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)

What makes ZCash special? - Crypto in Plain English - Episode 117 - by cryptohunt.it

What makes ZCash special? - Crypto in Plain English - Episode 117 - by cryptohunt.it

What makes ZCash special? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. A common misperception about crypto is that all blockchains provide perfect...

9 Mar 20221min

What makes Monero special? - Crypto in Plain English - Episode 116 - by cryptohunt.it

What makes Monero special? - Crypto in Plain English - Episode 116 - by cryptohunt.it

What makes Monero special? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you’ve listened to our explanation of what a blockchain is, and remembe...

8 Mar 20222min

Can anyone see what’s in my crypto wallet? - Crypto in Plain English - Episode 115 - by cryptohunt.it

Can anyone see what’s in my crypto wallet? - Crypto in Plain English - Episode 115 - by cryptohunt.it

Can anyone see what’s in my crypto wallet? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. One of the features of blockchains is that all transaction...

7 Mar 20221min

What is Celo and what makes it special? (Part 2 of 2) - Crypto in Plain English - Episode 114 - by cryptohunt.it

What is Celo and what makes it special? (Part 2 of 2) - Crypto in Plain English - Episode 114 - by cryptohunt.it

What is Celo and what makes it special? (Part 2 of 2) Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, welcome to part two of our two part seri...

4 Mar 20222min

What is Celo and what makes it special? (Part 1 of 2) - Crypto in Plain English - Episode 113 - by cryptohunt.it

What is Celo and what makes it special? (Part 1 of 2) - Crypto in Plain English - Episode 113 - by cryptohunt.it

What is Celo and what makes it special? (Part 1 of 2) Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, welcome to part one of our two part seri...

3 Mar 20221min

Why crypto is great for donations - Crypto in Plain English - Episode 112 - by cryptohunt.it

Why crypto is great for donations - Crypto in Plain English - Episode 112 - by cryptohunt.it

Why crypto is great for donations Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. You may have seen the Ukrainian government tweeting out wallet addr...

2 Mar 20221min

Can you really trust stablecoins? - Crypto in Plain English - Episode 111 - by cryptohunt.it

Can you really trust stablecoins? - Crypto in Plain English - Episode 111 - by cryptohunt.it

Can you really trust stablecoins? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s take another look at stablecoins – and why you shouldn...

1 Mar 20221min

Is Tether as stable as they claim? - Crypto in Plain English - Episode 110 - by cryptohunt.it

Is Tether as stable as they claim? - Crypto in Plain English - Episode 110 - by cryptohunt.it

Is Tether as stable as they claim? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s take a critical look at Tether, the largest stablecoi...

28 Feb 20222min

Populært innen Business og økonomi

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