---
title: "Understanding Blockchain Fundamentals: Proof-Of-Stake"
url: https://daily.dev/posts/understanding-blockchain-fundamentals-proof-of-stake-cfit-ylhi
source_url: https://levelup.gitconnected.com/understanding-blockchain-fundamentals-proof-of-stake-66250e3be61?source=rss----5517fd7b58a6---4
type: article
source: "gitconnected"
published: 2022-05-02T00:22:55.741Z
updated: 2022-05-02T00:22:55.743Z
tags: ["crypto", "blockchain"]
reading_time: 6
upvotes: 10
comments: 0
language: en
---

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# Understanding Blockchain Fundamentals: Proof-Of-Stake

**[gitconnected](https://daily.dev/sources/gc)** · 6 min read · 10 upvotes · 0 comments

## Summary

Proof-Of-Stake is a new consensus algorithm for the Bitcoin blockchain. It works by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof of work schemes. The first functioning use of PoS for cryptocurrency was Peercoin in 2012.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://levelup.gitconnected.com/understanding-blockchain-fundamentals-proof-of-stake-66250e3be61?source=rss----5517fd7b58a6---4>

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---

Tags: [#crypto](https://daily.dev/tags/crypto), [#blockchain](https://daily.dev/tags/blockchain)

[View this post on daily.dev](https://daily.dev/posts/understanding-blockchain-fundamentals-proof-of-stake-cfit-ylhi)