What is Proof of Stake - Explained in Detail (Animation)

Learn all about Proof of Stake in this animated masterclass that explains the concept in detail.

00:00 Intro
00:13 What are Consensus Mechanisms?
Proof of Work and Proof of Stake are both “consensus mechanisms,” which are methods for maintaining the integrity of a blockchain.

Consensus is what solves the problem of "double-spending." If a cryptocurrency trader could spend coins more than once, the entire system would be jeopardized and susceptible to theft.

00:52 Proof of Stake
Proof of Stake is similar to Proof of Work: both are used to attain consensus and keep the underlying blockchain secure. But there is one important difference: Proof of Stake requires far less work to validate data blocks and thus requires less energy.

In Proof of Stake, there is no race amongst the nodes to validate a transaction.

Instead, they now take part in a “lucky draw” whose winner is decided by the blockchain itself. The winner then validates the transaction and gets a much smaller reward for having consumed much lesser electricity.

02:02 How Proof of Stake Consensus Works: The Details
The Proof Of Stake method selects a node to be the validator of the next block using a pseudo-random election process based on a combination of parameters such as staking age, randomization, and the node's wealth.

As the Proof of Stake name implies, nodes on a network stake a certain amount of cryptocurrency in order to become candidates for validating new blocks and earning the fee associated with them.

04:39 Security of Proof of Stake
The stake in Proof of Stake acts as a financial incentive for the forger node to avoid validating or initiating fraudulent transactions.

05:25 Features of Proof of Stake
-Fixed Number of Coins:
-Transaction Fees as rewards
-Impractical 51% attack

06:34 Advantages of Proof of Stake
-Energy-efficient
-Truly decentralized

07:15 Disadvantages of Proof of Stake
-Oligopoly with validators
-The Nothing at stake problem

#proofofstake #masterclass #slance

[anirvangoswami]

Man, I can't even imagine that a channel with 1.11k subscribers and no fancy clickbait has by far the best video on youtube on this topic. All you need to do with this level of skill and animation is to launch a full-fledged course on blockchain. Subscribed, shared and thanks for the content.

[muskymetal]

Excellent video my friend. Cant believe you only have 1.4k subs. The quality is incredibly high! (Subscribed)

[BigYoshi]

But how do the other nodes check if the validator cheated? What does it look like for the validator to attempt to cheat? How does the system take the stake away if found guilty? How does the swarm agree that a validator is guilty? So stakes have to be more than the value of all the coins being transacted in that block?

[anthonyriseley]

PoW mining pools aren’t actually centralising. When I mine bitcoin with my own ASICs I can point that hash rate to any pool. If I want to change pools it takes a minute or so. A mining pool is just another type of node. Any corrupted mining pools will have hashrate redirected pretty quickly.

[investedinlife]

Easily the best video I’ve seen explaining PoS

[KevinKentor]

Very good production! Now I am more prepared to explore this technology

[greysub]

Best explaination of proof of stakes. TQ

[abdulkareemabid]

bro great explanation tomorow is my BCT exam, It helps a lot thanks

[andresferreira]

Excellente content, and well explained, this channel will be huge, just give it time and patience like every new project! keep working

[vutifjtigoinj]

Really good video. I just came here to find answer for my question, in proof of stake where are the hardware that computes the transactions. is there a serverpark at the teams hands or the validators have them?

[belina]

I don't understand how it works in the case of e.g. blockchain wholesale trade in spare parts or container sea transport, everywhere it's just about coins. How is it? Fraudulent lose some brake pads?

[littlematt]

The answer is NO - Proof of stake is NOT better …

[ravendonly]

nice piece of detailed information bro

[averagedudeusa]

I watched this a second time and it makes more since now. Thank you. I’m wondering why can’t AI verify each transaction instead of a node ran by a human? They can program it not to cheat or steal and reduce the impact on the power grid by assigning scattered lower power using computers that are dedicated to the coin. I don’t buy crypto because the fees are too high to make it worth having. If fees were close to zero it would be more attractive to average people. I’m just a dummy though. Just looking for an explanation. Thanks again

[annazardecka]

The only thing i dont understand is the problem of nothing at stake if anyone can explain then please do

[AyeshaMaqsood-kxyq]

99 Bitcoins needs hype. Partnerships and promotions are key 🚀📈

[GCOMradio_Lyfeblood]

PoS is interesting but I’m concerned that we’re sacrificing energy usage for privileged validators taking a hold because they can afford to enter the “contest”. It creates a “class” system that awards the ones with a bigger stake in the system. Curious….

[JakubSK]

Creating money for free is ridiculous, complete nonsense. It should be difficult to create value in order to make it valuable. Simple science.

[tomfoolery]

Fantastic video succinctly saying what others take a long time to cover or don't cover at all. However i am still looking for a more technical explanation in video form. Even things like the Berkley class videos seem very surface level, so i guess im letting you guys know there is at least one person in the market for a deeper more technical kind of thing. Learnmeabitcoin does the best job I've found but they stopped posting and only has bitcoin videos nothing PoS.

[mariokart]

Proof of Stake is simply that the rich get richer🙌🤮