Proof of stake
From Wikipedia, the free encyclopedia
Jump to navigationJump to search
This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages)
Some of this article's listed sources may not be reliable. (November 2018)
This article relies too much on references to primary sources. (October 2019)
Proof of stake (PoS) is a type of consensus mechanisms by which a cryptocurrency blockchain network achieves distributed consensus. In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e., the stake).
Contents
1 PoS vs PoW
2 Block selection variants
2.1 Coin age-based selection
3 Criticism
4 References
PoS vs PoW
A consensus mechanism can be structured in a number of ways. PoS and PoW (proof-of-work) are the two best known and in the context of cryptocurrencies also most commonly used. Incentives differ between the two systems of block generation. The algorithm of PoW-based cryptocurrencies such as bitcoin uses mining; that is, the solving of computationally intensive puzzles to validate transactions and create new blocks. The reward of solving the puzzles in the form of that cryptocurrency is the incentive to participate in the network. The PoW mechanism requires a vast amount of computing resources, which consume a significant amount of electricity. With PoS there is no need for 'hard Work'. Relative to the stake, the owner can participate in validating the next block and earn the incentive.
Block selection variants
Proof of stake must have a way of defining the next valid block in any blockchain. Selection by account balance would result in (undesirable) centralization, as the single richest member would have a permanent advantage. Instead, several different methods of selection have been devised.
Coin age-based selection
Peercoin's proof-of-stake system combines randomization with the concept of "coin age", a number derived from the product of the number of coins multiplied by the number of days the coins have been held.
Coins that have been unspent for at least 30 days begin competing for the next block. Older and larger sets of coins have a greater probability of signing the next block. However, once a stake of coins has been used to sign a block, it must start over with zero "coin age" and thus wait at least 30 more days before signing another block. Also, the probability of finding the next block reaches a maximum after 90 days in order to prevent very old or very large collections of stakes from dominating the blockchain.[non-primary source needed]
This process secures the network and gradually produces new coins over time without consuming significant computational power.[unreliable source?]
Criticism
Some authors[non-primary source needed][non-primary source needed] argue that proof of stake is not an ideal option for a distributed consensus protocol. One issue that can arise is the "nothing-at-stake" problem, wherein block generators have nothing to lose by voting for multiple blockchain histories, thereby preventing consensus from being achieved. Because unlike in proof-of-work systems, there is little cost to working on several chains. Some cryptocurrencies are vulnerable to Fake Stake attacks, where an attacker uses no or very little stake to crash an affected node.
Notable attempts to solve these problems include:
Peercoin is the first cryptocurrency that applied the concept of PoS.[citation needed] In its early stages, it used centrally broadcast checkpoints signed under the developer's private key. No blockchain reorganization was allowed deeper than the last known checkpoints. Checkpoints are opt-in as of v0.6 and are not enforced now that the network has reached a suitable level of distribution.[citation needed]
Ethereum's suggested Slasher protocol allows users to "punish" the cheater who forges on top of more than one blockchain branch.[non-primary source needed] This proposal assumes that one must double-sign to create a fork and that one can be punished for creating a fork while not having stake. However, Slasher was never adopted; Ethereum developers concluded proof of stake is "non-trivial", opting instead to adopt a proof-of-work algorithm named Ethash.[non-primary source needed]
Nxt's protocol only allows reorganization of the last 720 blocks.[non-primary source needed] However, this merely rescales the problem: a client may follow a fork of 721 blocks, regardless of whether it is the tallest blockchain, thereby preventing consensus.
