What is “Proof Of Stake”? - Crypto in Plain English – Episode 20 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it25 Okt 2021

What is “Proof Of Stake”? - Crypto in Plain English – Episode 20 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Last time, we explained how time-consuming puzzles are one way to solve the problem of cheating on the blockchain. That was called “proof of work”.

Today, we talk about “Proof of stake”, the other way that crypto technologies solve fraud.

Remember: Multiple computers on a blockchain validate one transaction, and if they agree, the transaction gets approved. But that also means: in theory, it would be easy to spin up thousands of fake validators and take over a network.

So how DO you make sure you trust the computers in the network? With “proof of stake” that simply happens by trusting those who actually own a lot of the token itself.

That’s like trusting a veterinarian who has 5 dogs, and not trusting another who doesn’t have any.

This makes cheating very expensive, because you’d have to hold a large portion of tokens to do so. And even if you try, other validators still have to agree with your results of the transaction, making it almost impossible for you to trick the system because they will see that your numbers are different. And to deter you even more, in many blockchains, you may lose some of your tokens if you produce wrong results.

And next time, we talk about the pros and cons of “Proof of work” and “proof of stake”.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

Episoder(373)

Why is the European Union trying to ban Bitcoin and Ethereum? - Crypto in Plain English - Episode 141 - by cryptohunt.it

Why is the European Union trying to ban Bitcoin and Ethereum? - Crypto in Plain English - Episode 141 - by cryptohunt.it

Why is the European Union trying to ban Bitcoin and Ethereum? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about a recently prop...

12 Apr 20221min

What is Biden's Executive Order on Crypto about? - Crypto in Plain English - Episode 140 - by cryptohunt.it

What is Biden's Executive Order on Crypto about? - Crypto in Plain English - Episode 140 - by cryptohunt.it

What is Biden's Executive Order on Crypto about? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let's take a deeper look into US President Bi...

11 Apr 20222min

What is a Consensus Mechanism in blockchains? - Crypto in Plain English - Episode 139 - by cryptohunt.it

What is a Consensus Mechanism in blockchains? - Crypto in Plain English - Episode 139 - by cryptohunt.it

What is a Consensus Mechanism in blockchains? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let's talk about consensus mechanisms in blockch...

8 Apr 20221min

What is a Store of Value? - Crypto in Plain English - Episode 138 - by cryptohunt.it

What is a Store of Value? - Crypto in Plain English - Episode 138 - by cryptohunt.it

What is a Store of Value? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. You've probably heard the term "store of value", which is usually used in r...

7 Apr 20221min

Why is a big Hedge Fund betting against a stable coin? - Crypto in Plain English - Episode 137 - by cryptohunt.it

Why is a big Hedge Fund betting against a stable coin? - Crypto in Plain English - Episode 137 - by cryptohunt.it

Why is a big Hedge Fund betting against a stable coin? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. A short seller called Fir Capital is making hu...

6 Apr 20221min

What is “Transactions per second” (TPS) and why does it matter? - Crypto in Plain English - Episode 136 - by cryptohunt.it

What is “Transactions per second” (TPS) and why does it matter? - Crypto in Plain English - Episode 136 - by cryptohunt.it

What is “Transactions per second” (TPS) and why does it matter? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let's look into one the most f...

5 Apr 20221min

What is a governance token? - Crypto in Plain English - Episode 135 - by cryptohunt.it

What is a governance token? - Crypto in Plain English - Episode 135 - by cryptohunt.it

What is a governance token? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. By now, you know that there are many different kinds of tokens: for examp...

4 Apr 20222min

What the meow are Cryptokitties? - Crypto in Plain English - Episode 134 - by cryptohunt.it

What the meow are Cryptokitties? - Crypto in Plain English - Episode 134 - by cryptohunt.it

What the meow are Cryptokitties? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: What the meow are Cryptokitties? CryptoKitties are one of the...

2 Apr 20221min

Populært innen Business og økonomi

stopp-verden
lydartikler-fra-aftenposten
dine-penger-pengeradet
rss-penger-polser-og-politikk
e24-podden
rss-borsmorgen-okonominyhetene
pengepodden-2
pengesnakk
tid-er-penger-en-podcast-med-peter-warren
finansredaksjonen
livet-pa-veien-med-jan-erik-larssen
utbytte
stormkast-med-valebrokk-stordalen
morgenkaffen-med-finansavisen
rss-sunn-okonomi
rss-markedspuls-2
lederpodden
liberal-halvtime
rss-pa-konto
rss-investering-gjort-enkelt