{"id":10851,"date":"2023-07-07T14:27:28","date_gmt":"2023-07-07T14:27:28","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10851"},"modified":"2025-11-22T16:23:35","modified_gmt":"2025-11-22T16:23:35","slug":"what-is-proof-of-stake-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work","title":{"rendered":"Proof of Stake: what it is and how it works. Complete Guide 2026"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#history_and_evolution_of_proof_of_stake\" >History and evolution of Proof of Stake<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#emblematic_and_current_projects_with_pos\" >Emblematic and current projects with PoS<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#how_does_proof_of_stake_work\" >How does Proof of Stake work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#comparison_between_pos_and_pow\" >Comparison between PoS and PoW<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#advantages_of_proof_of_stake\" >Advantages of Proof of Stake<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#risks_and_disadvantages_of_pos\" >Risks and disadvantages of PoS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#trends_and_future_of_proof_of_stake_in_2025\" >Trends and future of Proof of Stake in 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#how_to_participate_and_stake_safely\" >How to participate and stake safely<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/#frequently_asked_questions_about_proof_of_stake\" >Frequently asked questions about Proof of Stake<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 9<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p><strong>Proof of Stake<\/strong>, is one of the two most used consensus <a href=\"https:\/\/academy.bit2me.com\/en\/que-es-proof-of-stake-pos\/\">protocols<\/a> in blockchain technology. Its name in English is\u00a0<strong>Proof of Stake<\/strong>, from which the acronym\u00a0<strong>PoS<\/strong>\u00a0is derived, by which it is known. The objective of this algorithm, as in PoW, is to create consensus among all the parties that make up the network.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-27740 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/1-compressed.jpg\" alt=\"\" width=\"768\" height=\"526\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/1-compressed.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/1-compressed-300x205.jpg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/p>\n<p>The nodes that work in PoS are called\u00a0<strong>validators<\/strong>. The decision about which node should validate a block is made randomly, but giving greater probability to those who meet a series of criteria. Among these criteria we can mention the amount of currency reserved and the time of participation in the network, but others can be defined.<\/p>\n<p>Once established, the process of selecting nodes randomly begins and when it ends, the chosen nodes will be able to validate transactions or create new blocks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"history_and_evolution_of_proof_of_stake\"><\/span><strong>History and evolution of Proof of Stake<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The\u00a0<strong>Proof of Stake<\/strong>\u00a0protocol was created by the renowned developer\u00a0<strong>Sunny King<\/strong>, in the year 2011. In 2012, King formally presented the\u00a0<strong>whitepaper<\/strong>\u00a0of\u00a0<strong>PPCoin<\/strong>, where he made clear how the\u00a0<strong>PoS<\/strong>\u00a0algorithm worked. The goal was to solve some known problems of the\u00a0<strong>PoW<\/strong>\u00a0protocol. Among them, the following stand out:<\/p>\n<ul>\n<li><strong>The lack of scalability and speed.<\/strong>The mining process (PoW) introduces high latency due to its complexity. On the other hand,\u00a0<strong>Proof of Stake (PoS)<\/strong>\u00a0avoids it, since validation is quickly performed by nodes with high coin holdings, which results in greater network speed and scalability.<\/li>\n<li><strong>The high energy consumption of the mining process.<\/strong>The mining process in PoW requires great computing power, which generally comes from machines with high electricity consumption.\u00a0<strong>PoS<\/strong>\u00a0changes the mining process for a participation process reflected in the holding of coins or in the time within the network.<br \/>\n<img decoding=\"async\" class=\"aligncenter wp-image-27743 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/2-compressed.jpg\" alt=\"\" width=\"768\" height=\"526\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/2-compressed.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/2-compressed-300x205.jpg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/li>\n<li><strong>The decentralization of the network.<\/strong>The main problem of PoW (Proof of Work) networks is the growing centralization, where large mining groups concentrate the power of the network in the hands of a few;\u00a0<strong>PoS (Proof of Stake)<\/strong>\u00a0seeks to remedy this, implementing a system that diversifies and democratizes access to participation in network tasks.