PROOF-OF-STAKE- WHAT IS IT?

So yesterday we discussed the rebound in the cryptocurrency market as well as the Celcius bankruptcy. I was reading up about the bankruptcy and saw that It will likely still take some time for the positions that Celsius Network built up to be liquidated, but there's a path forward now. I feel like this could reduce the leverage in the crypto market overall, but I also feel that this will be a temporary move. At least we know that creditors and investors will be reimbursed. Thank you God.🙏🏿

Let’s continue what we started last week talking about ETHEREUM: So we now know that ETH is being converted to ETH2 (both prices are identical) and that a merge is coming. To understand the merge we have to understand the phrase PROOF OF STAKE.

Proof-of-stake in Sherma’s language (lol!) is a new method that will be used for the processing of cryptocurrency transactions and creating new blocks in a blockchain. To do this, a consensus mechanism will be used. A consensus mechanism is a way to validate entries into a distributed database with the ability to keep the database secure.

In my opinion, if Ethereum can complete the move to proof-of-stake and reduce costs, then that could be a game changer. Lowering costs would definitely increase the number of use cases available. 

The purpose of the ETH merge is for the purpose of shifting the Ethereum blockchain from the current proof of work (PoW) consensus mechanism to a proof-of-stake (PoS) model. Proof-of-Stake is intended to be faster and more energy efficient. Ethereum is the second-largest blockchain, so shifting it from one system to another is “an incredibly complex, multi-step process and it is important that each decision be assessed thoroughly,” according to Coindesk dot com.

Tomorrow we’ll get into Proof-of-Work and the difference between that and Proof-of-Stake. Thank you for reading!

Copyright ©2022 Sherma Jacqueline Felix, BLACK ADVANTAGE Publishing™ . The author shall neither be liable nor responsible for any loss or damage allegedly arising from any information or suggestions in this post.