What is Proof of Stake?

Proof-of-stake (PoS) is a type of consensus algorithm that is used by some blockchain platforms to achieve distributed consensus. In a PoS system, the creator of a new block is chosen in a deterministic way, depending on their stake in the network. “Stake” refers to the number of coins or tokens that a user holds in the network.

In a PoS system, users who hold a large number of coins are more likely to be chosen to create a new block, because they have a higher stake in the network. This is in contrast to proof-of-work (PoW) systems, in which the creator of a new block is chosen based on their ability to solve a computationally difficult problem.

One advantage of PoS over PoW is that it is less resource-intensive, because it does not require users to perform computationally intensive work in order to participate in the consensus process. This makes it potentially more energy efficient and less costly to operate.