<\/li>\n<li><strong>Remove financial interest from 51% attacks.<\/strong>In PoW networks, a 51% attack (manipulating the network with 51% of the computing power) is a constant risk. In\u00a0<strong>PoS<\/strong>, the same attack would require 51% of all coins, but the attacker would face a collapse in the value of the currency and large economic losses, which makes this cost a powerful deterrent to maintain security.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"emblematic_and_current_projects_with_pos\"><\/span><strong>Emblematic and current projects with PoS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The\u00a0<strong>Proof of Stake (PoS)<\/strong>\u00a0model has been adopted by numerous renowned blockchains, driving innovation and efficiency in the sector. Below, we highlight some of the most influential:<\/p>\n<ul>\n<li><strong>Peercoin:<\/strong>It was the first project to implement a hybrid PoW\/PoS model with the main objective of reducing energy consumption.<\/li>\n<li><strong>Dash and Zcash:<\/strong>They implemented the concept of\u00a0<strong>PoS<\/strong>\u00a0in their validation schemes, although with specific architectures.<\/li>\n<li><strong>Ethereum:<\/strong>After a long and detailed development process, Ethereum completed its transition from PoW to PoS with the update\u00a0<strong>\u00abThe Merge\u00bb<\/strong>\u00a0in September 2022.<\/li>\n<li><strong>Ethena (ENA):<\/strong>It is a new DeFi 2.0 project that stands out for its innovative staking model and the promise of high performance.<\/li>\n<li><strong>Stablecoins (e.g. USDT):<\/strong>Although they do not use PoS to secure their own chain, they offer stable rewards through staking or lending models, integrating into the PoS ecosystem.<\/li>\n<li><strong><a href=\"https:\/\/docs.cardano.org\/about-cardano\/new-to-cardano\/proof-of-stake\">Cardano<\/a><\/strong>is a pioneering blockchain in the use of\u00a0<strong>PoS<\/strong>, having developed its own protocol called\u00a0<strong>Ouroboros<\/strong>.<\/li>\n<li><strong>Solana<\/strong>uses a sophisticated model that combines\u00a0<strong>Proof of Stake (PoS)<\/strong>\u00a0with\u00a0<strong>Proof of History (PoH)<\/strong>. This combination allows Solana to achieve extremely high transaction speeds and low costs.<\/li>\n<li><strong>Polkadot<\/strong>employs a\u00a0<strong>PoS<\/strong>\u00a0consensus mechanism called\u00a0<strong>GRANDPA\/BABE<\/strong>. Its \u00abparachains\u00bb architecture allows multiple specialized blockchains (parachains) to run in parallel, connected to a main chain (Relay Chain).<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"how_does_proof_of_stake_work\"><\/span><strong>How does Proof of Stake work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The\u00a0<strong>Proof of Stake<\/strong>\u00a0algorithm uses a pseudo-random selection process to select validators from a group of nodes. The system uses a combination of factors, such as staking age, an element of randomness, and the node&#8217;s wealth.<\/p>\n<p>In\u00a0<strong>Proof of Stake<\/strong>\u00a0systems, blocks are \u00abforged\u00bb instead of being mined. However, it is possible that the term \u00abmining\u00bb is still occasionally used. Most\u00a0<strong>Proof of Stake<\/strong>\u00a0cryptocurrencies are launched with a supply of \u00abpre-forged\u00bb coins to allow nodes to start immediately.<\/p>\n<p>Users who participate in the forging process must lock a certain amount of coins in the network as their\u00a0<strong>stake<\/strong>. The size of the\u00a0<strong>stake<\/strong>\u00a0determines the probability of a node being selected as the next validator: the larger the\u00a0<strong>stake<\/strong>, the higher the probability. Unique methods are added to the selection process to avoid favoring only the richest nodes in the network.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"comparison_between_pos_and_pow\"><\/span><strong>Comparison between PoS and PoW<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Both consensus mechanisms help blockchains synchronize data, validate information, and process transactions. Each method has proven to be effective for maintaining a blockchain, although each has advantages and disadvantages. However, the two algorithms have very different approaches.<\/p>\n<p>In the\u00a0<strong>PoS<\/strong>\u00a0system, block creators are called\u00a0<strong>validators<\/strong>. A validator checks transactions, verifies activity, votes on outcomes, and maintains records. In the\u00a0<strong>PoW<\/strong>\u00a0system, block creators are called\u00a0<strong>miners<\/strong>. Miners work to solve a hash problem that verifies transactions. In return for solving it, they receive a cryptocurrency as a reward.<\/p>\n<p>To create a block in\u00a0<strong>PoS<\/strong>, you need to own enough coins or tokens to qualify as a validator. In contrast,\u00a0<strong>PoW<\/strong>\u00a0miners must invest in processing equipment and pay high energy costs to solve the calculations.