What is proof of stake?

Question

bitcoin

Could you explain in simple terms what proof of stake is? I read the articles on Habré and the description on Wikipedia did not understand anything. Can you put the idea as simply as possible?

Answer 1

Proof that you hold coins for a certain period of time without spending them.

Answer 2

With PoS, the miner is more likely to generate a new block in the general chain (to mine a block of coins for himself), the more currency he has in his wallet. This approach is used, for example, in forks: PeerCoin, NovaCoin, YaCoin. It is used in combination with the main one - Proof of Work, in which the network security is guaranteed by the computing power of the participants. The probability of generating the next block for an individual miner is directly proportional to its computing power. A 51% attack can be carried out on the network if the computing power is 51% of the total power of all miners in the network. Such an attacker will be able to reverse their transactions and reuse the funds.

Answer 3

To be honest, I did not find anything close to practical implementations in the comments.
There are currently two main currencies supporting PoS: Novacoin and PeerCoin.
The first is deflationary, the second is inflationary, but the differences from each other do not end there. This does not apply to this issue, therefore, it is suggested to search the Internet specifically in these currencies. I know more about Novacoin and can tell you more about its hybrid architecture implementation.
At the start of the currency, coins were first mined only with the help of PoW, so that there would be no situation when the developer initially has money and allegedly distributes it to whomever he wants. The first coins were mined, "in the old fashioned way" by video cards. When the first coins matured up to 30 days, PoS mining was already connected. The main issue and transactions go through the PoS for energy efficiency and, in my opinion (the opinions of the developers may differ), so that the coins get not so much to PoW miners who immediately drain coins on the exchanges, but to PoS miners interested in the development of the currency, keeping their money in Novacoin. There are 3 PoS blocks per one PoW block (normal power mining). The hybrid approach is used not only to issue the first coins, but also to improve security. Bitcoin and other PoW systems are vulnerable to a 51% PoW attack: gaining control of most of the power can attack the network with a doublespend, etc. The situation is similar in a pure PoS system: although it looks somewhat unlikely, if there is a person in a pure PoS system who has gained control over 51% of the money of the entire currency, then he can theoretically attack in the same way. The hybrid architecture radically changes these situations: theoretically, in order to attack the network, you must simultaneously own the power and money, which sounds impossible in an established currency. In addition to security, a huge advantage is the energy efficiency of such a currency: most of the transactions are carried out using PoS mining, which does not require spending on mining equipment and electricity: a regular wallet with coins running in the background is enough. The situation is similar in a pure PoS system: although it looks somewhat unlikely, if there is a person in a pure PoS system who has gained control over 51% of the money of the entire currency, then he can theoretically attack in the same way. The hybrid architecture radically changes these situations: theoretically, in order to attack the network, you must simultaneously own the power and money, which sounds impossible in an established currency. In addition to security, a huge advantage is the energy efficiency of such a currency: most of the transactions are carried out using PoS mining, which does not require spending on mining equipment and electricity: a regular wallet with coins running in the background is enough. The situation is similar in a pure PoS system: although it looks somewhat unlikely, if there is a person in a pure PoS system who has gained control over 51% of the money of the entire currency, then he can theoretically attack in the same way. The hybrid architecture radically changes these situations: theoretically, in order to attack the network, you must simultaneously own the power and money, which sounds impossible in an established currency. In addition to security, a huge advantage is the energy efficiency of such a currency: most of the transactions are carried out using PoS mining, which does not require spending on mining equipment and electricity: a regular wallet with coins running in the background is enough. then he theoretically can attack as well. The hybrid architecture radically changes these situations: theoretically, in order to attack the network, you must simultaneously own the power and money, which sounds impossible in an established currency. In addition to security, a huge advantage is the energy efficiency of such a currency: most of the transactions are carried out using PoS mining, which does not require spending on mining equipment and electricity: a regular wallet with coins running in the background is enough. then he theoretically can attack as well. The hybrid architecture radically changes these situations: theoretically, in order to attack the network, you must simultaneously own the power and money, which sounds impossible in an established currency. In addition to security, a huge advantage is the energy efficiency of such a currency: most of the transactions are carried out using PoS mining, which does not require spending on mining equipment and electricity: a regular wallet with coins running in the background is enough.
The self-regulation of Novacoin is thought out in such a way that mining in an established currency ceases to be a means of enriching the rich: the difficulty rises, and if it grows, then the block reward drops. Reward caps on top (currently 10 coins) create a leveling factor: 100 coins or 1000 input won't make more than 10 coins at a time. In general, the system is not as simple and stupid as described in the comment above. At the same time, there is no situation, as in bitcoin, when mining is really beneficial only for wealthy equipment manufacturers, the owner of pools and the owners of mining data centers that appear in China and Sweden.