What is Proof of Stake?
Proof of Stake is a consensus mechanism where validators lock up (stake) cryptocurrency as collateral. They're selected to create blocks based on their stake size.
PoS vs PoW
- PoS: Energy efficient, requires capital
- PoW: Energy intensive, requires hardware
Slashing
Validators who act maliciously or go offline can have their stake "slashed" (partially confiscated) as punishment.