✅ From Mining to Staking: You've Made the Switch

Master PoS concepts and understand why Ethereum switched to this greener consensus

🎓 Key Takeaways

Congratulations! You've learned about Proof of Stake, a revolutionary consensus mechanism that secures blockchains through economic incentives rather than computational work.

🎯 What You've Learned

Energy Efficiency

PoS uses ~99.95% less energy than PoW by eliminating computational mining.

💰

Economic Security

Validators stake their own crypto as collateral, aligning financial incentives with network health.

🎲

Weighted Selection

Validators are chosen based on stake size, creating fair probabilistic selection.

⚠️

Slashing Mechanism

Malicious validators are punished by losing stake, deterring attacks.

🆚 PoW vs PoS Comparison

AspectProof of WorkProof of Stake
ResourceComputational PowerCryptocurrency Stake
Energy UseVery High (~100 TWh/year)Very Low (~0.01 TWh/year)
Entry BarrierExpensive hardware32 ETH (~$50k-100k)
Block Time~10 minutes (Bitcoin)~12 seconds (Ethereum)
51% Attack Cost51% hash rate51% of staked tokens (then slashed)
PenaltyWasted electricityStake slashing

🌍 Real-World Adoption

Ξ
Ethereum
September 2022

Transitioned from PoW to PoS, reducing energy consumption by 99.95% in "The Merge".

Cardano
Since 2017

Built with PoS from the ground up using the Ouroboros protocol, designed for sustainability.

Polkadot
Since 2020

Uses Nominated PoS (NPoS) where nominators back validators, spreading risk and rewards.

📝 Test Your Knowledge

1.What determines a validator's probability of being selected?
2.What is slashing in Proof of Stake?
3.What is the minimum stake required to be an Ethereum validator?

🔮 Looking Ahead

Future Developments

  • Sharding: Parallel chain processing for higher throughput
  • PBS: Proposer-Builder Separation to reduce MEV
  • DVT: Distributed Validator Technology for resilience

Open Questions

  • Long-term centralization risks from large staking pools
  • Optimal reward/penalty parameters for security
  • Balancing accessibility with decentralization