Proof of Stake (POS)

Proof of Stake is a consensus mechanism used by blockchain networks to validate transactions and create new blocks. In PoS systems, validators are chosen to produce new blocks based on the amount of cryptocurrency they hold and are willing to stake as collateral, rather than relying on energy-intensive mining processes like in Proof of Work (PoW) systems. This approach enhances energy efficiency and aligns validators' interests with the network's security, as they risk losing their staked assets if they act maliciously. For web3 developers, implementing or interacting with PoS-based networks involves understanding staking dynamics, validator selection processes, and the economic incentives that maintain network integrity. PoS systems often offer improved scalability and reduced environmental impact compared to PoW systems, making them an attractive choice for modern blockchain applications.