GlossaryIntermediate
Proof of Stake
A consensus method that uses committed assets and validator rules to coordinate blockchain updates.
Proof of stake selects validators to propose and check blocks based on assets committed to the protocol. Validators must follow the network's rules and may face penalties for certain dishonest behavior.
Proof of stake avoids the mining competition used by proof of work, but it introduces its own design questions around validator participation, concentration, rewards, and penalties.
Examples
- Ethereum uses proof of stake to coordinate validators.
- Staking outcomes depend on protocol rules and risks; the term does not imply a guaranteed return.