Proof-of-Stake

Disambiguation: PoW vs PoS

Proof-of-Stake (PoS) is a consensus mechanism that is used by some blockchain networks to achieve distributed consensus. In a PoS system, users (also known as stakeholders) are required to "stake" a certain amount of their tokens in order to participate in the network and validate transactions.

The process of staking involves holding a certain amount of tokens in a wallet and leaving them "locked" for a certain period of time. This shows that the user is committed to the network and has a vested interest in its success.

The validation of transactions and the creation of new blocks on the blockchain is then determined by a combination of the amount of tokens staked by the user and a random selection process. The more tokens a user has staked, the higher their chances of being selected to validate a transaction and earn a reward.

The PoS system is designed to provide a more energy-efficient and scalable alternative to PoW. Because it does not require users to solve complex computational puzzles in order to validate transactions, it is less resource-intensive and can potentially support a higher transaction throughput.