A consensus mechanism is used to verify and secure cryptocurrency transactions. Proof of Stake( PoS) is one of the top cryptocurrency consensus mechanisms.
Proof of stake helps in selecting the blockchain participants to verify the transaction in the blockchain. People who verify the transaction using PoS are called validators.
Token holders must deposit (which is called “stake”) a specified amount of crypto to participate in the validation mechanism.
Validators are selected randomly. The chances of selection increase with the number of tokens held in the wallet. The one who accurately verifies will get rewarded.
Proof of Stake needs less computational power and is more energy efficient than other consensus mechanisms. It allows more people to participate in the blockchain. However, incorrect validation will lead to a penalty.
Popular cryptocurrencies that use Proof of Stake (PoS) are Solana, Cardano & Terra.
And while we are on this topic, here’s an extremely cool way to get started with your crypto investment journey. weTrade is an innovative crypto investment platform which offers zero trading fee on all coins. Not now, but forever. Worried about 1% TDS levied by the government? Well, WeTrade’s got you covered. No literally. They cover 1% TDS as well. To top it all, you also get a 1% cashback on 50+ coins when you buy. Yup, it is extremely rewarding if done right.
Image Credit: https://www.freepik.com/
A-61, Zonasha Paradiso, Alpine
Eco Road, Doddenekundi, Bengaluru
© 2022 WeTrade. All rights reserved.