Proof of Stake (PoS) - Consensus - tokens-economy.gitbook.io  ## Metadata - Author: **tokens-economy.gitbook.io** - Full Title: Proof of Stake (PoS) - Consensus - Category: #articles - Tags: #epistemology #web3 - URL: https://tokens-economy.gitbook.io/consensus/chain-based-proof-of-stake/proof-of-stake-pos ## Highlights - The proof-of-stake (PoS) mechanism works using an algorithm that selects participants with the highest stakes as validators, assuming that the highest stakeholders are incentivized to ensure a transaction is processed. The idea is that those with the most coins in circulation have the most to lose so they are positioned to work in the interest of the network. The amount of coins that a network may require changes just like the difficulty in PoW.In PoS, the blocks aren’t created by miners doing work, but by minters staking their tokens to “bet” on which blocks are valid. In the case of a fork, minters spend their tokens voting on which fork to support. Assuming most people vote on the correct fork, validators who voted on the wrong fork would “lose their stake” in the correct one. The common argument against proof-of-stake is the Nothing at Stake problem. The concern is that since it costs validators almost no computational power to support a fork unlike PoW, validators could vote for both sides of every fork that happens. Forks in PoS could then be much more common than in PoW, which some people worry could harm the credibility of the currency. - Tags: #blue