• With Proof of Stake (POS), cryptocurrency holders validate block transactions based on the number of coins staked by the validator.

  • Proof-of-stake (POS) was created as an alternative to Proof-of-work (POW), the original consensus mechanism used to validate the blockchain and add new blocks.
  • While PoW mechanisms require miners to solve cryptographic puzzles, PoS mechanisms require validators to simply hold and stake tokens.
  • Proof-of-stake (POS) is considered less risky in terms of the possibility of attacking the network, since the compensation is structured in such a way that makes the attack less profitable.
  • The next block writer in the block chain is randomly selected, with higher odds assigned to nodes with higher stakes.