The third method that a blockchain might use for reaching consensus is the PoS algorithm or scheme. It is extremely similar to the PoW scheme discussed previously. The main difference between these algorithms is that with PoS, participation is restricted to the entities (individuals or organizations) that have a legitimate stake in the blockchain. An entity needs to have an asset or a smart contract (that is, a programmable asset that can execute code) saved in the blockchain. The blockchain can still be public, but the verification of new transactions and blocks is only done by these entities. The PoS algorithm replaces the calculation of the hash with a digital signature that proves the ownership of the stake. Instead of ...
Proof-of-stake
Get Blockchain across Oracle now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
