When some time passed after the launch of Bitcoin, the crypto community repeatedly raised questions about the presence of certain shortcomings in the Proof Of Work (PoW) algorithm, and the question of the appearance of other algorithms was only a matter of time. This is how Proof Of Stake (PoS) was born.
The main difference between PoS and PoW is that the so-called pseudo-random process of selecting a node has been introduced in PoS - that means, who will play the role of a block validator, and the validator's reward comes from the commission with the transaction he confirmed, that means, it is not fixed. In this case, the key factors for the choice are age, and the number of coins, that forms the size of the steak of a given node. Although, in order for newer nodes with a smaller stake volume to become validators, the principle of randomization is introduced in the algorithm, so the new node can be selected randomly.
In view of the above, there is no need for mining, and the new process is called forging. It should be noted that, usually, cryptocurrencies which are using PoW, for the first time of their existence worked on PoS and only then switched to another algorithm.
In order to join the process, you need to purchase a cryptocurrency and fix it on the network. Then just wait until your specific node will be selected as a validator. The principle of selection was described earlier - the age and size of coins affect, however, thanks to the mechanism of pseudo-random selection, almost everyone has a chance. Moreover, as soon as a node has been selected by a forger (validator), its age in the network is also reset to zero. In the process, he needs to check the validity of transactions, and then add their block, taking a certain part of it as a reward.
Further, the one who was the forger is checked by the next node, and if the hash of the forger's block does not fit the chain, he loses the reward and the entire stack in the network. Considering that the number of coins in the stack is several times higher than the reward, there is no benefit of any fraud.
PoS is an extremely efficient algorithm due to the absence of mining and increased security. However, like PoW, it is susceptible to a 51 percent attack, although given the pseudo-random choice, fraud can be detected with a certain probability.
Website: https://exbase.io/ru/
Twitter: @exbase_io_
Facebook: https://www.facebook.com/exbase.io/
Telegram customer support: https://t.me/Exbaseofficial