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
- Diagram in HTML format (zoomable and clickable)
- Diagram in JPG format
- Diagram in SVG format
- Diagram in draw.io XML format
- 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.