What Is Proof of Stake? Meaning & Example
Definition
Proof of stake is a consensus method where validators lock up coins as collateral to help secure a blockchain. Misbehaving validators can lose part of their stake.
Related terms
Staking means locking crypto in a proof-of-stake network to help validate transactions in exchange for rewards. Rewards are not guaranteed and staked coins may be locked for a period.
Proof of WorkProof of work is a consensus method where miners spend computing energy to earn the right to add blocks. It makes attacking the network very expensive.
EthereumEthereum is a blockchain platform that runs smart contracts and powers many decentralized applications. Its native coin is used to pay transaction fees.
What is Proof of Stake?
Proof of stake is a consensus method where validators lock up coins as collateral to help secure a blockchain. Misbehaving validators can lose part of their stake.
Can you give an example of Proof of Stake?
On a proof-of-stake network, validators are chosen to propose blocks partly based on how much they have staked.