Proof of Stake
Also known as PoS
Proof of stake is a consensus mechanism in which validators lock up, or stake, the network’s tokens as collateral for the right to propose and confirm blocks. Validators who follow the rules earn rewards, while those who act dishonestly or go offline can lose part of their stake through penalties such as slashing. Compared with proof of work, it uses far less energy, though critics debate how it affects the concentration of influence among large holders.
Related terms
- Staking Locking tokens to help secure a network in exchange for rewards. Consensus
- Validator A proof-of-stake participant that proposes and confirms blocks. Consensus
- Slashing A penalty that destroys part of a misbehaving validator’s stake. Consensus
- Proof of Work Consensus secured by competitive computing work. Consensus
- Consensus Mechanism The rules that let a network agree on one version of the ledger. Consensus