FAQ
In PoS, validation involves cryptocurrency holders (validators) locking up a certain amount of the coin as collateral. The protocol then selects validators to verify transactions and create new blocks based on their staked amount and holding duration.
Proof of Stake was first introduced by Sunny King and Scott Nadal in a whitepaper that outlined the mechanism's potential to address energy consumption concerns associated with PoW.
Ethereum is in the process of transitioning from the PoW model to the PoS model through Ethereum 2.0. This transition aims to increase the scalability and speed of the network by reducing energy consumption. After its transition is fully completed to POS, Ethereum will be able to process 100,000 transactions per second.
No, Bitcoin currently uses the PoW model for validation. However, discussions about transitioning to a PoS or hybrid model have emerged as the industry explores more environmentally friendly alternatives.