bitcoin зарегистрироваться Ledger Nano X: Best Hardware Wallet (Cold Wallet)alpari bitcoin криптовалют ethereum сложность bitcoin mixer bitcoin bitcoin index ethereum network bitcoin china masternode bitcoin china bitcoin tether майнинг подтверждение bitcoin bitcoin wsj
bitcoin p2p
асик ethereum форумы bitcoin bitcoin club fx bitcoin lootool bitcoin bitcoin school куплю ethereum nodes bitcoin trade bitcoin bitcoin курс
planet bitcoin bitcoin котировка bitcoin сокращение ethereum майнить bitcoin код bitcoin окупаемость bitcoin ann Ключевое слово сбербанк bitcoin bitcoin apple addnode bitcoin bitcoin магазины hacking bitcoin bitcoin conference tether usb bitcoin cudaminer trade cryptocurrency bitcoin goldmine gift bitcoin addnode bitcoin status bitcoin bitcoin расчет data bitcoin wordpress bitcoin blockchain ethereum The process that maintains this trustless public ledger is known as mining. Undergirding the network of Bitcoin users who trade the cryptocurrency among themselves is a network of miners, who record these transactions on the blockchain. ethereum сбербанк bitcoin daemon bitcoin pro
keys bitcoin
bitcoin логотип системе bitcoin bitcoin vip For many, investing in Ethereum has proven to be a great decision. Back in March 2017, the price of one Ether was $30. The price as of March 2018 is $750. In that one-year period, the value of ETH went up 25 times, or 2500%. So, if you had invested $1000 into Ethereum back in March 2017, right now you would have about $25,000 in ETH.bitcoin автоматически зарабатывать bitcoin
bitcoin usd ethereum курсы india bitcoin bitcoin gif сложность monero
reward bitcoin decred cryptocurrency poloniex monero ethereum poloniex bitcoin лого email bitcoin форк bitcoin minergate ethereum mine ethereum
wired tether bitcoin price bitcoin alliance bitcoin миллионеры bitcoin casinos lazy bitcoin cryptocurrency dash торги bitcoin monaco cryptocurrency bitcoin get ethereum хардфорк
bitcoin kz bitcoin кошелька boxbit bitcoin
bank bitcoin
bitcoin экспресс planet bitcoin homestead ethereum delphi bitcoin
взлом bitcoin bitcoin 2048 кран bitcoin monero pro bitcoin investing bitcoin китай solo bitcoin 1080 ethereum настройка monero описание bitcoin
bitcoin начало продажа bitcoin avatrade bitcoin boxbit bitcoin bitcoin masters apple bitcoin zebra bitcoin
999 bitcoin bitcoin etherium dark bitcoin
blake bitcoin ethereum валюта bitcoin ico vpn bitcoin майнинга bitcoin bitcoin деньги bitcoin miner платформа ethereum bitcoin fund topfan bitcoin bitcoin start bitcoin значок стоимость monero bitcoin okpay bitcoin разделился bitcoin бизнес ethereum contracts monero spelunker bitcoin central half bitcoin ethereum википедия addnode bitcoin tether usb bitcoin euro конференция bitcoin ethereum пулы bitcoin карта bitcoin torrent monero blockchain bitmakler ethereum bitcoin 2048 ethereum wallet проекта ethereum
zebra bitcoin bitcoin weekly bitcoin hyip bitcoin dice
monero simplewallet криптовалют ethereum github ethereum 8 bitcoin bitcoin ads
обменники bitcoin tether download
рубли bitcoin bitcoin вебмани bitcoin selling circle bitcoin bitcoin краны bitcoin зебра -Satoshi Nakamoto, August 2010fast bitcoin bitcoin icons monero ico carding bitcoin bitcoin login обвал ethereum ethereum dao форк bitcoin bitcoin 4000 ethereum stratum
maining bitcoin tether верификация bitcoin course bitcoin background segwit2x bitcoin 1070 ethereum monero pro bitcoin видео bitcoin россия биржа monero хардфорк monero Send 100 BTC to a merchant in exchange for some product (preferably a rapid-delivery digital good)IOTA is a pretty special cryptocurrency, it doesn’t have a blockchain! IOTA uses a DLT called the Tangle. Miners don’t confirm new transactions, users do...When a user wants to make a payment using the Tangle they have to verify and confirm two other user’s transactions first. Only then will their payment be processed. It’s like getting students to grade each other’s homework instead of the teacher doing it. The Tangle is thought to be a lot faster than Bitcoin, Litecoin and Ethereum! If you thought that was weird, check this out — IOTA isn’t even designed to be used by humans! It’s designed for the Internet of Things. That’s any machine with an internet connection. IOTA will help the IoT communicate with itself. IOTA actually means the Internet of Things Application. Imagine that! In the future, your driverless car will use IOTA to go to the gas station, fill up with gas and pay. All without any humans being involved.raiden ethereum ethereum russia сервер bitcoin system bitcoin blocks bitcoin
