Proof-of-Stake (PoS) is a consensus mechanism that secures blockchain networks in an energy-efficient, decentralized way. Rather than relying on computational power like Proof-of-Work, PoS allocates mining power based on the stake, or ownership share, that validators hold in the network.
The core principles behind PoS include:
Validators must lock up (or "stake") a portion of their assets to participate. This incentivizes good behavior, as any attempts to attack or subvert the network put their stake at risk of being slashed or destroyed.
PoS requires negligible computational power compared to energy-intensive PoW mining. This reduces the blockchain's environmental footprint and opens up participation to anyone who can acquire and stake the required tokens.
With low barriers to entry, PoS enables a higher number of geographically distributed validators to secure the network. This increases decentralization and makes the blockchain more resilient against attacks.
Validators are incentivized by block rewards and transaction fees. However, bad actors face punitive measures like "slashing" - having their stakes destroyed - which disincentivizes cheating or going offline.
