A way for a blockchain to agree on new blocks where validators lock up coins as a deposit instead of using mining power.
Crypto Reviewed by Keshav Aggarwal · Updated
In simple words
Imagine a group project where the people who put down a deposit get to check the work. If they cheat, they lose their deposit.
That is proof of stake: trust comes from having something to lose.
The technical side
In proof of stake, validators are chosen to propose and attest to blocks in proportion to the coins they stake. Dishonest behaviour can be punished by slashing part of the stake. It uses far less energy than proof of work; Ethereum’s switch in September 2022 (the Merge) cut its energy use by more than 99%.
Solana, Cardano and most newer chains use proof of stake. Critics say it can favour the largest holders.
Proof of Stake kya hai?
Proof of stake mein woh log blockchain chalate hain jo apne coins lock karte hain. Dhokha diya toh coins kat jaate hain. Bijli bhi kam lagti hai.
Not investment advice. Crypto tokens can lose all their value. Read the risk disclaimer.
Related terms
- StakingCryptoLocking up coins to help run a proof-of-stake blockchain, in return for rewards paid in more of those coins.
- Proof of WorkCryptoA way for a blockchain to agree on new blocks where miners compete to solve a hard maths puzzle using computing power. Bitcoin uses it.
- BlockchainCryptoA shared record of transactions, copied across many computers, where each new block of entries is linked to the one before it.