Proof-of-Stake

Blockchain

 

Proof-of-stake is a method for blockchains to process transactions on their network without the computationally-expensive (and energy-intensive) cryptographic algorithms typical of Bitcoin and Ethereum.

Rather than having “miners” that work through cryptographic puzzles, nodes in proof-of-stake networks typically have validators who stake a cryptocurrency which they lose in the event they attempt to hack the network.

Further Exploration

Proof-of-Work vs. Proof-of-Stake