Proof-of-Stake (vs proof-of-work)

Cryptocurrencies use a ton of electricity because of mining. In recent years people started working on a different technique called Proof-of-Stake. Not only does it use less energy, it can also be more secure.

(This video is a re-upload to fix a mistake I made in the previous one. Sorry about that!)

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[InvestBetter.]

2:40. Translation: POS is far more centralized, and corruptible, than POW, as the more stake you have in the network, the more "validation, " and control, you can take in the network. It removes the competitive aspect of POW, and replaces it with "Payola."

[AleksandrVasilenko]

The 51% attack for Proof of Stake was addressed incorrectly. You don’t need 51% of ALL currency you need 51% of all stakes. Actually, you might even need less if you game the selection process correctly. A successful attack on proof of stake can have malicious nodes validate their other malicious nodes, and if done long enough can sneak in malicious transactions before getting caught by which time it’s too late.

[ascendrio]

PoS centralizes more over time than PoW, because larger stakes get more rewards, therefore their size increases. PoW has its own downsides but it is more consensus proof.

[randomz]

Major misconception here, proof of stake with a select few validators isn't more decentralized than a proof of work consensus algorithm. This is the reason bitcoin remains the most decentralized blockchain in the world still in 2021.

[PrinceUlrich]

I know how difficult it is to turn complex into simple. And I really appreciate the effort you put on and sharing it with us. Kudos to you!😀

[thakopia]

The best and most simple explanation of the difference between Proof of work vs. Proof of stake that I have seen. Really great job Savjee, thank you so much!! :)

[Pikminiman]

I've been watching a bunch of videos explaining proof-of-stake, and this is the only one that actually contextualizes both PoS and PoW within how they interact with the blockchain.

[fuu]

Proof of stake in Cardano is amazing: anyone gains: you can delegate your money to small pools which are incentivized over bigger ones.

Every time a block is created the rewards are split across all participants, simply beautiful.

[jacobpeltz]

Thank you for putting in the time and effort to create these videos. I’m basically a caveman when it comes to computer science and tech literacy and you’ve really helped clarify a lot of abstract and complicated topics on your channel.
Liked and subscribed brother. Keep up the good work!

[adriankolodzik]

Thanks for the very concise explanation!

[LimitedWard]

Perhaps I missed it, but how does the network actually randomly select a validator? They all have to acheive consensus on who the validator is, right?

[aloysius]

I have a question. Cant validators come together and form 'validator' pools just like the mining pools we know about? Where fees are paid according to the security deposit that they have within

[marcandrer]

For the first time, I feel like I understand PoS. Every other explanation I got for it never actually mentioned that validators were actually doing some calculation work when they were chosen. Thank you!

[DoYouWantTaBeFree]

The centralization of mining pools isn't actual centralization because individual miners are free to leave any time. This is not a centralization threat. The power issue can't be viewed in a vacuum and one must consider the power that us not used because the transactions are happening elsewhere. There are places for both PoW and PoS. It's not as simple as this video makes it out to be.

[fedorinovsubdivision]

The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

[obamium_miner]

i am doing a research project on nfts, and this is by far the best video i've seen explaining PoS. Same goes for your other videos on blockchain and other stuff.
#1 channel for actually understanding all this blockchain crap
10/10

[Volition]

2:21 "One node is randomly chosen as a validator"
2:37 "Validators aren't chosen completely randomly"

[eraneran]

Proof of stake will:
1. Encourage hoarding (and hinder spending).
2. Monopolistic behavior.

Not sure I trust the masses anymore than I trust govt to limit monopolies and greed, which means, I see no answers to Bitcoin's "problems."

[PurnamaABC]

Great explanation, but nowadays, some coins allows staking pool. I agree that it may reduce electricity cost but doesn't necessarily solve the centralization problem from poolings.

[krozareq]

As an ETH miner I'm stoked about it. This could bring in a lot of diversity into crypto and subsequent liquidity. PoW will have a place because gigahashes of computational power doesn't just disappear. The PoW miners will help close the gap that currently exists between ETH and other cryptos. Fee payouts then can be moved into stakes, offering something other than price action volatility, which exacerbates that problem, for further investment. When ETH goes to PoS we can hedge on the liquidity of that network.