I’m looking for some feedback on something I’m planning on including in the PPC presentation in London. I need to be sure what I’m saying is 100% correct so need someone who is deep in the technical detail to validate it.
I want to illustrate how blocks are created under PoS & PoW.
I think I’ve got PoW pretty much correct as there is plenty of material out there. It boils down to the search for a number (the nonce) which when hashed with the other information on the left of the diagram produces a hash that satisfies the difficulty constraint of the network. The coinbase transaction is the reward for the miner and contains a transaction to their address with no source address so essentially creating the coins as a reward for their work.
Proof of Stake instead relies on a coinstake transaction which is a transaction to yourself which consumes the coin age you have amassed - thi consumption is a by prduct of how coin age is defined. Coin age is simply number of coins times length of ownership.
I doubt I’ve got it spot on first time, and what I’m not 100% sure about is how the network validates/limits the Proof of Stake transactions or comes up with a value for the reward for creating a coin stake transaction. So if anyone can enlighten me on that point I’d appreciate it