CRYPTO GLOSSARY · TECH

What is Proof of Stake?

Consensus where validators stake coins.

📖 Full Definition

Proof of Stake (PoS) is a consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they've "staked" as collateral. PoS is far more energy-efficient than PoW.

💡 Example

Ethereum transitioned from PoW to PoS in 2022, reducing energy use by 99.95%.

🔗 Related Terms

Staking

Locking crypto to earn rewards and secure networks.

Proof of Work

Consensus where miners solve puzzles for rewards.

Validator

Node that validates transactions in PoS networks.

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