Proof of Stake (PoS)Proof of Stake (PoS) systems randomly select block validators from all nodes in the blockchain network. Block validators must lock... Read More is a consensusConsensus is what allows a distributed system (like the blockchain) to function as a decentralized peer-to-peer system without the need... Read More mechanism where block validators are selected based on the number of coinsA digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by... they are stakingStaking is the way many cryptocurrencies verify their transactions, and it allows participants to earn rewards on their holdings. Staking... Read More. In this case, the term staking refers to the act of validators committing funds to the system. So validators can only participate in the process of producing new blocksGroups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records as users buy or sell... Read More if they lock their coins.
The locked funds will then act as collateral, meaning that malicious validators will most likely lose their stake and be kicked out of the network. On the other hand, honest validators will be rewarded as new blocks are produced. Therefore, a PoS blockchainA blockchain is a distributed database that is shared among the nodes of a computer network. Read More achieves distributed consensus according to the economic stake that validators commit to the network.
