Proof of Stake(PoS)
A consensus mechanism where validators are chosen to create blocks based on the amount of cryptocurrency they've staked as collateral.
In-Depth Explanation
PoS replaces PoW's energy expenditure with economic stake. Validators lock tokens as collateral and are penalized (slashed) for malicious behavior. PoS is more energy-efficient than PoW but introduces different tradeoffs around wealth concentration and long-range attack vectors. Ethereum transitioned to PoS in 2022's 'Merge.'
Related Terms
Staking
Locking tokens in a protocol to earn rewards, secure a network, or gain governance rights.
Validator
A participant in a proof-of-stake network who stakes tokens and is responsible for proposing and attesting to new blocks.
Slashing
A penalty mechanism that destroys a portion of a validator's staked tokens for malicious or negligent behavior.
Consensus Mechanism
The method by which a blockchain network agrees on the current state of the ledger and validates new transactions.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.