Proof-of-stake (PoS) is a consensus algorithm used in blockchain technology.
It is designed as an alternative to proof-of-work (PoW) algorithms, which are used in popular cryptocurrencies such as Bitcoin. Unlike PoW, which requires users to perform complex calculations to validate transactions and secure the network, PoS requires users to hold and “stake” a certain amount of the cryptocurrency they want to validate.
In a PoS system, validators are chosen based on the amount of cryptocurrency they have staked and are willing to risk. The more they have staked, the greater the chance they will be selected to validate transactions and add them to the blockchain. If a validator acts maliciously or tries to manipulate the network, they risk losing their staked funds.
PoS offers several advantages over PoW. It uses much less energy and resources, making it more environmentally friendly. It is also more secure, as it reduces the risk of 51% attacks, in which a malicious actor gains control of the majority of the network’s computing power. Additionally, PoS provides a fairer distribution of rewards, as validators are incentivized to act honestly and maintain the security of the network.
