Proof-of-Stake is the next revolution of blockchain consensus mechanisms. It improves several of the key issues of the currently dominating Proof-of-Work consensus mechanism. In simple terms, Proof-of-Stake is a new standard (consensus algorithm) for running the decentralized blockchain infrastructure. It is a set of rules according to which the distribution of responsibilities for validating and recording transactions on the blockchain occurs and rewards are allocated. Different Proof-of-Stake have slightly different set of rules, but in its core they are all about two questions:
- • Who receives the right to validate and record transactions?
- • What are the rewards for miners (operators) for validating and recording transactions