A Proof-of-Stake proposal developed by King and Nadal in 2012 was implemented on the Peercoin blockchain as a hybrid scheme with Proof-of-Work.

Peercoin blockchain

Proof-of-Stake was first deployed as a stand-alone protocol on the Nxt blockchain. 

Nxt blockchain

Proof-of-Stake has found much recent usage in decentralized applications relating to betting markets and decentralized exchanges. Over 50 Proof-of-Stake projects have been announced from 2015 to 2020.

Decentralized applications (dApps) in Proof-of-Stake

Algorand is a recently launched Proof-of-Stake blockchain that offers the potential for further applications such as tokenization and faster settlement processes. 

Algorand

- Peercoin blockchain
- Nxt blockchain
- Decentralized applications (dApps)
- Algorand


University of Minnesota - Twin Cities

This consensus mechanism depends on selecting validators by their proportion of holdings. Cardano is an example of a blockchain that uses Proof of Stake.

Proof of Stake Protocol

Saleh, Fahad. (2021). Blockchain Without Waste: Proof-of-Stake. Wake Forest University. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3183935


Blockchain Without Waste: Proof-of-Stake

- Nothing-at-Stake problem
- Validator fraud
- Wealth concentration
- Double spending
- Staking pools

Concerns regarding Proof-of-Stake

- Restricting access to update the blockchain
- Sufficiently low block rewards
- Sufficiently modest block reward schedule

Conditions for generating consensus with Proof-of-Stake

- Ability to generate consensus with low block rewards
- Scalability without incurring greater computational costs

Advantages of Proof-of-Stake

- Follow-the-Satoshi (FTS) algorithm
- Digital Signature Scheme (DSS)

Implementations of Proof-of-Stake

Proof-of-Stake in practice

The Follow-the-Satoshi algorithm divides time into periods called time slots. Only one block can be added to any blockchain branch in any given slot.

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