Proof of Stake (PoS)
Proof of Stake (PoS) is a consensus algorithm used by blockchain networks to validate transactions and secure the network. In PoS, validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake" as collateral. Validators are rewarded for their participation with transaction fees or new coins, and they risk losing their staked assets if they act maliciously. PoS is more energy-efficient than Proof of Work (PoW) since it does not require intensive computational power to validate transactions. Example: Ethereum transitioned to PoS with the ETH 2.0 upgrade, reducing its energy consumption and improving scalability.
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