Tag: Proof-of-Stake (PoS)

Proof-of-Stake (PoS) is a different approach to consensus algorithms. Instead of miners solving complex problems, the PoS method involves validators who hold and lock up some of their coins as ‘stake’. The validators are then chosen to create a new block based on their stake, meaning the more coins held, the higher the chance of being chosen.

Proof-of-Stake (PoS) offers a solution to the environmental criticisms of PoW, as it does not require high energy consumption or expensive mining rigs. Instead, it places trust and power in those who hold more of the cryptocurrency, which theoretically incentivizes good behavior since a validator’s fortune is tied up in the coin’s stability and success.