Power your knowledge on crypto.
Proof of Stake
What is Proof of Stake?
Another consensus process is PoS. Owners of cryptocurrencies can validate block transactions using proof-of-stake (POS) based on the quantity of staked coins.
When the same coin or token is used for many transactions, double counting happens. Without PoW or PoS, double counting in cryptocurrencies would be exceedingly difficult to prevent.
Industry insiders frequently draw attention to the fact that Bitcoin uses as much electricity as Switzerland. It emphasizes how much stress cryptocurrencies have on power grids. Under PoW, energy costs can occasionally be so high that miners must sell coins to cover their expenses. According to many academics, PoS is much more secure and energy-efficient than PoW.
If miners have more money locked up in the system, they must validate more blocks under Proof-of-Stake. PoS's structure penalizes the miner who attacks the system, making it potentially less vulnerable to cyberattacks.