How Does Proof-of-Stake (PoS) Achieve Data Integrity without PoW’s Mining?
Proof-of-Stake (PoS) achieves data integrity through a process called 'attestation' or 'validation,' not competitive mining. Validators are chosen to propose and attest to new blocks based on the amount of cryptocurrency they have staked.
Data integrity is enforced through economic penalties (slashing) for validators who propose invalid blocks or attest to conflicting chains. The staked capital acts as collateral, providing a financial incentive for honest behavior and securing the Merkle Root integrity.
Glossar
Economic Penalties
Sanction ⎊ Economic penalties, within cryptocurrency, options, and derivatives markets, represent a multifaceted consequence arising from breaches of regulatory stipulations, exchange rules, or contractual obligations.
Data Integrity
Provenance ⎊ Data integrity within cryptocurrency, options trading, and financial derivatives fundamentally relies on establishing an immutable provenance for each transaction and data point.
Staked Capital
Commitment ⎊ : This represents the capital locked within a Proof-of-Stake protocol to gain validation rights and secure network consensus.
Integrity
Data ⎊ Data integrity is the assurance that market information, particularly asset pricing feeds from oracles and trade execution records, remains accurate, consistent, and unaltered throughout its lifecycle.