[source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fmedium.com%2Fcrypto-wisdom%2Fproof-of-stake-crypto-basics-for-all-part-2-3ddc84afbf9a&psig=AOvVaw1SJtGoxKC0STaqKqPG-ZJv&ust=1652361781015000&source=images&cd=vfe&ved=0CAwQjRxqFwoTCLCmz73F1_cCFQAAAAAdAAAAABAD)
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I am so happy to be participating in this week's crypto academy engagement challenge, it is truly an honor to be in the same community with such amazing people.
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> * Tell us about your favorite concept or term related to blockchain, try to be explanatory, and make sure to give your opinion. (For example Decentralized, Genesis Block, Hard Fork, Proof of Stake.)
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There are so many concepts related to blockchain technology and crypto that are very interesting and I will talk about one of them in this post. The blockchain concept that has got my attention is the Proof of Stake(PoS).
A consensus mechanism can be defined as an arrangement that requires the approval of many or all group members to be seen as valid. Proof of Stake is a blockchain consensus mechanism based upon the amount of native currency a holder has staked on the blockchain. Whenever transactions are made on a blockchain, a form of approval is required for the transaction process to be seen as valid. The proof of stake consensus mechanism is one that requires people with holdings of a currency to serve as validators for transactions on the blockchain. Validators are the ones who give their approval on a transaction before it is finally recorded on the public ledger of the blockchain.
The Proof of stake consensus mechanism is a unique one in so many ways and that helps it stand out among other consensus mechanisms. The validators in this mechanism are selected based on the criteria that they must have staked some amount of a coin on the blockchain. You only stand a chance of being selected as a validator if you have some amount staked.
In a consensus mechanism like Proof of work, what is required is electricity and so much computing power to become a validator. Only a few people can afford the requirements and as such the power and money revolve around a few rich and powerful users. On the contrary, the Proof of Stake consensus mechanism only requires that each validator stake some coins, no specific amount. For this reason, people with small holdings stand a chance of becoming validators and making a profit from it irrespective of who they are.
### Security
When it comes to how secure the proof of stake consensus mechanism is, some people often argue that a malicious group with enough stake can take over and manipulate the system. The proof of stake requires that 2/3 of the validators accept a transaction and it is good to go. This scares people. Although it may seem scary, a group that has that much control would not want to take unreasonable decisions that may hurt their interest. No one burns a bank where their money is.
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> * Why do you think it is important in the blockchain?
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The main aim of blockchain is decentralization and I think this is close to it. To remove power from the hands of a few and put it in the hands of many. Some of the reasons I think it is important are
* #### Equality for all stakes:
all users who have staked assets are basically equal. No one is bigger than the other as they all get randomly selected to become validators by the system.
* #### Easy validation process:
the validation process in proof of stake is relatively easy based on the fact that all user must not give their content for a transaction to be validated; it just requires an ok from 2/3 of the users present.
* #### Separation of power:
power is removed from the hands of the rich and spread out evenly.
* #### Low incentive to be unscrupulous:
when you know you have some of your holdings staked, the urge to do sneaky things goes away completely. No one wants to lose money.
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* > Do you think that the existence of the blockchain would be possible without this concept? Is there an alternative or similar term?
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There is an alternative to Proof of stake which is the Proof of Work consensus mechanism. The proof of work consensus mechanism is one that involves the use of computing power to serve as validators. In this, only people who can afford the necessary devices that can withstand the computational stress of validation are on top. Unlike proof of stake where validators are selected randomly based on stake.
So, about the possibility of existence. Without the proof of stake, the blockchain would still function effectively without much hassle but equity would be far-fetched. There are other consensus mechanisms that can stand in for proof of stake- proof of burn, proof of activity, proof of capacity, delegated proof of stake, and proof of elapsed time. There are other mechanisms that can stand in for proof of stake but may not be as good or as widely accepted as proof of stake.
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* > Do you think it is possible to improve this term in some way? Explain to us how
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Talking about the proof of stake consensus mechanism, a lot of people opine a lot of things. Some people have issues with security, while some people have issues with manipulation. The fact that the amount staked by each user is immaterial bothers some people. Irrespective of the amount you stake, you might not even be selected as a validator in some cases.
People feel manipulated because only 2/3 of the validators need to sign off for a transaction to be validated. In the opinion of others, it should be higher and I definitely agree with them on that. Because in that way 60% of the users can effectively control the blockchain. Proof of stake can become safer if people have more to lose because they become more conscious of their decisions.
It is very possible to make pos better because it consumes less energy relative to its peers and that gives it a head start. If the security and staking fears of people are met, there will be more incentive to use it and transactions will become faster and cheaper for all users.
#### Conclusion
Proof of stake relative to other consensus mechanisms seems to be the one that exhibits more inclusivity for all users, anyone with a substantial stake can become a validator and play an important role in the decision making and running of the blockchain. Pos trumps almost every other consensus mechanism around. I hope I have been able to make a point here today. Thank you all for reading and understanding my article.
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