What is Proof-of-Stake (PoS)?
Let's find out Proof-of-Stake (PoS) meaning, definition in crypto, what is Proof-of-Stake (PoS), and all other detailed facts.
Proof-of-Stake (PoS) is another blockchain consensus process that ensures the blockchain's integrity in addition to Proof-of-Work (PoW). It essentially has a network of validators who have to stake native tokens of a certain blockchain to be able to validate and create new blocks. Validators get block rewards for their work.
By confirming blockchain transactions, PoS prevents the occurrence of double counting, which happens when the same token is used for more than one transaction. It’s quite easy to spot double counting in a centralized environment (e.g. a bank overseeing fiat money), but with decentralized systems (e.g. cryptocurrencies) it would be really hard to do without PoS or any other consensus mechanism for that matter.
Many experts believe that PoS is substantially more energy-efficient and secure than PoW, even though some skeptics challenge the validity of these claims. In fact, miners under PoW sometimes even need to sell their coins to pay for their energy bills. In terms of security, because of the structural way PoS ranks compensation, it is less prone to cyberattacks.