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-27742 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/3-compressed.jpg\" alt=\"\" width=\"768\" height=\"526\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/3-compressed.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/3-compressed-300x205.jpg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/p>\n<p>The high equipment and energy costs in\u00a0<strong>PoW<\/strong>\u00a0limit access to mining and improve blockchain security.\u00a0<strong>PoS<\/strong>\u00a0blockchains require less processing power to validate blocks and transactions. This mechanism also reduces network congestion and eliminates the reward-based incentive inherent to PoW blockchains.<\/p>\n<table style=\"height: 189px\" width=\"1116\">\n<thead>\n<tr>\n<td>\n<p style=\"text-align: center\"><strong>PROOF OF STAKE<\/strong><\/p>\n<\/td>\n<td>\n<p style=\"text-align: center\"><strong>PROOF OF WORK<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Block creators are called\u00a0<strong>validators<\/strong>.<\/td>\n<td>Block creators are called\u00a0<strong>miners<\/strong>.<\/td>\n<\/tr>\n<tr>\n<td>Participants must own coins or tokens to become\u00a0<strong>validators<\/strong>.<\/td>\n<td>Participants must buy equipment and energy to become\u00a0<strong>miners<\/strong>.<\/td>\n<\/tr>\n<tr>\n<td><strong>Energy efficiency<\/strong><\/td>\n<td>Not energy efficient.<\/td>\n<\/tr>\n<tr>\n<td><strong>Security through community control<\/strong><\/td>\n<td>Robust security due to expensive initial requirements<\/td>\n<\/tr>\n<tr>\n<td><strong>Validators<\/strong>\u00a0receive transaction fees as a reward.<\/td>\n<td><strong>Miners<\/strong>\u00a0receive block rewards and fees.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"advantages_of_proof_of_stake\"><\/span><strong>Advantages of Proof of Stake<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-27744 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/4-compressed.jpg\" alt=\"\" width=\"1000\" height=\"450\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/4-compressed.jpg 1000w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/4-compressed-300x135.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/4-compressed-768x346.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p><strong>Proof of Stake<\/strong>\u00a0has many clear advantages over\u00a0<strong>Proof of Work<\/strong>. For this reason, new blockchains almost always use\u00a0<strong>Proof of Stake<\/strong>. Here are some of its advantages:<\/p>\n<ul>\n<li>As the needs of users and blockchains change,\u00a0<strong>Proof of Stake<\/strong>\u00a0can too. This is evident when looking at the large number of adaptations available. The mechanism is versatile and can easily adapt to most blockchain use cases.<\/li>\n<li>More users are encouraged to run nodes as it is more affordable. This incentive and the random allocation process also make the network more decentralized.<\/li>\n<li><strong>Energy efficiency.<\/strong><strong>Proof of Stake<\/strong>\u00a0is much more energy efficient than\u00a0<strong>Proof of Work<\/strong>. The cost of participation depends on the economic cost of staking coins, rather than the computational cost of solving puzzles. This mechanism leads to a significant reduction in the energy needed to run the consensus mechanism.<\/li>\n<li>Since\u00a0<strong>Proof of Stake<\/strong>\u00a0does not depend on physical machines to generate consensus, it is more scalable. Large mining farms or securing energy supplies are not necessary. Adding more validators to the network is cheaper, simpler, and more accessible.<\/li>\n<li><strong>Staking<\/strong>\u00a0acts as a financial motivation element to prevent the validator from processing fraudulent transactions. If the network detects a fraudulent transaction, the validator will lose a part of their\u00a0<strong>stake<\/strong>\u00a0and their right to participate in the future. As long as the\u00a0<strong>stake<\/strong>\u00a0is greater than the reward, the validator will lose more coins than they would gain through fraudulent activities.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"risks_and_disadvantages_of_pos\"><\/span><strong>Risks and disadvantages of PoS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the\u00a0<strong>PoS<\/strong>\u00a0consensus system, users generally must own cryptocurrencies before they can participate in the consensus and obtain more. To host a full validator node on\u00a0<strong>Ethereum<\/strong>, a user needs to deposit\u00a0<strong>32 ETH<\/strong>, which is very expensive. Another disadvantage of\u00a0<strong>PoS<\/strong>\u00a0is that, in blockchains with smaller networks, a high minimum deposit could lead to centralization.<\/p>\n<p>Although\u00a0<strong>Proof of Stake<\/strong>\u00a0has many advantages over\u00a0<strong>Proof of Work<\/strong>, it also has some weak points:<\/p>\n<ul>\n<li>In a standard\u00a0<strong>Proof of Stake<\/strong>\u00a0mechanism, there is no element that prevents mining on both sides of a fork. With\u00a0<strong>Proof of Work<\/strong>, mining both sides would lead to wasted energy. With\u00a0<strong>Proof of Stake<\/strong>, the cost is much lower, meaning people can \u00abstake\u00bb on both sides of a fork.