Proof of Stake (PoS) is a famous blockchain consensus mechanism utilized to achieve agreement and help enforce network trust and security. Ethereum is transitioning from Proof of Work (PoW) to Proof of Stake (PoS). Ethereum’s staking protocol uses validators instead of miners. These validators “validate” both transactions and blocks using their committed and staked ether as collateral. During validation, other validators are required to validate transactions and blocks, and if consensus among validators is met, they earn validation rewards. If a validator acts maliciously or verifies incorrect transactions, they are penalized and lose a portion of their stake. Proof of Stake (PoS) uses considerably less energy than Proof of Work (PoW).
NFT Term
Proof of Stake (PoS)
Definition of Proof of Stake (PoS) from the NFTguild.com glossary.
