You’re likely already familiar with the idea that blockchain is one of the most important tech innovations of the new millennium. The blockchain has provided the backbone for cryptocurrencies like Bitcoin and Ethereum, as well as many other tech-based innovations.
Of course, that doesn’t mean that the march of progress has stopped now. Quite the opposite: proof-of-stake is the new blockchain technology from Ethereum, and it’s going to change the way we think about the blockchain.
What do you need to know about this new and exciting tech innovation? Read on, and we’ll walk you through the details.
What is Proof-of-Stake?
The concept behind proof-of-stake is fairly technical. It helps to have some understanding of cryptocurrencies and the blockchain going into this subject.
As you may already know, cryptocurrencies are decentralized – which means they don’t rely on the control of any kind of larger financial institution to verify the exchanges and transactions made with them.
Instead, systems such as proof-of-stake or proof-of-work are used to validate and authenticate crypto-based transactions. These are complicated algorithms that allow users to add and record transactions on an unchangeable public ledger.
The main difference when it comes to proof-of-stake verification as opposed to other algorithms? It’s much more energy efficient.
Crypto in general, has often been criticized for the amount of energy required to manage even simple transactions and the emergence of proof of stake tech can help to lower the threshold for transaction management. Much less electrical energy will be expounded.
Implications of Proof-of-Stake Tech
What does this emergence of proof of stake mean for the larger world of technology and cryptocurrencies?
The main thing it likely means is the eventual end of ‘mining’ as we know it. Instead of the costly and expensive process of mining, verifications will be based on how long a user has held certain cryptocurrencies.
This may also prompt the Ethereum cryptocurrency to overtake Bitcoin as the most popular form of crypto. Of course, this is all just theorizing at this point, and it’s nothing to be certain of – but it’s something any crypto investor will want to keep their eyes on.
It’s anyone’s guess as to what bitcoin worth in 2030 will look like, but there’s a good chance that the increased reliance on proof-of-stake tech will play an impact on whatever that price becomes.
The Future of Blockchain Technology
Proof-of-stake is going to be something you’ll be hearing a lot about in the coming years, as the impact it will have on blockchain technology is going to be immense.
The above is just a basic primer of what you’ll want to know about this method of verifying blockchain transactions. They’ll be much more to get familiar with as this all unfolds in the coming years.
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Iskra Banović is our seasoned Editor-in-Chief at BlueFashion. She has been steering the website’s content and editorial direction since 2013. With a rich background in fashion design, Iskra’s expertise spans across fashion, interior design, beauty, lifestyle, travel, and culture.