Proof of Stake (PoS)
Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and create new blocks. In PoS, block validators or “forgers” are selected based on the amount of cryptocurrency they hold and “stake” in the network.
Validators must hold a certain amount of cryptocurrency in order to participate in the consensus process, and they are chosen randomly to validate transactions and create new blocks based on their stake, wichi is determined by the quantity of cryptocurrency they hold. Validators are rewarded with transaction fees and newly minted cryptocurrency.
PoS provides various advantages over PoW, including lower energy consumption, reduced centralization, and increased security. By minimizing the need for energy-intensive mining, PoS networks are more energy-efficient and environmental friendly.