Blockchain and distributed ledger

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The goal of creating the new Proof of Stake algorithm was to reduce resource intensity and, accordingly, cost. One of the initiators of the emergence of PoS was Vitalik Buterin, the founder of the Ethereum cryptocurrency, the blockchain of which is transitioning from PoW to PoS.

For Proof of Work, the priority parameter is computing power, while in Proof of Stake, the wallet balance is more important. In such a blockchain, transactions are carried out and confirmed not morocco rcs data with the active participation of computing equipment, but thanks to active coins. In fact, each owner of cryptocurrency on a PoS blockchain is an investor, and the importance of mining is reduced. The disadvantages of this algorithm include the likelihood of duplicate transactions.

Ideally, the blockchain should work on both algorithms. Some altcoins already use this mechanism, but its widespread implementation should be preceded by further development.

While Buterin was developing his idea for a computer that could span the world, a group of financial institutions including Barclays, Goldman Sachs, and JP Morgan formed the R3 consortium to tackle the opposite problem. They wanted a private, controlled version of the blockchain, specifically looking at the role of locks in making payments between banks more efficient.