What Is a Common Alternative Consensus Model Designed to Be Highly Energy Efficient?
Proof-of-Stake (PoS) is the most common alternative consensus model known for its high energy efficiency. Unlike Proof-of-Work, which requires vast computational power, PoS relies on validators staking their coins as collateral to participate in block creation and validation.
Since validators are chosen based on their stake rather than computational effort, the energy cost is dramatically lower, often only consuming negligible electricity.
Glossar
Alternative Consensus
Concept ⎊ An Alternative Consensus refers to a non-standard or emergent agreement mechanism within a decentralized network, diverging from the primary protocol's established validation structure, often explored in the context of scaling solutions or specialized blockchain applications relevant to derivatives settlement.
Alternative Consensus Model
Calibration ⎊ Alternative Consensus Models within cryptocurrency, options trading, and financial derivatives represent a departure from traditional proof-of-work or proof-of-stake mechanisms, focusing on dynamic adjustments to network parameters based on real-time market conditions and participant behavior.
Energy Cost
Expenditure ⎊ Energy cost represents the primary operational expenditure for Proof-of-Work cryptocurrency miners, quantified by the electricity consumed per unit of computational power, or hash rate.