Proof of Stake (PoS) is an algorithm in which the blockchain network validators are selected based on the amount of tokens that have been staked behind them. Validators are entities who are charged with the important tasks of producing blocks (hence processing blockchain transactions) and validating the blocks that are produced by other validators.
PoS distributes validator selection decisions across a network of nominators and validators, hence creating more decentralized power and greater security in the network.
Proof of Stake consumes significantly less energy than Proof of Work like Bitcoin as it selects validators based on tokens staked, rather than relying on heavy computation by multiple nodes competing to validate.
Dock token holders can earn passive income by nominating validators and receiving portions of the rewards earned by the validators.
Use of Dock tokens in network governance and nominations greatly enhances their utility.
Under PoS, Dock token holders can vote on proposed changes to the network by locking up their tokens.
While many of Dock’s competitors leverage permissioned blockchains and hence limit the access to their networks to the select few, the Dock network is fully permissionless, allowing participation by token holders as validators, nominators, and voters.
It is part of Dock’s vision to build a network that has maximum participation and widespread adoption, and we believe that this can only be achieved through decentralization, democracy, and transparency offered by a public blockchain that is open for all token holders, and free from the control of a single entity.
