than PoW. I do understand how it may appear this way on the surface, but I think deeper consideration shows ...
chytrik's user avatar
  • 18.1k
5 votes
Accepted

What does one need to do to earn Decred through PoS?

Decred has a hybrid Proof-of-Work/Proof-of-Stake model, which means that block rewards are shared between the miners and the stakers (and the developers), with PoW mining earning the larger portion of ...
Samarth Hattangady's user avatar
5 votes
Accepted

How do I join the NXT 2.0 (Ardor) distribution if it isn't an ICO? And how does it affect NXT 1.0 holders?

The Ardor launch will happen in 2017, but the distribution of the main ARDR tokens will be based on the Nxt 1.0 balances. And yes, as far as I know it is the first scalable blockchain platform using ...
Van B's user avatar
  • 66
5 votes
Accepted

Why do we need to chain the blocks (creating blockchain) in a permissioned blockchain?

I think you might already know the answer, based on your question. The "chain of blocks" has value in Bitcoin because of the proof of work. It is also provides a data structure that can be used in an ...
JBaczuk's user avatar
  • 7,368
5 votes

Why doesn't Bitcoin migrate to proof-of-stake?

Bitcoin should switch to BFT (Byzantine Fault Tolerant) PoS which is secure by definition. Most people that don't like PoS are thinking in "vanilla" or "chain based" PoS protocols ...
Tux's user avatar
  • 77
4 votes
Accepted

Is Ethereum essentially Bitcoin with Turing-complete Script?

Is Ethereum essentially Bitcoin with a Turing-complete scripting language and, if I understand correctly, where the script to be executed (not its hash) is placed in the Ethereum blockchain? That's a ...
Nick ODell's user avatar
  • 29.4k
4 votes

How is a proof-of-stake block mined at the block level, and how does it accomplish it's goals?

Here are some closely related observations on the topic that might help other newbies like me to understand PoS. I spend a couple of hours trying to put things together and to be honest coming from ...
cru3lgenius's user avatar
4 votes
Accepted

How are gridcoin transactions validated?

Gridcoin is a proof-of-stake coin. Transactions are bundled and signed like any other blockchain, but with proof-of-stake the chance to sign is determined by coin balance and the time since your last ...
Nate Simpson's user avatar
4 votes

How to model randomness in validators selection in PoS?

I understand it is a random selection based on fraction of stake a validator has, similar to PoW. Not correct. In PoW, any miner can mine the next block. In PoS, a specific validator is chosen by the ...
Ugam Kamat's user avatar
  • 7,398
3 votes
Accepted

Difference between staking and mining?

Mining requires doing work (i.e. using electricity to power machines that perform the proof of work) to produce blocks and earn coins. Staking generally requires those that are staking to lock up ...
Ava Chow's user avatar
  • 69.9k
3 votes
Accepted

Minimum how much bitcoin may I get per week if I stake 0.05BTC?

Bitcoin uses pure PoW (proof of work) mining, so you can't really "stake" your 0.05BTC. The only thing that will determine how much bitcoin you may get, will be your computing power, measured in ...
JollyMort's user avatar
  • 401
3 votes
Accepted

How to make PoS system work?

If you want a system with centralized trust, I suppose you could do a 100% pre-mine, and have some checkpoints to 'lock' this, and have all nodes verify against the checkpoint coming from a trusted ...
JollyMort's user avatar
  • 401
3 votes

How does Proof of Burn work?

With proof of burn, instead of pouring money into expensive computer equipment, you 'burn' coins by sending them to an address where they are irretrievable. By committing your coins to never-never ...
user57175's user avatar
3 votes

How does Proof of Burn work?

Think of the burning Bitcoin to create XCP in such a way: You take $1,000 of 20 dollar bill to the US Treasury Department, and US Treasury Department burns it, and mints 250 notes of 4 dollar bills ...
Lenard's user avatar
  • 31
3 votes
Accepted

What happens if the transaction interrupted during proof of stake?

It's unclear what the question is. If by "transaction" you mean solving a PoS block, then you cannot relay this new block to the network if you're offline, so the network participants will continue ...
user36303's user avatar
  • 786
3 votes

How does proof-of-stake "mining" work?

Proof of Stake uses fundamentally the same process as Proof of Work, but with a few key differences. In Proof of Work miners are searching for a hash of the transactions in mempool + data from the ...
Scalextrix's user avatar
3 votes
Accepted

In PoS how is Net Stake Weight calculated

While I don't know how other PoS blockchains operate, I can give some insight about the PoSv2/3 version based on Peercoin's implementation of proof of stake; one such example would be Novacoin. The ...
theodor96's user avatar
3 votes
Accepted

What is the "main" difference between consensus mechanism of Bitcoin and Ethereum?

The base proof of work system only differs on the block time, and the hashing algorithm. Bitcoin uses sha256d, ethereum uses ethash. Ethereum currently does not make use of Proof of Stake, although it ...
Raghav Sood's user avatar
3 votes

Is there a reward or penalty for validators in proof-of-stake (PoS)?

To give an example i know, in Tezos which has a variant of POS called LPOS (liquid proof of stake), at high level and without giving too much details: the incentive to participate is offered by block ...
Ezy's user avatar
  • 131
3 votes

What are the biggest Proof-of-Stake roadblocks?

PoS will not become the defacto standard because Bitcoin is the defacto standard, and it is based on PoW. PoS has a different risk/reward tradeoff to PoW, because funds are not irrevocably committed ...
Mark H's user avatar
  • 3,334

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