Proof of Stake

Proof of Stake (PoS) is a consensus mechanism used by blockchain networks to achieve distributed agreement on the state of the ledger, selecting validators based on the amount of cryptocurrency they "stake" as collateral. Instead of competitive computational work (like in Proof of Work), PoS validators are chosen pseudo-randomly based on their stake size and the age of their stake, enabling them to create new blocks, validate transactions, and earn rewards. This method significantly reduces energy consumption compared to PoW, making it a more environmentally friendly and scalable alternative.