What is Effective Proof-of-Stake (EPoS)?
Let's find out Effective Proof-of-Stake (EPoS) meaning, definition in crypto, what is Effective Proof-of-Stake (EPoS), and all other detailed facts.
The term Effective Proof-of-Stake (EPoS) is used to describe a better version of the Proof-of-Stake (PoS) consensus mechanism provided by Harmony. This means that Harmony’s blockchain uses Effective Proof-of-Stake as a replacement for Proof-of-Work (PoW).
EPoS is an improved version that guarantees that Harmony’s blockchain remains decentralized by implementing random state sharding. Its goal is to make sure that major stakeholders can’t centralize power. This is done by making the validators that hold a bigger number of stake tokens than others must also run a bigger number of nodes.
Effective Proof-of-Stake is considered to be the first Proof-of-Stake mechanism that directs its attention to the sharding process.
In order to make sense of EPoS, you must have a clear understanding of Proof-of-Stake.
Essentially, Proof-of-Stake is a consensus mechanism implemented within the blockchain that allows the production of blocks while also validating transactions and eliminating the problem of double-spending. It can be considered a sort of alternative to Proof-of-Work.