Proof-of-Stake (vs. Proof-of-work)

Cryptocurrencies like Bitcoin and Ethereum uses enormous amounts of energy. That's because of the proof-of-work algorithm. In this video I'll explain how the proof-of-stake algorithm works. An alternative consensus algorithm that uses a lot less energy!

Sources

Hern, A. (2018, January 17). Bitcoin’s energy usage is huge – we can't afford to ignore it. The Guardian. Retrieved from https://www.theguardian.com/technology/2018/jan/17/bitcoin-electricity-usage-huge-climate-cryptocurrency

Proof-of-stake. Wikipedia. Retrieved from https://en.wikipedia.org/wiki/Proof-of-stake

Back, A., & others. (2002). Hashcash-a denial of service counter-measure. Retrieved from http://www.hashcash.org/hashcash.pdf

Jakobsson, M., & Juels, A. (1999). Proofs of Work and Bread Pudding Protocols. In Proceedings of the IFIP TC6/TC11 Joint Working Conference on Secure Information Networks: Communications and Multimedia Security (pp. 258–272). Deventer, The Netherlands, The Netherlands: Kluwer, B.V. Retrieved from http://dl.acm.org/citation.cfm?id=647800.757199

Proof of Stake. Retrieved from https://lisk.io/academy/blockchain-basics/how-does-blockchain-work/proof-of-stake

QuantumMechanic. (2011). Proof of stake instead of proof of work. Retrieved from https://bitcointalk.org/index.php?topic=27787.0

The Inevitable Failure of Proof-of-Stake Blockchains and Why a New Algorithm is Needed (Op-Ed). (2015). Retrieved from https://cointelegraph.com/news/the-inevitable-failure-of-proof-of-stake-blockchains-and-why-a-new-algorithm-is-needed

Proof of Stake FAQ. Retrieved from https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ

Will a higher stake make more money in PoS? (2017). Retrieved from https://ethereum.stackexchange.com/questions/11182/will-a-higher-stake-make-more-money-in-pos

Hertig, A. (2017). Where's Casper? Inside Ethereum's Race to Reinvent its Blockchain. Retrieved from https://www.coindesk.com/ethereum-casper-proof-stake-rewrite-rules-blockchain/

Cryptocurrency Mining Farm. (2014). Retrieved from https://commons.wikimedia.org/wiki/File:Cryptocurrency_Mining_Farm.jpg

Economies of scale. (2017). Retrieved from https://commons.wikimedia.org/wiki/File:Economies_of_scale.svg

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