Long touted as the future of blockchain consensus, Proof of Stake (PoS) has only raised doubts in the crypto space. The lack of flagship projects whose success is based on this model quickly categorized it as purely theoretical. As humans only believe in the technical prowess they see, 2020 will have been the year of PoS. It gave rise to a proliferation of proof of stake networks led by Ethereum 2.0. It could even be the start of a small revolution in the industry.
Four of the first cryptocurrencies by market capitalization to engage in PoS
While there were none at the start of the year, four of the top nine cryptocurrencies by market cap have adopted PoS. This currently represents a participation of 15% of the total capitalization of cryptocurrencies. The most advanced projects in this area are those initiated by Ethereum, Polkadot and Cardano especially. Before this practical phase, many observers questioned the feasibility of the thing, especially with delays and difficulties experienced by Ethereum 2.0. Once the latter launched last month, it increased proof of stake credence within the crypto space.
Second behind bitcoin in the hierarchy of market capitalizations, Ethereum can boast of having the largest community of developers available. By switching to proof of stake for its new version, it sends the signal that this concept is made to last. While Ethereum 2.0 is the largest project to migrate to PoS to date, there are others that are of equal interest. If you look at it, you can clearly see that it is abouta gradual adoption of proof of stake.
Inevitable migration to PoS for a decentralized economy
While waiting to see how Ethereum 2.0 evolves, Polkadot remains the largest PoS blockchain for now with over $ 3 billion in stakes. Bringing up the rear of the top 5 market capitalization, Chainlink is one of the projects of which migration to proof of stake is imminent. It is a safe bet that the majority of the most important blockchains will make this choice by the end of 2021. It is, moreover, inevitable in the eyes of those who seek to build applications and institutions for a decentralized economy.
Clearly, adoption should increase with the strong activity and development that will be visible at the level of the first blockchains having made this choice. On the other hand, it seems that the wealth held in networks like bitcoin is looking for another way to monetize, which could benefit PoS. So if 2020 was the year of the first practices for this consensus method, 2021 could look like a takeover by him.
Despite all these positive signals, we must not forget that there are limits to adopting a proof of stake as we have explained. here. It will therefore be up to each project to assess the relevance of this choice or to fall back, if necessary, on the DPoS (Delegate Proof of Stake) solution.