What is Proof of Stake (PoS) ?

Our last 🧵 looked at the original Nakamoto #consensus method that uses #ProofofWork - a trusted & robust method - but very time & energy consuming.

Enter #ProofofStake 1/ With #ProofofStake validators don’t race to solve #cryptographic puzzles (also known as #mining and the main reason #ProofofWork is so energy intensive).

Instead validators #stake their own #crypto assets in order to participate in consensus.

What is Proof of Work (PoW)?

Our last thread introduced the topic of #consensus mechanisms which determine how #data is added to the #blockchain

In this 🧵 we look at consensus mechanisms that use Proof of Work: 1/ A group of owls is called a Parliament.

And just as there are different ways to participate in a democracy (eg voting in a referendum vs electing a representative to decide on your behalf) - there are also different ways of participating in decision making on a #blockchain

What is a #consensus mechanism?

Quick 🦉 fact before we dive in..

Did you know that the collective noun for a group of owls is a ‘Parliament’?

This is a great starting point to understanding #consensus mechanisms on a #blockchain 1/ A #consensus mechanism on #blockchain is the process by which participants ‘agree’.

A bit like #voting in a #parliament.

This simple diagram describes the basic process: