What is Proof of Stake (PoS)?

Proof of Stake (PoS) is a consensus mechanism used by blockchain networks to achieve distributed consensus. It is an alternative to Proof of Work (PoW), the original consensus mechanism used by Bitcoin. In PoS, instead of miners competing to solve computationally intensive puzzles, validators are chosen to propose new blocks based on the amount of cryptocurrency they hold and are willing to "stake" as collateral. This staked cryptocurrency acts as a financial guarantee of the validator's good behavior.