Proof of Stake (PoS)


Just like proof of work, proof-of-stake is a mechanism designed for deciding who gets to validate the current block and achieving consensus between the network’s nodes on what data is valid. The proof-of-stake consensus mechanism was first suggested on the Bitcointalk forum in 2011. Sunny and Scott proposed the method of staking- where an algorithm would choose block validators based on the number of coins a person has.

Proof-of-stake algorithms achieve consensus by requiring users to put a certain amount of their coins “at stake” to have a chance of being selected to validate a block of transactions and receiving that block reward. Malicious actors risk losing their stake.

The more coins at stake, the higher chance the user will get to validate the next block and reap the block reward (newly minted coins and transaction fees generated in the block). Proof-of-stake validators are called “forgers” instead of “miners”.


  • Energy savings
  • Reduced 51% attack probability
  • Low barrier to entry
  • Built-in incentives


  • Validators with large stakes
  • Voting for multiple forks
  • Other security concerns



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