All For One
  • Getting Started
    • Introduction
    • Installing the App
    • Creating a Wallet
      • Create via Seed Phrase
      • Create via SSO
      • Create via SSS
    • Importing a Wallet
      • Import via Seed Phrase
      • Import via Private Key
      • Import via SSS
      • Import via Hardware Wallet
    • Searching Crypto Assets
    • Buying Crypto Assets
      • Buying Coins with Fiat
      • Buying Tokens with Coins
    • Selling Crypto Assets
      • Selling Coins for Fiat
      • Selling Tokens for Coins
  • Token Research
    • Token Charts
    • Token Transactions
    • Token Whale Watching
    • Token Liquidity Info
  • Wallet Management
    • Supported Blockchains
    • Importing Tokens
    • Sending Crypto Assets
    • Receiving Crypto Assets
    • Wallet-Specific Settings
      • Enabling Chains
    • Global Wallet Settings
      • Collapse Defaults
      • Condensed View
      • Sort Tokens
      • Hide/Rearrange Wallets
  • User Settings
  • ECLIPSE™ Rankings
  • Security Features
  • Glossary
    • Definitions
      • Self-Custody Wallets
        • Public Addresses
        • Seed Phrases
        • Private Keys
        • Shamir's Secret Sharing
        • Multi-Chain Wallets
        • Hierarchical Determination
      • Smart Contracts
        • Tokens
        • NFTs
        • Staking Pools
      • Gas
      • Decentralized Exchanges
        • Automated Market Makers
        • Liquidity Pools
        • CPMM Formula
      • Decentralization
        • Distributed Consensus
          • Proof-of-Work
          • Proof-of-Stake
        • Decentralized Applications
        • Web3
        • Blockchains
          • Blockchain Explorers
    • Disambiguation
      • Coins vs Tokens
      • Seed Phrase vs Private Key
      • DEXs vs CEXs
      • Fungible vs Non-Fungible Tokens
      • PoW vs PoS
Powered by GitBook
On this page
  1. Glossary
  2. Definitions
  3. Decentralization
  4. Distributed Consensus

Proof-of-Stake

PreviousProof-of-WorkNextDecentralized Applications

Last updated 2 years ago

Disambiguation:

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.

PoW vs PoS