To keep their networks secure, blockchains reward people with cryptocurrency. There are various consensus mechanisms enabled to validate transactions on the blockchain. For example, Bitcoin uses a Proof of Work mining algorithm, while NEM has introduced a Proof of Importance system.
One additional alternative used by cryptocurrencies, such as Dash, Polkadot, Neo and Cardano, is the Proof of Stake mechanism, which is considered an energy-saving method to confirm cryptocurrency transactions.
In today’s SpectroCoin blog post, we are happy to clear up the confusion around the concept of “Proof of Stake” and share our thoughts about staking.