What is Proof of Stake PoS - Tokenview Block Explorer

what-is-posThe Ethereum network currently uses the proof of work (POW) algorithm and will be transitioning to using a proof of stake algorithm called Casper. Using the Tokenview ETH block explorer to view the ETH blockchain.

Proof of stake (PoS) is a consensus algorithm that requires each miner to own a stake in the native currency, ether in this case. It is worth noting that not all PoS protocols are the same, but are similar in regards to the basic concept. Proof of work (PoW) protocols, such as Bitcoin, reward mining effort (validations) with individual bitcoins. The Proof of Stake Casper algorithm is a smart contract, in which the miners—now referred to as “validators”—must send a deposit or “stake” to the Casper contract. The validators or stakers now take turns proposing and voting on the next block, each having one vote per block. The votes are also weighted by the amount of stake, so a validator who stakes 100 ETH will have a more meaningful vote than a validator who stakes 40 ETH. If these validators produce anything that the Casper protocol considers invalid, then the validators lose their stake, which incentivizes validators to follow consensus.