📌 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.
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