Home / Education / Glossary / Proof-of-stake (PoS)

Proof-of-stake (PoS)

Proof-of-Stake (PoS) is a blockchain consensus mechanism in which validators are chosen to create new blocks and secure the network based on the amount of cryptocurrency they “stake” or lock up as collateral.

Unlike Proof-of-Work (PoW), PoS doesn’t rely on energy-intensive mining but rather rewards participants with transaction fees and new coins. It’s considered more energy-efficient but can be criticized for potential centralization among validators with significant stakes. Ethereum and Cardano are prominent blockchains that have implemented PoS.