## Nominated Proof of Stake (NPoS): Polkadot's way to safer block validation

What is the reason that blockchain networks are increasingly turning towards Nominated Proof of Stake? The answer is simple: there is a good balance between security and decentralization.

## The Revolution of Proof of Stake

A modern blockchain ecosystem has almost completely transitioned to the Proof of Stake (PoS) consensus mechanism. After Ethereum successfully implemented Proof of Stake, it became clear that coin staking is a significantly more efficient solution than validation based on computational power. The drastic reduction in energy consumption, better scalability, and easier decentralization all support this direction.

But this is not the whole story yet. There are several versions of Proof of Stake, and among them, Nominated Proof of Stake is one of the most scalable and secure implementations.

## How does NPoS work?

The Nominated Proof of Stake is fundamentally a smarter delegation system. While in other PoS networks, coin holders directly select validators, the logic is different in NPoS.

Nominators (, such as Polkadot users, can select **up to 16 validators** behind which they can stake their own tokens. This multiple selection not only increases the decentralization of the network but also reduces dependency on a single validator.

The key security mechanism of NPoS is the **reward and penalty system**. If a nominator stakes behind a malicious validator and that validator attempts to produce fraudulent blocks, the nominator also loses part of their stake. This not only threatens the validator but also holds nominators accountable for their choices.

Polkadot also **distributes the stake equally** among all selected validators, regardless of how many have delegated to each validator. This prevents larger stakers from completely dominating the network.

## NPoS vs. other PoS variants

**Ethereum Staking** is significantly simpler: validators run blocks directly, there is no delegation layer. At the same time, the network is centralized, as the coin holders compete directly against each other.

A **Delegated Proof of Stake )DPoS(**, which is used by, for example, Cosmos, allows users to elect validators, but they do not directly share in the penalties if the validator acts maliciously.

NPoS has further developed this idea: users are responsible for their decisions. If they make a wrong choice, it hurts directly. This creates a strong incentive for more careful validator selection.

## Why is NPoS important for blockchains?

The balance: between security, decentralization, and accessibility. In **NPoS, you do not need a large amount of your coins to participate actively**, as you can join nominator groups. At the same time, the choices of the community directly influence the stability of the network.

## Which projects use NPoS?

**NPoS is developed by Polkadot** and is used by several Polkadot-based projects. Kusama ), the Polkadot testnet(, also uses this. Due to its innovative approach, other projects are also considering its adaptation.

## Summary: The Future of NPoS

The Nominated Proof of Stake is a step in the evolution of Proof of Stake consensus mechanisms. The method introduced by Polkadot has proven that the combination of smart delegation and equal rewards results in stable, decentralized networks.

As the blockchain ecosystem evolves, among the various forms of PoS, NPoS is one of the most promising solutions for those who value both decentralization and security. In the future, it is likely that more networks will adopt similar models.