Choosing the block creator

The probability of being selected as the block creator is proportional to the percentage of state cryptocurrency in an account. Some variants have a threshold on the amount of power controlled by a single account to prevent centralization.

However, pseudo-anonymity allows users to create multiple accounts and distribute their cryptocurrency to defeat the cap. The selection of the block creator is done using a pseudo-random algorithm that takes into account the previous block hash and user stakes.

The algorithm ensures a level of randomness to prevent gaming the system while maintaining decentralization. There are two main categories of proof of stake algorithms: fully randomized and coin age-based selection. The transition from proof of work to proof of stake can be challenging to design and implement. Ethereum, for example, has faced delays in implementing proof of stake.