Proof-of-stake

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Proof-of-stake is a method of securing a cryptocurrency network and achieving distributed consensus through requesting users to show ownership of a certain amount of currency. It is different from proof-of-work systems that run difficult hashing algorithms to validate electronic transactions. Peercoin was the first cryptocurrency to launch using Proof-of-Stake.

Peercoin proof-of-stake diagram for protocol v0.4

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FAQ

When a person with large computing power and a person with a large stake both compete to generate a new block who wins?
PoS wins, detailed answer here.

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