Homonym: PoS (Point)
Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and create new blocks. Unlike Proof of Work (PoW), which requires miners to solve complex mathematical problems, PoS allows validators to create new blocks based on the number of coins they hold and are willing to "stake" as collateral. This method is considered more energy-efficient and environmentally friendly.
In a PoS system, the likelihood of being chosen to validate a block is proportional to the amount of cryptocurrency staked. This encourages users to hold and invest in the network, promoting stability and security while reducing the need for extensive computational power.