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.

University of Minnesota - Twin Cities

Under FTS, each blockchain branch selects uniformly and randomly from all native coins, and the stakeholder of the selected coin then receives the opportunity to append the branch and collect a block reward. 

Follow-the-Satoshi (FTS) algorithm

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

Time slots in Proof-of-Stake

Since coins are selected uniformly and randomly, the probability that a given user has the opportunity to append to a branch equals the proportion of coins they own. 

Implications for large stakeholders under the Follow-the-Satoshi algorithm

- 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

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


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