Leased proof-of-stake is a version of a proof-of-stake consensus mechanism that's used on the Waves platform which allows token holders to "lease" their tokens to full nodes and earn a percentage of the payout as a reward. On a regular proof-of-stake platform, each node is able to add a new block to the blockchain. 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.
On the Waves Leased proof-of-state platform, node operators can utilize a different person's mining power to generate new blocks without the need to send any WAVES, meaning coins don't leave the leaser's wallet. There is always the option to stop leasing by placing a cancel lease transaction. Screening for an appropriate node operator is up to the user leasing. On the Waves platform, for example, there is a minimum balance that is required to be reached to operate a node (1000 WAVES). Also, rewards are given to the leaser as more transactions are made on the network.
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- Waves PlatformWaves is a digital currency platform that lets users create their own cryptocurrencies.
- Proof-of-stakeProof-of-stake (PoS) is a system by which a network (e.g., a cryptocurrency blockchain) aims to achieve distributed consensus.
- Proof-of-work systemA proof-of-work (POW) system (or protocol, or function) is an economic measure to deter DOS attacks and other abuses (e.g. spam) on a network by requiring some work from the service requester, usually meaning processing time.
- Delegated proof of stake (DPOS)Delegated proof of stake (DPOS) is a method of providing security to a crypto-currency network through the approval voting of delegates.