What is Proof of stake?
Consensus by locking tokens to propose and attest blocks, with slashing for misbehaviour.
Validators lock a stake and are chosen to propose blocks in proportion to it. Behaviour is observed by other validators; provable misbehaviour burns part of the stake.
It replaces energy cost with capital cost, which also creates a yield — and a set of questions about who owns enough stake to matter.
Related terms
- StakingDeFi
Locking tokens to back a network or a protocol, usually for a yield of new issuance or fees.
- Proof of workBasics
Consensus by spending compute to find a hash below a target; Bitcoin's original mechanism.
- ValidatorDeFi
A node that proposes and attests blocks in a proof-of-stake network.