Deep Research and Development

What is Leased Proof of Stake Leased Proof of Stake operates on the principle that literally everyone can win the chance to add a block to the blockchain, by using a system not much unlike a lottery which can be participated in using leased coins. In classic Proof of Stake , holders with low amounts of coins are unlikely to ever get the chance to add a block — just as small miners with low hashrate are unlikely to mine a block in bitcoin, using Proof of Work . In fact, it may be many years before a small holder is lucky enough to win. This means that many holders with low amounts of coins will never actively partake in the network, so maintaining it is left to a limited number of larger players, which inadvertently creates unwanted centralization and possible 51% attack . Leased Proof of Stake works exactly like PoS, but uses leasing to provide small holders with an incentive to take part. The low holding nodes (D, E, F, G, H) lease their balance to a staking node (B), while...