Proof of Stake (PoS)
A consensus method where validators lock up coins as collateral instead of burning electricity to secure the chain.
Proof of stake replaces miners with validators who put coins on the line. The protocol picks who proposes the next block, weighted by stake. Misbehave and the network slashes part of that stake, so dishonesty costs money directly.
Ethereum switched to it in the 2022 Merge, cutting its energy use by over 99%. Critics argue it can favor large holders, since more stake means more influence. It now secures most newer chains.
Related terms
A participant in a proof-of-stake network that proposes and confirms blocks, putting staked coins at risk for honesty.
StakingLocking up tokens to help secure a proof-of-stake network and earn rewards, similar to interest on a deposit.
Proof of Work (PoW)A consensus method where miners burn computing power to earn the right to add blocks and deter cheating.
Consensus MechanismThe rules a decentralized network follows to agree on one valid history without trusting any central party.