<\/li>\n<li>To start staking, you need a supply of the blockchain&#8217;s native tokens. This forces you to buy the token through an exchange or another method. Depending on the amount needed, you may need to make a significant investment to start staking effectively. In the case of\u00a0<strong>Proof of Work<\/strong>, you can buy cheap mining equipment or even rent it. With such equipment you can join a pool and start validating and earning profits quickly.<\/li>\n<li><strong><a href=\"https:\/\/www.bitnovo.com\/blog\/que-es-un-ataque-del-51-por-cien-de-la-blockchain\">51% attack<\/a>.<\/strong>Although\u00a0<strong>Proof of Work<\/strong>\u00a0is also prone to 51% attacks, they can be significantly easier with\u00a0<strong>Proof of Stake<\/strong>. If the price of a token collapses or the blockchain has a low market capitalization, in theory it could be cheap to buy more than 50% of the tokens and control the network.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-27745 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/5-compressed.jpg\" alt=\"\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/5-compressed.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/5-compressed-300x169.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/5-compressed-768x432.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"trends_and_future_of_proof_of_stake_in_2025\"><\/span><strong>Trends and future of Proof of Stake in 2025<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The\u00a0<strong>Proof of Stake (PoS)<\/strong>\u00a0protocol is constantly evolving, with innovation focusing on optimizing validator selection and reward management. New algorithms and staking models are being explored to improve the distribution of participation and prevent centralization.<\/p>\n<p>Another crucial aspect is the improvement of security, with ongoing research to strengthen resistance against\u00a0<strong>slashing<\/strong>\u00a0attacks (penalization for malicious behavior) and guarantee the robustness of the code. The emergence of\u00a0<strong>\u00abliquid\u00bb PoS (liquid staking)<\/strong>\u00a0adds a layer of utility and liquidity, allowing users to use a representative token of their stake in other\u00a0<strong>DeFi<\/strong>\u00a0applications while it continues to generate rewards.<\/p>\n<p>Despite its advantages, challenges persist such as the high barrier to entry due to the initial stake, which is being addressed with delegated staking and pools. The key goal of the community remains to ensure that the\u00a0<strong>PoS<\/strong>\u00a0model promotes genuine decentralization and does not become a new form of power concentration, this time based on capital accumulation.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-27746 aligncenter\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/6-compressed-300x205.jpg\" alt=\"\" width=\"300\" height=\"205\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/6-compressed-300x205.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/6-compressed.jpg 768w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>The success and continuous improvement of\u00a0<strong>PoS<\/strong>\u00a0are vital for a future of more scalable and sustainable blockchains. As more networks adopt these mechanisms, a more efficient, accessible, and ecological blockchain ecosystem is expected.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_to_participate_and_stake_safely\"><\/span><strong>How to participate and stake safely<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To participate safely in\u00a0<strong>PoS<\/strong>\u00a0networks and generate passive income, follow these key steps:<\/p>\n<ol>\n<li><strong>Buy and lock the tokens (Stake)<\/strong><br \/>\nThe first step is to acquire the tokens of the cryptocurrency that uses\u00a0<strong>PoS<\/strong>and then \u00ablock\u00bb or \u00abdeposit\u00bb them in a compatible wallet or on the <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-cryptocurrency-staking\">staking<\/a> This locking process is what turns your coins into \u00abstake\u00bb and allows you to generate rewards.<\/li>\n<li><strong>Choose trusted validators or platforms<\/strong><br \/>\nThe security of your investment depends on where and with whom you stake. You must choose\u00a0<strong>validators, pools or staking brokers<\/strong>that have a solid reputation and a proven track record of good performance. Research their commission rate, their uptime history, and whether they have been subject to\u00a0<strong>slashing<\/strong> Avoid unknown platforms or validators that promise unrealistic returns.<\/li>\n<li><strong>Evaluate risks and know about \u00abSlashing\u00bb<\/strong><br \/>\nIt is essential to evaluate the risks. The most significant risk is\u00a0<strong>\u00abslashing\u00bb<\/strong>, a penalty where you lose a part of your tokens if the validator you chose acts maliciously or disconnects for a long time. Additionally, your tokens are usually \u00ablocked\u00bb for a period, meaning you will not be able to sell them immediately. Understanding these risks is crucial for making informed decisions.