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Proof-of-Work (PoW) is the most widely adopted incentive model in current blockchain systems, which unfortunately is energy inefficient. Proof-of-Stake (PoS) is then proposed to tackle the energy issue. The rich-get-richer concern of PoS…

Cryptography and Security · Computer Science 2021-03-31 Yuming Huang , Jing Tang , Qianhao Cong , Andrew Lim , Jianliang Xu

Due to its minimal energy requirement the PoS consensus protocol has become an attractive alternative to PoW in modern cryptocurrencies. In this protocol the chance of being selected as a block proposer in each round is proportional to the…

Information Theory · Computer Science 2022-07-26 Zahra Naderi , Seyed Pooya Shariatpanahi , Behnam Bahrak

Proof of Stake (PoS) protocols rely on voting mechanisms to reach consensus on the current state. If an enhanced majority of staking nodes, also called validators, agree on a proposed block, then this block is appended to the blockchain.…

Computer Science and Game Theory · Computer Science 2021-07-20 Stefanos Leonardos , Daniel Reijsbergen , Georgios Piliouras

Proof-of-stake blockchain protocols have emerged as a compelling paradigm for organizing distributed ledger systems. In proof-of-stake (PoS), a subset of stakeholders participate in validating a growing ledger of transactions. For the…

Computer Science and Game Theory · Computer Science 2024-07-12 Aggelos Kiayias , Elias Koutsoupias , Francisco Marmolejo-Cossio , Aikaterini-Panagiota Stouka

With the increasing adoption of the Proof of Stake (PoS) blockchain, it is timely to study the economy created by such blockchain. In this chapter, we will survey recent progress on the trading and wealth evolution in a cryptocurrency where…

General Economics · Economics 2023-08-30 Wenpin Tang

Blockchain applications that rely on the Proof-of-Work (PoW) have increasingly become energy inefficient with a staggering carbon footprint. In contrast, energy-efficient alternative consensus protocols such as Proof-of-Stake (PoS) may…

Cryptography and Security · Computer Science 2021-01-05 Muhammad Saad , Zhan Qin , Kui Ren , DaeHun Nyang , David Mohaisen

Proof of Stake (PoS) is a burgeoning Sybil resistance mechanism that aims to have a digital asset ("token") serve as security collateral in crypto networks. However, PoS has so far eluded a comprehensive threat model that encompasses both…

General Finance · Quantitative Finance 2020-02-05 Tarun Chitra

Proof-of-Stake (PoS) is a prominent Sybil control mechanism for blockchain-based systems. In "e-PoS: Making PoS Decentralized and Fair," Saad et al. (TPDS'21) introduced a new Proof-of-Stake protocol, e-PoS, to enhance PoS applications'…

Cryptography and Security · Computer Science 2025-04-25 Suhyeon Lee , Seungjoo Kim

Blockchains have witnessed widespread adoption in the past decade in various fields. The growing demand makes their scalability and sustainability challenges more evident than ever. As a result, more and more blockchains have begun to adopt…

Computer Science and Game Theory · Computer Science 2021-07-12 Shashank Motepalli , Hans-Arno Jacobsen

As cryptographic tokens and altcoins are increasingly being built to serve as utility tokens, the notion of useful work consensus protocols, as opposed to number-crunching PoW consensus, is becoming ever more important. In such contexts,…

Cryptography and Security · Computer Science 2019-05-13 Michał Król , Alberto Sonnino , Mustafa Al-Bassam , Argyrios Tasiopoulos , Ioannis Psaras

This paper examines the economic and security implications of Proof-of-Stake (POS) designs, providing a survey of POS design choices and their underlying economic principles in prominent POS-blockchains. The paper argues that…

General Economics · Economics 2024-05-24 Nicolas Oderbolz , Beatrix Marosvölgyi , Matthias Hafner

Blockchain consensus mechanisms must balance security, decentralization, and efficiency while ensuring fair participation. Proof of Team Sprint (PoTS) is a cooperative consensus mechanism designed to address the energy inefficiencies and…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-26 Naoki Yonezawa

We study long-term equilibria that arise in the token monetary policy, or tokenomics, design of proof-of-stake (PoS) blockchain systems that engage utility maximizing users and validators. Validators are system maintainers who get rewarded…

Computer Science and Game Theory · Computer Science 2025-02-13 Aggelos Kiayias , Philip Lazos , Paolo Penna

Proof-of-Stake (PoS) blockchain systems, especially those that allow stakeholders to organize themselves in ``stake-pools'', have emerged as a compelling paradigm for the deployment of large scale distributed ledgers. A stake-pool operates…

Computer Science and Game Theory · Computer Science 2021-11-17 Aggelos Kiayias , Elias Koutsoupias , Aikaterini-Panagiota Stouka

Proof-of-Work (PoW) is a popular consensus protocol used by Bitcoin since its inception. PoW has the well-known flaw of assigning all the reward to the single miner (or pool) that inserts the new block. This has the consequence of making…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-07-13 Danilo Bazzanella , Andrea Gangemi

Proof-of-Stake blockchains based on a longest-chain consensus protocol are an attractive energy-friendly alternative to the Proof-of-Work paradigm. However, formal barriers to "getting the incentives right" were recently discovered, driven…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , S. Matthew Weinberg

We introduce and study reward sharing schemes (RSS) that promote the fair formation of {\em stake pools}\ in collaborative projects that involve a large number of stakeholders such as the maintenance of a proof-of-stake (PoS) blockchain.…

Computer Science and Game Theory · Computer Science 2020-06-09 Lars Brünjes , Aggelos Kiayias , Elias Koutsoupias , Aikaterini-Panagiota Stouka

Mining blocks in a blockchain using the \textit{Proof-of-Work} consensus protocol involves significant risk, as network participants face continuous operational costs while earning infrequent capital gains upon successfully mining a block.…

Cryptography and Security · Computer Science 2025-11-19 Pierre-Olivier Goffard , Hansjoerg Albrecher , Jean-Pierre Fouque

Following the publication of Bitcoin's arguably most famous attack, selfish mining, various works have introduced mechanisms to enhance blockchain systems' game theoretic resilience. Some reward mechanisms, like FruitChains, have been shown…

Computer Science and Game Theory · Computer Science 2025-03-14 Lukas Aumayr , Zeta Avarikioti , Dimitris Karakostas , Karl Kreder , Shreekara Shastry

This paper presents a comprehensive comparative analysis of two dominant blockchain consensus mechanisms, Proof of Work (PoW) and Proof of Stake (PoS), evaluated across seven critical metrics: energy use, security, transaction speed,…

Cryptography and Security · Computer Science 2025-11-24 Kaeli Andrews , Linh B. Ngo , Md Amiruzzaman
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