The new consensus mechanism adopted by the crypto is yet to be fully tested for resilience and hidden vulnerabilities.
ETHEREUM, THE SECOND-LARGEST cryptocurrency with 17.7% market share, successfully shifted from proof-of-work (POW) to proof-of-stake (POS) consensus mechanism on September 15. In POW, miners solve increasingly complex series of mathematical problems. Based on their problem-solving skill, they get authority to create blocks in the blockchain, submit to the network and earn rewards. In POS, there is no mathematical problem. Instead, one has to stake coins, and the holder who has more Ethereum gets authority to alter the ledger. “It is like a capitalist model where the richer/bigger entity gets to validate transactions,” says Kumar Gaurav, founder and CEO of Cashaa, a blockchain-based fintech.
In POS, if one turns out to be a bad actor, as a punishment, he or she may lose a heavy amount or coins put on stake. One needs a very good reason to make alterations in...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...