The State of Staking

The Proof-of-Stake (PoS) distributed consensus mechanism has emerged as a popular alternative to Proof-of-Work (PoW), which had been the primary mode of achieving consensus on the blockchain prior to PoS. Both consensus mechanisms have been successful in demonstrating their abilities to secure blockchains.

PoW secures a blockchain by necessitating significant computation power to mine new blocks. While such a method had proven effective in maintaining blockchain security, the high energy consumption and capital expenditure on mining equipment required had become a concern.