What is Proof of Stake (POS)?
The Proof of Stake consensus mechanism was created by Sunny King and Scott Nadal in 2012. To answer what is POS, we must first know why there was a need for POS. Proof of Stake attempts in optimizing most of the major limitations found in the Proof of Work mechanism. POS doesn’t require heavy machinery to create and validate blocks.
POS is considered eco-friendly as its energy consumption is much less than that of POW consensus. For this reason, the coins use the POS consensus are considered ‘Green Coins.’ POS also gave rise to staking in crypto where one can stake or delegate a coin to gain rights to validation and governance on the network. The nodes responsible for creating, adding and validating blocks on the network are called ‘Stakers’ within the network. Beldex will transition to a full POS network soon.
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