Crypto 101: What Exactly Is Proof of Stake and Why Is Everyone Talking About It?
The cryptocurrency industry is talking a lot about proof of stake, and for good reason. Ethereum (CRYPTO: ETH), the second-largest crypto by market cap, is moving to a proof-of-stake consensus mechanism -- an alternative to Bitcoin's (CRYPTO: BTC) proof-of-work blockchain management method. Some crypto investors are optimistic that Ethereum's "merge" to proof of stake will help increase the adoption of blockchain technology.
But what exactly is proof of stake in cryptocurrency? Here's what you need to know.
As a quick refresher, blockchain is a digital ledger of past transactions that have taken place on a network. This digital ledger (a piece of software) is distributed to validator nodes -- computers used to verify transactions taking place on the blockchain network.
Source Fool.com
