Proof of Stake
Revision as of 23:07, 10 March 2012 by Ripper234 (talk | contribs) (Created page with "{{stub}} Proof of Stake is a propose alternative mechanism to Proof of Work as a way to mine Bitcoin and sign transactions. It was probablly first proposed [https://bitco...")
This page is a stub. Help by expanding it.
Proof of Stake is a propose alternative mechanism to Proof of Work as a way to mine Bitcoin and sign transactions. It was probablly first proposed here by Quantum Mechanic. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that's compared is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin can mine 1% of the "Proof of Stake blocks".
Some argue that methods based on Proof of Work alone might lead to a low network security due to Tragedy of the Commons, and Proof of Stake is one way of changing the miner's incentives in favor of higher network security.
