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proof of stake

A way to secure a blockchain by having people lock up money to validate transactions.

Proof of stake is a method for securing a blockchain network and deciding who gets to add new transactions. Instead of computers racing to solve complex math puzzles (as in proof of work), validators lock up cryptocurrency as collateral. The network then selects validators to propose new blocks, usually based on how much they’ve staked. If a validator acts dishonestly, they lose some or all of their staked coins.

Blockchains use proof of stake to avoid the massive energy consumption of proof of work systems. It also makes attacking the network expensive, since attackers would need to own a large amount of cryptocurrency and risk losing it. When you see proof of stake mentioned, it usually indicates a blockchain that prioritizes efficiency, or discussion about a network switching from proof of work to reduce environmental impact.

Written once as a plain-English reference, not as advice. Nothing here is a recommendation to buy or sell anything.

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