Proof of Stake is a crypto money infrastructure algorithm such as PoW. PoS'ta coins are produced at system start and are sent to wallets at certain intervals according to the investment of everyone. It is an algorithm method where you have as much power as the number of coins you have.
In order to increase your power in Proof of Work, mining is required. This requires you to increase the number of devices you are mining, or to upgrade these devices with more power. In Proof of Stake you only need to buy more than the relevant coins.
Bitcoin's system is designed according to the Proof of Work (PoW) algorithm. Proof of Work technology brings additional electrical energy and equipment costs as high calculations are required.
In the Proof of Stake system, verification is performed randomly depending on the amount of coins in the person's wallet account. So every wallet with Coin is also a confirmation. Of course, accounts that have a high amount of coins in the system are more likely to be used as validators and therefore receive more shares from each Transaction Verification transaction.
The first co-op with the Proof of Stake (PoS) is Peercoin. There are different types of Proof of Stake.
What are the Types of Proof of Stake?
The first of the PoS types offers an annual return on interest. In this kind of PoS coins, when you synchronize your wallet, you earn some coins within the time period (Stake). In this way, the network becomes strong and the number of active users decreases, but the coin does not die. Apart from selling coins, investors may choose to stake the interest. This in turn reduces the value of the coin to a certain extent.
In the second type, there is no interest and the maximum number of coins is kept constant. In such coins, your wallet must be constantly active and you have to coin your coins. The advantage of this system is that since there are people who want to constantly forge, the system will be very strong and the transfer process will take place in a very short time. Since the number of coins is kept constant, it is unbeatable for inflation. In the long run, the coin does not lose value.