Proof-of-Stake V2

The Electra Protocol blockchain uses a proof-of-stake consensus mechanism. The current version used is Proof-of-Stake Version 3 Enhanced (PoSv3e).

In 2014, the Proof-of-Stake Version 2 algorithm (PoSv2) was created by Pavel Vasin for Blackcoin and removed the “coin age” vulnerability of PoSV1. It took  into consideration a transaction “depth” in the blockchain rather than block timestamps to determine the age of coin transactions and a random component in awarding blocks and staking rewards. That menas that “coin age” as well as “weight” no longer existed and block awards were now based on a user being connected to the network so they could be randomly selected based on matured coin transactions. The deeper those transactions were in the blockchain (the more blocks created since the block containing their transaction was created) increased their odds of being selected for a new block and staking award.