Pure Proof-of-Stake

It is a derivative of the Proof-of-Stake consensus mechanism. The first blockchain to process and use Pure Proof-of-Stake is Algorand. In order to participate in block validation it is sufficient to have 1 ALGO in staking. The entry requirements are therefore very low and in this way many people can participate, any user of the Algorand network can be selected as a validator randomly and anonymously. The selection is done by means of the VRF (verifiable random function) developed by founder Silvio Micali, which randomly chooses validators but taking into account their stake size. In fact in Pure Proof-of-Stake the probability of being chosen is open to all but is directly proportional to the size of the stake. When a node is selected, nobody but them knows about it. Anonymity preserves from corruption, since if nobody knows the identity of the selected block, nobody can try to compromise it. 

Validating a block requires several steps and the combined work of several users. Initially a validation leader is selected out of all the ALGO owners, to propose the addition of the block; then the block is passed under the control of a committee of randomly selected users. The committee ensures that there are no problems with the transactions contained in the block (e.g. double spending). A second committee is appointed to confirm the block. If there are problems with a block, it is discarded and a new leader is elected. In Pure Proof-of-Stake there are no punishment mechanisms for blocks that do not do their job properly, in these cases the network discards the validator and starts working again without interruption. Pure Proof-of-Stake does not involve slashing but focuses on fast processing of transactions by resolving errors quickly. 

Correlated words

Metaverse

Digital platform in which users take part in shared experiences, immersed in an online virtual environment, sometimes based on blockchain

Delegated Proof-of-Stake

A variant of Proof-of-Stake in which the stake is transferred to delegates who act as validators. 

Liquid Proof-of-Stake

Proof-of-Stake variant in which tokens are not staked but liquid.

Stake

Total amount of cryptocurrency being staked

Staking Pool

The joint staking of several people's cryptocurrencies with the aim to increase the rewards

Cold Staking

Type of staking that requires the use of a cold wallet

Blockchain

A technology based on cryptography that enables decentralised and uncensored execution of any type of transaction.

Proof-of-Stake

A consensus mechanism based on putting cryptocurrencies at stake in order to contribute to the blockchain.

Genesis Block

This is the first block of a blockchain, sometimes referred to as block 0.

Block Height

The number of blocks in a blockchain starting from the genesis block.

Network

The set of interconnected computers, called nodes, on which the blockchain of a given cryptocurrency is based.

Transactions per second (TPS)

Literally 'transactions per second', it is a measure of the speed of a blockchain.

Transaction

Exchange of value, property or data between two parties.

Shard

Fragments' of blockchain operating in parallel.

Proof-of-Work

A consensus mechanism based on computational power to contribute to the blockchain.

Node

Device connected to a blockchain and participating in its network.

Off-chain

Transaction that is not performed on the blockchain.

On-chain

Any process performed on the blockchain.

Mining Pool

A company that bases its business on mining, by collecting a large number of powerful mining devices.

Mining

The process of adding new blocks to the blockchain and creating new bitcoins by miners.

Consensus Mechanism

A decentralised way to validate transactions on blockchain.

Hash

A cryptographic function that serves to identify each block of the blockchain.

Governance

In the cryptocurrency sector, it indicates the way and rules by which projects and blockchains are governed.

Fee

Commission paid for the execution of transactions.

Double Spending

The possibility for an attacker to spend the same amount twice if the payment system does not have a mechanism to prevent this.

DoS

A Denial of Service is a computer attack that aims to make a network or service inaccessible.

DLT

Distributed Ledger Technologies are technologies based on an immutable ledger of transactions, the control of which is distributed.

Decentralised

It is said of a system governed by the consensus of its participants and without a central authority or hierarchy.

Cold Wallet

Wallets that are not connected to the internet.

Bridge

In blockchain technology, it is a connection that allows interaction between different blockchains.

Financial Bubble

Increase in the value of an asset, in an excessive way, given its intrinsic value.

Block Explorer

It allows you to consult any transaction made on a blockchain online

Block

The set of encrypted transactions that, connected to other blocks, makes up a blockchain.

ASIC

Devices dedicated to mining certain cryptocurrencies.

Interoperability

The ability to exchange data with other platforms, including those based on different types of blockchain, as well as with the off-chain world.

51% Attack

When a node or group of nodes attempts to take control of the blockchain.

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