Glossary

Proof of Stake

Proof of Stake (PoS) is a consensus mechanism used by blockchain networks to validate transactions and create new blocks. Unlike Proof of Work (PoW), which requires miners to solve complex mathematical problems, PoS allows validators to participate in the consensus process based on the quantity of cryptocurrency they hold and are willing to stake as collateral. This method is considered more energy-efficient than PoW, as it does not require extensive computational work. Validators are chosen to create new blocks based on their stake, promoting security and energy efficiency in the network.