Hi everyone!
I feel like I have a pretty firm grasp of
Proof-of-Work (POW) and am trying to understand
Proof-of-Stake (POS) to the same degree.
Boiling down both of these different types of validations, I feel like it is fair to say:
- With POW, security is predicated on the incentive to work for the system (as honest nodes). Aka "The race to reward"
- With POS security is predicated on the disincentive to work against the system (as dishonest nodes).
What I'm wondering about
POS is:
What is the incentive in POS to work for the system as an honest node
and lock up a signifiant amount of native funds (for 30 or more days potentially) in hopes of being selected as a validator sometime in the (near?) future?
Thanks in advance for any guidance on this question.
If you reffer to crypto coins then the PoS altgorithm is giving rewards, new coin every day depending how many coins you hold on wallet and the coins are not locked for 30 days and you can use all coins when you want.