Proof of stake makes the entire mining process virtual and replaces the

miners with validators.

This is how the process works:

The validators will have to lock up some of their coins as stake.

After that, they will start validating the blocks. It means that when

they discover a block that they think can be added to the chain, they

will validate it by placing a bet on it.

If the block gets appended, then the validators will get a reward

proportionate to their bets.

As you can see, the PoS protocol is a lot more resource-friendly than PoW.

In PoW, you NEED to waste a lot of resources to go along with the

protocol; it is basically a wastage of resources.

Conclusion

In this chapter, we discussed the blockchain consensus models. The process

of achieving agreement within a distributed system on the valid state is

consensus. Consensus models define the security of the blockchain built

around the principle of fault tolerance which ensures the liveliness of the

network. Forking, performance, security, cost of participation, and

scalability are the challenges that networks may face with changes in

consensus models.

Next, we discussed the algorithms of consensus – PoW, PBFT, PoS, PoB,

PoC, and PoET mechanism of consensus and the methods of consensus. We

also discuss the consensus model protocol names.

The proof-of-work consensus model is discussed in detail, answering the

questions like what is a “mathematical puzzle”, how is this algorithm

implemented in blockchain, and the disadvantages of the PoW consensus

algorithm. Also discussed is proof-of-stake.

The new skills together with the learning and proficiency you have gained

in this chapter about the blockchain consensus models, shall enable you to

confidently deal with the topic and put the knowledge gained to academic

and professional use.