<\/li>\n<li><strong>Continuous education to avoid losses<\/strong><br \/>\nThe importance of knowledge and\u00a0<strong>education<\/strong>cannot be underestimated. Scams and configuration errors are common causes of losses. Never share your\u00a0<strong>private keys<\/strong>\u00a0and always use\u00a0<strong>hardware wallets<\/strong>\u00a0for large amounts. Stay updated on protocol changes and security best practices to mitigate any potential risk.<\/li>\n<li><strong>Generation of passive income<\/strong><br \/>\n<strong>Staking<\/strong>is a practical way to generate\u00a0<strong>passive income<\/strong>\u00a0through the rewards granted for securing the network. These rewards are paid in the same cryptocurrency that you have locked. In addition to direct staking,\u00a0<strong>\u00abliquid\u00bb PoS (liquid staking)<\/strong>\u00a0allows you to use a representative token of your stake in other\u00a0<strong>Decentralized Finance (DeFi)<\/strong>\u00a0applications such as loans or liquidity provision, maximizing the potential of your locked assets.<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-27747 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/7-compressed.jpg\" alt=\"\" width=\"1024\" height=\"701\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/7-compressed.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/7-compressed-300x205.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/7-compressed-768x526.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"frequently_asked_questions_about_proof_of_stake\"><\/span><strong>Frequently asked questions about Proof of Stake<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>What are the risks of staking with PoS?<\/strong>The risks of staking cryptocurrencies with\u00a0<strong>PoS<\/strong>\u00a0include lack of liquidity while your coins are in\u00a0<strong>staking<\/strong>, lack of regulatory practices with cryptocurrencies, price volatility, and the fact that you are not guaranteed to obtain future returns on the cryptocurrency you are putting in\u00a0<strong>staking<\/strong>.<\/li>\n<li><strong>How can I stake my cryptocurrencies with Proof of Stake?<\/strong>You can\u00a0<strong>stake<\/strong>\u00a0your cryptocurrencies on a\u00a0<strong>Proof of Stake<\/strong>\u00a0network by acquiring the native cryptocurrency of that blockchain and transferring your digital coins to the staking address. Compatible\u00a0<strong>cryptocurrency wallets<\/strong>\u00a0provide investors with access to the\u00a0<strong>staking<\/strong><\/li>\n<li><strong>What is the future of PoS?<\/strong>The future looks promising. Many cryptocurrency investors believe that a\u00a0<strong>PoS<\/strong>\u00a0network will become the dominant consensus mechanism for blockchain, as it requires much less energy and computing power than\u00a0<strong>PoW<\/strong> However, there is no guarantee that\u00a0<strong>PoS<\/strong>\u00a0will continue to gain popularity, since it is considered less secure than\u00a0<strong>PoW<\/strong>.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-27748 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/8-compressed.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/8-compressed.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/8-compressed-300x200.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2023\/07\/8-compressed-768x512.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>To conclude, the way we add blocks of transactions to a network has changed significantly since Bitcoin. It is no longer necessary to depend on computing power to generate cryptographic consensus. The\u00a0<strong>Proof of Stake<\/strong>\u00a0system has many advantages, and history has shown that it works. As time passes, Bitcoin will be one of the few remaining\u00a0<strong>Proof of Work<\/strong>\u00a0networks. For now, it seems that\u00a0<strong>Proof of Stake<\/strong>\u00a0is here to stay.<\/p>\n<p>Or as blockchain analyst\u00a0<strong>Juan P\u00e9rez<\/strong>\u00a0indicates: \u00abThe path towards a more scalable and sustainable future for blockchains is intrinsically linked to the success and continuous improvement of protocols like\u00a0<strong>Proof of Stake<\/strong>.\u00bb<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 9<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>Proof of Stake, is one of the two most used consensus protocols in blockchain technology. Its name in English is\u00a0Proof of Stake, from which the acronym\u00a0PoS\u00a0is derived, by which it is known. The objective of this algorithm, as in PoW, is to create consensus among all the parties that make up the network. The nodes [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-10851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10851"}],"version-history":[{"count":5,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10851\/revisions"}],"predecessor-version":[{"id":27781,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10851\/revisions\/27781"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/6953"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}