Crypto Alphabet

What is Leased Proof-of-Stake (LPoS)?

Leased Proof-of-Stake (LPoS) is a consensus algorithm which is an enhanced version of Proof-of-Stake. Currently it can be called unique and it is supported only by Waves (WAVES) platform.

In a regular Proof-of-Stake system, each node that holds a certain amount of cryptocurrency is eligible to add the next block to the blockchain but in the LPoS system users can lease their balance to full nodes. With LPoS, the user will have the ability to lease WAVES from the wallet to different contractors which can pay a percentage as a reward. The larger the amount that is leased to a full node, the higher the chances of that full node being selected to produce the next block. If that full node is selected to produce the next block, the leaser will then receive a percentage of the transaction fee that is collected by the full node.

In a Leased Proof-of-Stake environment, users can choose between running a full node or leasing their stake to a full node with receiving rewards. This system allows anyone to participate in the Waves network maintenance.

User can lease his waves through leasing on any computer or mobile device that has an internet browser.

1 comment

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