Proof of Stake

ooProof of Stake (PoS) is a consensus mechanism used in blockchains that enables transaction validation and network security without requiring energy-intensive mining. In PoS, instead of computational competition, validators are chosen to confirm transactions based on the number of tokens they hold and “stake.” The more tokens a user stakes, the higher their chances of being selected to validate a new block and earn rewards.

PoS is more energy-efficient than Proof of Work (PoW) and allows for faster and cheaper transactions. It also includes security mechanisms such as “slashing,” which penalizes validators for dishonest or incorrect behavior. PoS is used in many modern blockchains, including Ethereum 2.0, Cardano, and Polkadot, as it improves scalability and reduces the network’s environmental impact.