The post Stellar (XLM)’s Unique Proof-of-Agreement Offers Enhanced Security Over Traditional PoS appeared on BitcoinEthereumNews.com.

Darius Baruo Apr 11, 2025 18:14 Stellar (XLM)’s Proof-of-Agreement consensus mechanism emphasizes trust and social reputation, enhancing security and decentralization compared to traditional Proof-of-Stake systems. Stellar (XLM), a protocol for digital currency to fiat transfers, is gaining attention for its unique consensus model, Proof-of-Agreement (PoA), which diverges from the more common Proof-of-Stake (PoS) systems. Unlike PoS, where validators are often determined by the amount of cryptocurrency they hold, Stellar’s PoA requires validators to earn trust from other network participants, providing a distinctive edge in terms of security and decentralization. Trust-Based Validation According to Stellar, the PoA model mandates that validators are trusted by other network validators, rather than requiring financial stakes. This approach prevents anonymous entities from influencing the network without earning a place through trust, effectively blocking potential malicious actors from becoming block producers overnight. Decentralization and Security Stellar’s PoA model does not rely on a central authority to choose validators. Instead, it allows any participant to run a validator and attempt to gain trust within the network. This model ensures that the only way to influence the network maliciously is by convincing a majority of trusted validators to trust the attacker, a significantly higher barrier than merely purchasing tokens. Advantages Over PoS PoA stands out by focusing on social reputation rather than economic power. This model requires validators to maintain their reputation, as their identity is linked to their actions. In contrast, PoS systems often allow validators with large stakes to wield influence, sometimes leading to anonymous plutocracy. Furthermore, PoA gives validators control over which votes to accept, preventing their decisions from being overridden by untrusted peers, a common issue in PoS systems. Security Against Attacks Stellar’s PoA model mitigates issues like Maximum Extractable Value (MEV) exploitation, which is prevalent in PoS networks. Validators on Stellar do not…

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Filed under: News - @ April 12, 2025 6:22 am