Proof of Stake (PoS)

Proof of stake (PoS) is a consensus mechanism in which participants lock up, or stake, the network's own coins for the right to propose and validate new blocks. Instead of spending electricity on puzzles as proof of work does, the protocol selects block producers largely at random, weighted by how much each has staked. Honest work earns rewards paid in the network's coin, while provably dishonest behaviour can destroy part of a validator's stake, a penalty known as slashing. Ethereum moved to proof of stake, and most newer chains launched with it. Supporters point to far lower energy use; critics note that influence can concentrate among large holders and a handful of staking providers, and that staked funds may be locked or exposed to operator error.