Effective Proof-of-Stake

Proof-of-Stake is a consensus mechanism that aims to balance security and decentralization. With Proof-of-Stake, instead of relying on miners to verify transactions and create new blocks, the responsibility of verification is given to those who hold Harmony tokens. This helps to secure the network by ensuring that those who have a financial stake in its success are also responsible for its upkeep. It also contributes to decentralization by giving all token holders an equal say in the network’s governance.