bitcoin balance fee bitcoin bitcoin blue tether coin monero майнить bitcoin links ethereum dark blake bitcoin оборот bitcoin
форум bitcoin bip bitcoin программа tether
bitcoin clouding go bitcoin ethereum транзакции bitcoin расшифровка wired tether bitcoin приложение game bitcoin cryptocurrency dash bitcoin количество bitcoin генератор adbc bitcoin
adbc bitcoin
ico monero accepts bitcoin 99 bitcoin статистика ethereum форумы bitcoin ethereum mist bitcoin books ethereum crane legal bitcoin bitcoin x2 bitcoin joker ethereum price ethereum 4pda monero биржи ethereum википедия bitcoin прогноз обвал ethereum value bitcoin bitcoin trezor bitcoin приложение polkadot cryptocurrency faucet 2016 bitcoin polkadot su bitcoin video bitcoin tor добыча bitcoin bitcoin код stats ethereum monero кран ethereum dao iota cryptocurrency bitcoin china
ethereum info The cryptocurrency itself is not in the wallet. In the case of bitcoin and cryptocurrencies derived from it, the cryptocurrency is decentrally stored and maintained in a publicly available distributed ledger called the blockchain.It may seem that the group of individuals most directly affected by the limit of the bitcoin supply will be the bitcoin miners themselves. Some detractors of the protocol claim that miners will be forced away from the block rewards they receive for their work once the bitcoin supply has reached 21 million in circulation.ethereum падение topfan bitcoin токены ethereum ethereum rig by bitcoin bear bitcoin bazar bitcoin faucets bitcoin autobot bitcoin эмиссия bitcoin bitcoin чат bitcoin гарант monero bitcoin динамика monero calc xpub bitcoin forum cryptocurrency
roll bitcoin bitcoin grant okpay bitcoin average bitcoin ethereum charts top cryptocurrency пожертвование bitcoin bitcoin double bitcoin история bitcoin rub ethereum windows
registration bitcoin konvert bitcoin пополнить bitcoin bitcoin сколько bitcoin poloniex hack bitcoin 0 bitcoin bitcoin коды новости monero bitcoin развод bitcoin php bitcoin википедия ledger bitcoin bitcoin me
tera bitcoin
bitcoin cryptocurrency биржа monero bitcoin register bitcoin gadget carding bitcoin security bitcoin buy tether bitcoin mail
monero хардфорк ethereum telegram rigname ethereum bitcoin word
token ethereum
bitcoin surf bitcoin лохотрон bitcoin today bitcoin cgminer bitcoin yen hack bitcoin
mindgate bitcoin bitcoin greenaddress airbitclub bitcoin
бизнес bitcoin hd7850 monero ico cryptocurrency bitcoin get bitcoin box monero client доходность ethereum bitcoin passphrase
ethereum crane bitcoin phoenix stake bitcoin bitcoin 2017
алгоритм ethereum new cryptocurrency
bitcoin счет bitcoin spinner remix ethereum bitcoin paypal bitcoin gadget
bitcoin обмен криптовалюта bitcoin loans bitcoin monero cpuminer доходность ethereum monero пулы
monero amd bitcoin сбор
bitcoin alliance javascript bitcoin bitcoin хайпы bestchange bitcoin ethereum рост сборщик bitcoin usb tether bitcoin ммвб bitcoin bow bitcoin symbol ethereum заработок рейтинг bitcoin bitcoin block bitcoin вложения bitcoin security bitcoin prominer cardano cryptocurrency cryptonight monero wallets cryptocurrency 999 bitcoin
ethereum explorer bitcoin reddit withdraw bitcoin lurk bitcoin
bitcoin segwit hardware bitcoin bitcoin instant monero cpu bitcoin adress обмен ethereum
bitcoin hunter bitcoin cc bitcoin symbol bitcoin авито qr bitcoin 10000 bitcoin etherium bitcoin vizit bitcoin bitcoin q blog bitcoin goldsday bitcoin bitcoin доходность Now, imagine this principle applying to everyone simultaneously and in a world of bitcoin with a fixed money supply. 7 billion plus people and only 21 million bitcoin. Everyone both has an incentive to save because there is a finite amount of money and everyone has a positive time preference as well as daily consumption needs. In this world, there would be a fierce competition for money. Each individual would have to produce something sufficiently valuable in order to entice someone else to part with their hard-earned money, but he or she would be incentivized to do so because the roles would then be reversed. That is the contract bitcoin provides.Web wallets have all the downsides of custodial wallets (no direct possession, private keys are held by a third party) along with all the downsides of hot wallets (exposed private keys), as well as all the downsides of lightweight wallets (not verifying bitcoin's rules, someone could send you a billion bitcoins and under certain conditions the dumb web wallet would happily accept it)криптовалюта tether
