Staking is a crucial part of “Proof-Of-Stake” (POS) blockchains like CSPR.
With a proof of stake blockchain, validators (like us at Ghost Staking) validate transactions on the network based upon the amount of tokens delegated to our node – and get rewarded for this work. This very different to a “Proof-Of-Work” blockchain which requires a lot of computational power by miners to solve complex problems to validate transactions.
The advantage of POS is that it doesn’t actively encourage large mining pools like in POW which is what miners trend to in order to ensure the work they have completed is rewarded; in POW, due to the hashrate, two miners could effectively be working on the same transaction for one piece of work to be disregarded (orphaned). This orphaning is not great for efficiency, scalability and speed and perhaps more importantly not great for the planet due to the high energy use.
POS also ensures that no single validator can grow large enough to act maliciously on the network, as this is penalised.
A lot of our readers may have heard or read the word ‘Byzantine’ or the phrase ‘Byzantine fault tolerance’ over and over again when researching Blockchain consensus. In fact we discuss the specifics within our deep dive into Casper CBC in the section entitled ‘Byzantine Fault Tolerence (BFT) and Guaranteed of common protocol future‘. So what exactly is ‘Byzantine’ and…
Hedera Hashgraph launched in 2018 with a unique hashgraph consensus mechanism which is unlike standard blockchain technology. The project has been marketed as ‘enterprise grade’ with a governing council of many well known, large and respected industry giants across a large variety of sectors. We shall review the Hashgraph consensus mechanism, drawing parallels with existing blockchain technologies and noting how…
As Cardano is ranked #4 in terms of market capitalization (~$70bn), by far the largest PoS network, we shall try to understand the reason for this valuation. We shall be inspecting both the protocol and adoption strategy and conclude why we believe Casper is stronger both in terms of longer term fundamentals, but also short term relative value. As we…
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