Proof of Stake

What Does Proof of Stake Mean?

Proof of stake (PoS) is a method for cryptocurrency verification through distributed consensus. In a proof of stake system, stakeholders are chosen as creators of a block through analyzing criteria combined with randomization.


Techopedia Explains Proof of Stake

The general idea of proof of stake is meant to provide an algorithm that equalizes probability for figuring out a selection process for block creators. Some additional elements include delegated proof of stake protocols that use various nodes, and randomized proof of stake which, again, uses the principle of randomization.

An alternate method is to use proof of work, where the mining work is actually documented and acts as proof of transaction or asset status. However, proof of work is more energy intensive, and so proof of stake can be a way of saving resources.


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Margaret Rouse

Margaret Rouse is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical, business audience. Over the past twenty years her explanations have appeared on TechTarget websites and she's been cited as an authority in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine and Discovery Magazine.Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages. If you have a suggestion for a new definition or how to improve a technical explanation, please email Margaret or contact her…