If you have been in the crypto world for some time now, then you have definitely heard of the PoS model, or the Proof of Stake! We already gave you an all-in-all briefing related to the concept of staking. Now, this model slightly differs, but revolves around the same concept. 

The Proof of Stake model!

The proof of stake model is an agreement mechanism or method which confirms and validates the block transactions being added to the blockchains. Now, what does it have to do with staking? Well, simply because of the fact that validators and users should lock up or stake their cryptocurrencies and coin in order to secure the network at first. Hence, and in other words, the model allows users to stake and create their own nodes and blocks. However, they can be unstaked at any time in order for the users to trade them again! 

Reviewing and Rewarding! What about that?

The cryptocurrency’s proof of stake model usually picks a user or validator node to review the block, especially when the transactions block is ready to be processed. Now there is something really important to keep in mind. The validator should confirm that the transactions are accurate. This is when the blocks are added to the blockchain, where the validator automatically receives crypto rewards in return. 

On the other hand, if the blocks are added but with inaccurate transactions, this is when penalties are subjected to the validators and in return, some of their staked cryptocurrencies and holdings will be lost and withdrawn! So this is the Proof of Stake model and how it works. Stay tuned for more tapping into the world of cryptocurrencies, only with BLACK LEMON Academy!