Proof of Stake (“PoS”)

Proof of Stake (“PoS”) is the consensus mechanism used by numerous blockchains that employs staking to verify transactions. PoS is a widely used alternative to the Proof of Work consensus mechanism. In a PoS blockchain, “validators” contribute – or “stake” – crypto in exchange for the opportunity to validate new transactions and update the blockchain. The blockchain network selects a “winning” validator for each transaction based on the amount and duration of the crypto each validator has in the pool. Other validators then attest to the validity of the transaction/block, the network updates the blockchain and the participating validators receive a reward in the blockchain’s native cryptocurrency.