The Proof-of-Loss Consensus Algorithm

An alternative consensus algorithm to both proof-of-work and proof-of-stake, proof-of-loss addresses all their deficiencies, including the lack of an organic block size limit, the risks of mining centralization, and the “nothing at stake” problem:

There was an error on page 5 of the paper, which made the block-chaining odds formula confusing. The error was in the text, not in the formula, and consisted on assuming the affected route as always being the rewarded one, which is false. The corrected version is already available at the same URL. The new file’s date is 02/07/2017, and downloading it will probably require clearing the browser’s cache.

In addition to corrections and improvements, the paper has now an introduction with examples:

The paper now includes the pseudocode for block validation: