Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and add new blocks to the blockchain. Unlike the Proof of Work (PoW) consensus mechanism used in Bitcoin, where miners compete to solve complex mathematical problems to validate transactions, in a Proof of Stake system, validators are selected based on the amount of cryptocurrency they hold (their "stake") in the network.[1][2]
The key principles of Proof of Stake are:
Validators: Validators are the nodes in the network that are responsible for validating transactions and adding new blocks to the blockchain. They are selected based on the amount of cryptocurrency they hold.
Staking: Validators must "stake" or lock up a certain amount of the cryptocurrency to participate in the validation process. The more they stake, the higher their chances of being selected to validate the next block.
