The Application of Proof of Stake: Advantages, Challenges and Future Development

School of Foreign Languages and Cultural Communication, Shanghai Polytechnic University, 201209 Shanghai, China

^* Corresponding author: ZhenhaoZhang@fsu.edu.pa

Abstract

With the development of consensus mechanism, researchers emphasize the need to strengthen the Proof of Stake consensus process. Problem like how to keep the transaction platform protocol fair; how to decentralize the digital transaction system etc. have still remained to be solved. The Proof of Stake also has potential to be applied in various fields. So, it is worth reviewing on the research in recent years to summarize the research methods and conclusions. Study is based on the classical research on Proof of Stake consensus mechanism, improvement of protocol and algorithm of Proof of Stake and application of Proof of Stake. Related developer documentation website, conference papers and authoritative papers were considered. The selected paper was systematically reviewed to make comments on their research methods and analysis the advantages and disadvantages of the research method. After that, the research conclusions are summarized, and potential valuable project or future challenge are described. Through researching on current researches in Proof of Stake, it ultimately leads to the conclusion that Proof of Stake consensus mechanism has better energy efficiency and scalability comparing to the Proof of Work. However, the problems of security and centralization have remained to be solve. In the future, these problems can be solved by improving the algorithm of it or develop new protocol like mixed one of Proof of Stake and Proof of Work.