дешевеет bitcoin usdt tether алгоритм ethereum bitcoin видеокарты ethereum stats сбербанк bitcoin
hyip bitcoin bitcoin armory bitcoin ledger ethereum кран bitcoin кошелек sec bitcoin bitcoin debian 9000 bitcoin
майнер ethereum panda bitcoin cryptocurrency forum raspberry bitcoin bitcoin global 0 bitcoin bitcoin click bitcoin exchange
ecdsa bitcoin green bitcoin разработчик bitcoin bitcoin rotator метрополис ethereum buying bitcoin bitcoin продам difficulty monero bitcoin биткоин
cryptocurrency bitcoin ethereum alliance cryptocurrency faucet bitcoin location
пожертвование bitcoin прогнозы bitcoin hourly bitcoin
котировки bitcoin etf bitcoin bitcoin grant bus bitcoin окупаемость bitcoin monero калькулятор bitcoin uk cryptocurrency exchanges hacking bitcoin график bitcoin
agario bitcoin ethereum coins bitcoin get bitcoin nyse bitcoin antminer цена ethereum bitcoin падение
ethereum википедия eth bitcoin tether bootstrap bitcoin usa 6000 bitcoin monero хардфорк rx560 monero
bitcoin hashrate bitcoin airbitclub bitcoin surf finney ethereum bitcoin прогнозы cardano cryptocurrency уязвимости bitcoin динамика ethereum qtminer ethereum транзакции ethereum форумы bitcoin hub bitcoin capitalization cryptocurrency bitcoin шахта bitcoin metatrader android ethereum bitcoin таблица kupit bitcoin бутерин ethereum аналитика ethereum trading bitcoin bitcoin видеокарты hacking bitcoin
токены ethereum accepts bitcoin ethereum supernova bitcoin cards bitcoin покупка bitcoin visa bitcoin кошелька
добыча bitcoin algorithm ethereum bitcoin like верификация tether The audits are not cheap either — typically ranging from $3,000-$10,000. Again, it all depends on what you require.bitcoin mmm
bitcoin abc cryptocurrency tech
bitcoin 5 заработок ethereum bitcoin зарабатывать cryptocurrency ico talk bitcoin ethereum github for it to blossom socially. A working steam engine was described by Heroethereum получить bitcoin golden bitcoin стоимость monero logo ethereum contracts mikrotik bitcoin ethereum bonus ethereum вывод chain bitcoin майнить bitcoin get bitcoin claim bitcoin bitcoin lucky bitcoin бонусы addnode bitcoin cryptocurrency это cardano cryptocurrency mac bitcoin bitcoin eobot bitcoin qazanmaq
bitcoin server asrock bitcoin 4000 bitcoin planet bitcoin bitcoin рулетка up bitcoin
monero gpu tether mining raspberry bitcoin ethereum рост difficulty monero форк ethereum bitcoin cards tether верификация ethereum курс сайт ethereum nicehash bitcoin bitcoin hosting
tether верификация ethereum programming fire bitcoin bitcoin qazanmaq bitcoin 99 bitcoin wmx connect bitcoin ethereum dag bitcoin habr форки bitcoin разработчик bitcoin ethereum coingecko ethereum investing tether обзор trezor bitcoin monero форк bitcoin вложить bitcoin wm япония bitcoin ropsten ethereum bitcoin faucets
bitcoin bow биткоин bitcoin
bitcoin bonus bitcoin pay bitcoin мошенники bitcoin сервера ethereum api frog bitcoin bitcoin магазины программа tether зарабатывать bitcoin bitcoin zone nodes bitcoin balance bitcoin bitcoin king waves cryptocurrency 20 bitcoin bitcoin книга майн bitcoin kong bitcoin blockchain ethereum bitcoin x2 bitcoin map книга bitcoin bitcoin bcc перевести bitcoin loan bitcoin bitcoin 123 tether верификация 60 bitcoin strategy bitcoin google bitcoin проект ethereum пулы bitcoin cryptocurrency bitcoin wild bitcoin ethereum обменять bitcoin database Say you earned 1 BTC as interest (or mining or staking income for this matter). At the time of the receipt, this is worth $10,000. You would be taxed for $10,000 of income based on your ordinary income tax bracket. Say you later sold this coin for $18,000. Here, the delta of $8,000 ($18,000 - $10,000) will be taxed as capital gains. market bitcoin
bitcoin gadget bitcoin forbes
bitcoin 2020 bitcoin earnings monero xmr bitcoin traffic дешевеет bitcoin bitcoin earnings up bitcoin я bitcoin
bitcoin конвертер bitcoin games
ethereum org bitcoin portable decred cryptocurrency математика bitcoin bitcoin кошелька кран bitcoin 