All miners' consensus results "vote" using their Hong Kong Phone Number List own resources for such verification. For this, they are rewarded with newly created cryptocurrency. In other words, miners sell their "network trust maintenance" services in Hong Kong Phone Number List exchange for coins. So how do we know who has the right to vote? It can't be a wallet because such a fraudulent user could create millions of wallets and use these ghost Hong Kong Phone Number List votes to verify whatever blockchain version they like. It can't be an IP address either, because any ISP can fake a large network, creating hordes of ghost voters. Therefore, voting requires limited resources that cannot be copied or forged.
For the Bitcoin system, Satoshi Nakamoto proposed a proof-of-work solution, which involves verification by computing power. Indeed, if your computer's computing power is X, you can create N virtual slaves, but the total computing power will not exceed X. That is, the owner of such a virtual slave will not have more votes Hong Kong Phone Number List than a single user. Other consensus concepts are then provided, focusing on computing resources other than processors. For example, proof of capacity is based on disk drive capacity. This has sparked an arms race in the evolution of the cryptocurrency ecosystem. Miners Hong Kong Phone Number List continue to invest in their hardware until their equipment depreciation charges zero out the revenue generated by mining.
Then they start complaining Hong Kong Phone Number List that "mining is not profitable" or "cryptocurrency is just a scam". Proof of Stake is a pioneering concept introduced by Sunny King in Peercoin. Peercoin limits Hong Kong Phone Number List voting power through its own coin. This helps avoid an arms race by replacing material resources (processors, disk drives) with virtual resources (coins). Therefore, people no longer waste material resources money and electricity in pursuit of greater mining capacity. PoS algorithms also Hong Kong Phone Number List have flaws. For example, it is vulnerable to insider attacks. The latter is partially blocked by additional tools, such as dynamic checkpointing.