This article is the second in my series about consensus algorithms, in which I leverage my unique perspective to help the reader gain a deeper understanding of this often misunderstood concept. In the first article in the series, I explored proof-of-work (the OG consensus algorithm) and, in this article, I’ll be exploring proof-of-stake.
As I explained in the last article, from a game theoretical perspective, blockchains are a game in which players compete to validate transactions by grouping them into blocks that match the blocks of transactions being created by other players. Cryptography is used to hide the data that would allow these people to cheat, and then a random process is used to distribute digital tokens to people who play by the rules and produce blocks that match the blocks submitted by other people. These blocks are then chained together to create a verifiable record of all the transactions that were ever performed on the network.
When people produce new blocks with different transactions in them, we call this a “fork,” because the chain is now forking off into two different directions, and what ensures that everyone updates their database to match one another is how they are punished when they do not.
Continue reading: https://cointelegraph.com/news/inside-the-blockchain-developer-s-mind-proof-of-stake-blockchain-consensus
As I explained in the last article, from a game theoretical perspective, blockchains are a game in which players compete to validate transactions by grouping them into blocks that match the blocks of transactions being created by other players. Cryptography is used to hide the data that would allow these people to cheat, and then a random process is used to distribute digital tokens to people who play by the rules and produce blocks that match the blocks submitted by other people. These blocks are then chained together to create a verifiable record of all the transactions that were ever performed on the network.
When people produce new blocks with different transactions in them, we call this a “fork,” because the chain is now forking off into two different directions, and what ensures that everyone updates their database to match one another is how they are punished when they do not.
Continue reading: https://cointelegraph.com/news/inside-the-blockchain-developer-s-mind-proof-of-stake-blockchain-consensus
