Proof of Stake

A type of work function used in blockchain consensus algorithms that involves network participants staking an amount of a cryptoasset which grants them a probabilistic chance to confirm a block (and receive block award) in proportion to the amount of assets they stake.

Proof of stake has been criticized for being intentionally plutocratic and a scheme that overtly enriches those with existing wealth and early investors in the scheme, thus resulting in consolidation of the crypto asset into the hands of the few. Proof of stake has also been critized for having a less censorship resistent security model as it may encourage collusion and cartels.

See also mining, proof of work, environmental footprint of crypto.

References

1. Rosenthal, David. n.d. ‘Stanford Lecture on Cryptocurrency’. Accessed 2 March 2022. https://blog.dshr.org/2022/02/ee380-talk.html.
2. Plant, Luke. 2022. ‘The Technological Case against Bitcoin and Blockchain’. Luke Plant’s Home Page. 5 March 2022. https://lukeplant.me.uk/blog/posts/the-technological-case-against-bitcoin-and-blockchain/.
3. Weaver, Nicholas. 2018. Blockchains and Cryptocurrencies: Burn It With Fire. Berkeley School of Information. https://www.youtube.com/watch?v=xCHab0dNnj4.
4. Schneier, Bruce. 2019. ‘There’s No Good Reason to Trust Blockchain Technology’. Wired Magazine. https://www.wired.com/story/theres-no-good-reason-to-trust-blockchain-technology/.