Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure...
Transcript of Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure...
![Page 2: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/2.jpg)
Agenda
What is Proof of Stake?
How it works?
It’s importance to Ethereum
![Page 3: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/3.jpg)
What is a Consensus Algorithm?
In a distributed, trustless computing network…
… allows a collection of machines…
…to reach an agreement of facts.
![Page 4: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/4.jpg)
What is its purpose?
Allow the secure updating of a state according specific state rules
![Page 5: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/5.jpg)
Concensus Algorithms
Proof of Work
Proof of Stake
Proof of Activity
Proof of Capacity
![Page 6: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/6.jpg)
Consensus Mechanisms
https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/kpmg-blockchain-consensus-mechanism.pdf
![Page 7: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/7.jpg)
Consensus
![Page 8: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/8.jpg)
Proof of Work (PoW)
http://www.talkcrypto.org/blog/2016/07/27/going-pow-on-the-blockchain/
![Page 9: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/9.jpg)
Proof of Stake
The probability to create a block and receive a reward is proportional to a user’s stake in the system.
A stakeholder who has p fraction of the coins in circulation creates a new block with p probability
![Page 10: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/10.jpg)
Example
John = 3 blue tokens
Mary = 5 red tokens
Sally = 8 green tokens
![Page 11: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/11.jpg)
Don’t the rich get richer?
Coin age
stake x age
Reset of coin age
min & min period
![Page 13: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/13.jpg)
BenefitsNo large consumption of electricity
Reduced incentives for attack.
Reduced centralisation risk?
Could provide faster block generation times
![Page 14: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/14.jpg)
Implementation
Peercoin or PPCoin (peercoin.org)
Nxt (nxt.org)
BlackCoin (blackcoin.co)
Novacoin (novacoin.org)
![Page 15: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/15.jpg)
Ethereum
Does any one mine ETH?
Frontier -> Homestead -> Metropolis -> Serenity
Articles >1 yr ago. Casper
![Page 16: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/16.jpg)
Ethereum
https://souptacular.gitbooks.io/ethereum-tutorials-and-tips-by-hudson/content/proof-of-stake_resources.html
![Page 17: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/17.jpg)
Proof of Stake
https://www.youtube.com/watch?v=bSdwqa3Yl0Q
![Page 18: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/18.jpg)
Referenceshttp://bitfury.com/content/5-white-papers-research/pos-vs-pow-1.0.2.pdf
https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/kpmg-blockchain-consensus-mechanism.pdf
https://blog.ethereum.org/2015/12/28/understanding-serenity-part-2-casper/
http://ethereum.stackexchange.com/questions/9/why-does-ethereum-plan-to-move-to-proof-of-stake
![Page 19: Blockchain Concensus with Proof of Stake - Talk Crypto · What is its purpose? Allow the secure updating of a state according specific state rules](https://reader034.fdocuments.in/reader034/viewer/2022042302/5eccfbfc7d791301bb64d2a2/html5/thumbnails/19.jpg)
Summary
PoS is a consensus algorithm
Users put their stake in the system
Ethereum’s move to Casper in 2017