Proof-of-Stake
Proof-of-Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and create new blocks. Unlike Proof-of-Work, 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 approach reduces energy consumption and increases transaction speed.
In a PoS system, validators are chosen to create new blocks in a pseudo-random manner, often influenced by the amount of cryptocurrency they hold. This method encourages users to hold onto their coins, promoting network stability and security while minimizing the environmental impact associated with traditional mining.