Proof-of-validation (PoV) is a unique proof-of-stake (PoS) consensus mechanism that works to achieve consensus through staked validator nodes.
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What Is Proof-of-Validation?
Proof-of-validation (PoV) is a unique proof-of-stake (PoS) consensus mechanism that works to achieve consensus through validator nodes. Each node within a PoV system keeps a complete copy of the sequence of transactions in blocks that are created on the blockchain. A copy of all of the user accounts can then be identified by a user’s public key, as well as whichever crypto token that node owns.
From this point onwards, a user can stake their coins inside of the validator nodes. The number of tokens staked within each validator will consequently determine the number of nodes that a specific validator possesses.
A new block is confirmed once a set of validators, with at least two-thirds of the network’s total voting power, send a commit vote for that block. This means that PoV protocols can be Byzantine fault tolerant, and they can only remain healthy if one-third or less of the network’s total nodes get compromised.
Proof of Validation vs Proof of Stake
Proof-of-validation and proof-of-stake are very similar. Proof-of-validation can be considered a subset of proof-of-stake, similar to delegated proof-of-stake. That means all PoV blockchains use a form of PoS but not vice versa. For this reason, PoS is much more widespread than PoV.
For example, most major blockchains like Ethereum, BNB Chain and Avalanche use a form of PoS. Most new blockchains prefer to use PoS or a subset like PoV because these consensus algorithms are more energy-efficient than proof-of-work. Since validator nodes need to expend a fraction of the energy needed for mining, PoS and PoV blockchains are constantly growing in popularity.