Existing cryptocurrencies have up until now been using the Proof of Work (PoW) as a means of verifying transactions within their network. This verification requires a large amount of energy, leading to the consumption of about 41 terawatt-hours of energy during Bitcoin mining.
For this reason, an ecological alternative has been proposed to PoW, called the Proof of Stake (PoS) and it is expected that it will gradually replace the old model. PoS is a consensual blockchain mechanism in which miners are randomly selected by an algorithm based on the number of their assets (tokens). In theory, the users’ extraction capacity will be equal to their network share. To validate a new block a vote is made, depending on the decision of the number of tokens that the participants have.
The main advantage of PoS over PoW lies in its lower energy needs, which is because users do not have to solve problems as complex as in the case of PoW. In addition, the security is greater since the defence of the distributed registry by the miners is in their own interest.
Therefore, PoS is more attractive and promising than the PoW, solving also many of its problems, especially that of excessive energy consumption and also helping to improve its speed and safety.
Blockchain is one of the main lines of research of the Air Institute, which investigates different distributed ledger technologies and applications, ranging from intelligent contracts to the development of cryptocurrencies and peer-to-peer energy trading.