Proof of Stake
In a post on twitter a few days ago by Charles Hoskinson (one of the lead developers at Cardano), it was announced that a secure Proof of Work algorithm is being successfully developed on the Cardano. The main benefit of a Proof of Stake algorithm over Proof of Work is that it requires less computing power and thus less energy consumption. Though in the past it has not been widely accepted as there were some security concerns.
The paper that has now been published has been called a breakthrough by Hoskinson. Proof of Stake essentially rewards owners of a coin for holding (staking) their coins. By staking the coins the network is secured as no one ever owns the majority of coins on the network.
To learn more watch the video on the Cardano Proof Of Stake algorithm called Ouroboros.
(By IOHK)
