Proof-of-Stake News

Proof-of-stake (PoS) is a consensus mechanism in blockchain networks, serving as an energy-efficient alternative to proof-of-work (PoW). In PoS, validators are chosen to create new blocks and validate transactions based on the number of coins they hold and are willing to “stake” as collateral.

Unlike PoW, which requires significant computational power, PoS relies on the concept of economic security, incentivizing participants to act honestly to protect their investments. Validators are rewarded with transaction fees and newly minted coins, promoting network security and efficiency.

In 2022, Ethereum transitioned to a proof-of-stake mechanism, prioritizing enhanced security, reduced energy consumption and improved scalability for implementing new solutions, contrasting with the earlier proof-of-work architecture.