📌 Nominated Proof of Stake Summary
Nominated Proof of Stake, or NPoS, is a method used by some blockchain networks to choose who can create new blocks and verify transactions. In this system, token holders can either become validators themselves or nominate others they trust to act as validators. The more nominations a validator receives, the higher their chance of being selected to confirm transactions and earn rewards. This approach aims to make the network secure and decentralised, while allowing users to participate even if they do not want to run a validator node themselves.
🙋🏻♂️ Explain Nominated Proof of Stake Simply
Imagine a school election where students can either run for class president or support a candidate by nominating them. The candidates with the most support from their classmates are more likely to win. In Nominated Proof of Stake, you can help choose who gets to make important decisions, even if you do not want to do it yourself.
📅 How Can it be used?
Nominated Proof of Stake can be used to build a secure and energy-efficient blockchain for managing digital identities.
🗺️ Real World Examples
Polkadot uses Nominated Proof of Stake to select validators who maintain the network. Token holders can support trustworthy validators by nominating them, helping to ensure that only reliable participants are responsible for validating transactions and producing new blocks.
Kusama, a blockchain network for testing new technologies, also uses Nominated Proof of Stake. Community members can nominate validators they trust, strengthening network security and giving smaller participants a way to influence who maintains the blockchain.
✅ FAQ
How does Nominated Proof of Stake work in simple terms?
Nominated Proof of Stake lets people who hold tokens either become validators or nominate someone they trust to do the job. Validators are chosen based on how many nominations they have. This means even if you do not want to run a validator yourself, you can still help secure the network by supporting someone else. It is a way to keep things fair and open while making sure the network stays safe.
Why might someone choose to nominate a validator instead of becoming one?
Running a validator node can be technical and time-consuming, and not everyone has the resources or know-how to do it. By nominating a trusted validator, you can take part in the network and even earn rewards without handling the work yourself. It is a straightforward way for regular users to get involved and support the network.
What are the benefits of Nominated Proof of Stake for blockchain networks?
Nominated Proof of Stake makes it easier for more people to join in and help run the network. It spreads out decision-making, which helps keep things decentralised and secure. By letting token holders nominate validators, it encourages trust and participation from a wider group, not just those who can set up a validator node.
📚 Categories
🔗 External Reference Links
Ready to Transform, and Optimise?
At EfficiencyAI, we don’t just understand technology — we understand how it impacts real business operations. Our consultants have delivered global transformation programmes, run strategic workshops, and helped organisations improve processes, automate workflows, and drive measurable results.
Whether you're exploring AI, automation, or data strategy, we bring the experience to guide you from challenge to solution.
Let’s talk about what’s next for your organisation.
💡Other Useful Knowledge Cards
Employee Experience Design
Employee Experience Design is the process of intentionally shaping every aspect of an employee's journey within an organisation, from recruitment to exit. It focuses on understanding employees' needs, expectations, and feelings at each stage of their work life. By designing better experiences, organisations aim to boost satisfaction, productivity, and retention.
Wrapped Asset Custody
Wrapped asset custody refers to the secure holding and management of wrapped assets, which are digital tokens that represent another asset on a different blockchain. Custodians ensure that each wrapped token is backed one-to-one by the original asset, maintaining trust in the system. This involves specialised processes to safely store, audit, and release the underlying assets as users move wrapped tokens between blockchains.
Secure Deployment Pipelines
A secure deployment pipeline is a series of automated steps that safely moves software changes from development to production. It includes checks and controls to make sure only approved, tested, and safe code is released. Security measures like code scanning, access controls, and audit logs are built into the process to prevent mistakes or malicious activity.
Queue Times
Queue times refer to the amount of time a task, person, or item spends waiting in line before being served or processed. This concept is common in places where demand exceeds immediate capacity, such as customer service lines, website requests, or manufacturing processes. Managing queue times is important for improving efficiency and customer satisfaction.
Output Tracing
Output tracing is the process of following the results or outputs of a system, program, or process to understand how they were produced. It helps track the flow of information from input to output, making it easier to diagnose errors and understand system behaviour. By examining each step that leads to a final output, output tracing allows developers or analysts to pinpoint where things might have gone wrong or how improvements can be made.