Proof of Stake

Phonetic: /pruf əv steɪk/

Part of Speech: noun

Category: To be determined

A consensus mechanism in which an individual node, or “validator”, validates transactions or blocks. Validators lock up a certain amount of cryptocurrency, such as ether, into a ‘stake’, in order to be able to participate in consensus. If the node validates a block (group of transactions) correctly, then the validator receives a reward. Conversely, if the validator behaves poorly by validating incorrect transactions or by not maintaining sufficient network connectivity, the cryptocurrency they staked can be ‘slashed’, or taken from them and put out of circulation (‘burned’). PoS requires a negligible amount of computing power compared to Proof of Work consensus.

Definition source: Education DAO - mapachurro

Sample sentence

N/A

Additional definitions

A consensus mechanism that reward block validators according to the amount of coins they have at stake.

Source

Extended definition

No extended definition. ...yet

This word came from... the ether

Date first recorded: 2025-01-31

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