As we all know that blockchain technology is developing day by day and new blockchains with unique and more advanced features are starting to appear. There are a number of consensus algorithms on which various blockchains are based.

The mechanisms that are widely used today are Proof-of-Stake (PoS) and Proof-of-Work (PoW). But blockchain developers are working hard to introduce different and more advanced consensus mechanisms. One such mechanism is the Leased Proof-of-Stake mechanism used by the Waves platform.

• The Leased Proof-of-Stake mechanism, abbreviated as LPoS, is a consensus mechanism used by the Waves platform, blockchain-based exchange, and token development platform.

• Leased Proof-of-Stake is an extension of the Proof-of-Stake mechanism. In PoS, investors stake their respective tokens and can act as a node to validate transactions and blocks. But Leased Proof-of-Stake is something different from a PoS mechanism.

• Leased Proof-of-Stake, as the name suggests, is a consensus mechanism by which investors can lease their crypto assets (tokens) to validator nodes that use these tokens to continue transactions carried out on the platform.

• Here, leasing means giving tokens to a particular node operator for rent and getting a percentage of the tokens earned as a reward.

• In LPoS, investors can stake tokens and lease them to node operators and when these tokens are used by nodes for mining purposes, profits will be transferred to tenants (token givers).

• When a tenant leases multiple tokens to a node, it does not mean that the tokens are transferred to the node address, but these tokens remain in the tenant's wallet and the tenant has full control over them.

• Rewards given to tenants can be in the form of WAVE tokens or other tokens that can be run on the platform.

• It is very important to choose a node that can reward tenants with high profits, because there are different node operators that provide different percentage of rewards.

• The rent from the lessee also depends on the amount rented from the investor. The more the amount rented, the more reward is given to the tenant as profit.

• Tenants can cancel the lease whenever they want as they have full control over the tokens rented.

• I repeat that the selection of node operators to lease tokens is a very important factor to get more profit.

• The more transactions made by the node, the more rewards for the tenant. And node operators are rewarded with mining rewards. In this way, both bodies can make a profit.

• The Waves platform uses this consensus mechanism to improve network scalability (increases on-chain scalability rather than lightning techniques).