Some blockchain protocols use proof of stake (PoS) validation to secure the network and validate the transactions included in each block. Proof of stake participants operate a node on the network to validate transactions and create blocks, and, in return for executing this work, earn block rewards.
A set amount of value must be locked, or “staked,” to the node in order for it to become active as a validator on the network. Once active, it is eligible to produce work on-chain in exchange for rewards, but on some PoS protocols it is also at risk for losing a portion of their rewards if they behave poorly or maliciously—commonly referred to as slashing. The incentive of rewards for good behavior and penalties for bad behavior are critical to maintaining the security of a network.
Generally, a PoS node is selected to validate a block based on the amount of tokens that are staked to that node. As such, the more tokens staked to a node, the higher the likelihood that node will be selected to perform work and earn block rewards.
PoS validation was developed in part as a solution to the critiques of proof of work (PoW) mining, including PoW’s exclusionary barriers to participation and high required energy expenditure. While proof of work mining, used in the Bitcoin protocol, is one of the oldest mechanisms behind blockchain technology, there is a growing movement to shift the industry to proof of stake validation. Bison Trails is a proud member of the Proof of Stake Alliance, a cohort of entities furthering this mission.
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We also make it easy for anyone building Web 3.0 applications to connect to blockchain data from 30 protocols with QT. Our goal is for the entire blockchain ecosystem to flourish by providing robust infrastructure for the pioneers of tomorrow.
In January, 2021, we announced Bison Trails will be joining Coinbase to accelerate our mission to provide easy-to-use blockchain infrastructure, now as a standalone product line as part of Coinbase. The Bison Trails platform will continue to support our customers. With Coinbase’s backing, we will enhance our infrastructure platform and make it even easier to participate in decentralized networks and build applications that connect to blockchain data. Read more.