Finance glossary
Proof of Stake
Definition
A consensus method where validators are chosen by coins staked.
Proof of stake secures a blockchain by having validators lock up, or stake, coins as collateral, with the chance to validate blocks proportional to their stake. It uses far less energy than proof of work and is the model Ethereum adopted in 2022.
In a sentence
After switching to proof of stake, the network secured itself with staked coins instead of power-hungry mining.
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