====== Proof of Stake (PoS) ======
[[dido:public:ra:xapend:xapend.k_consensus:02_mechanism:start | Return to Consensus Mechanism ]]

The definition is provided by Frankenfiels((
Jake Frankenfield,
Investopedia,
__Proof of Stake (PoS)__,
21 April 2021,
Accessed: 18 July 2021,
[[https://www.investopedia.com/terms/p/proof-stake-pos.asp]]
)): 

//The **Proof of Stake (PoS)** concept states that a person can mine or validate block transactions according to how many [[dido:public:ra:xapend:xapend.a_glossary:c:coins|coins]] they hold. This means that the more coins owned by a miner, the more [[dido:public:ra:xapend:xapend.a_glossary:m:mining|mining]] power they have.//

//The proof of stake was created as an alternative to the [[dido:public:ra:xapend:xapend.a_glossary:p:proof_of_work|proof of work (PoW)]] concept, to tackle inherent issues in the latter. Currently, only altcoins use the proof of stake concept. When a transaction is initiated, the transaction data is fitted into a block with a maximum capacity of 1 megabyte, and then duplicated across multiple computers or nodes on the network. The nodes are the administrative body of the blockchain and verify the legitimacy of the transactions in each block.//

//To carry out the verification step, the nodes or miners would need to solve a computational puzzle, known as the proof of work problem. The first miner to decrypt each block transaction problem gets rewarded with a coin. Once a block of transactions has been verified, it is added to the [[dido:public:ra:xapend:xapend.a_glossary:b:blockchain|blockchain]], a public transparent ledger.//



/**=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
/* To add a discussion page to this page, comment out the line that says 
  ~~DISCUSSION:off~~
*/
~~DISCUSSION:on|Outstanding Issues~~
~~DISCUSSION:off~~