Proof of Stake (PoS)Proof of Stake (PoS) is a consensus mechanism where block validators are selected based on the number of coins they... Read More systems randomly select blockGroups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records as users buy or sell... Read More validators from all nodes in the blockchain networkA blockchain network is a decentralized system that allows for peer-to-peer transactions. The main components of a blockchain network are... Read More. Block validators must lock their coins (referred to as stakingStaking is the way many cryptocurrencies verify their transactions, and it allows participants to earn rewards on their holdings. Staking... Read More) to participate. Their stake acts as collateral. Malicious block validators risk losing their stake and being kicked out of the blockchainA digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by... network, while honest block validators earn rewards for each new block produced. PoS blockchainsA blockchain is a distributed database that is shared among the nodes of a computer network. Read More achieve distributed consensusConsensus is what allows a distributed system (like the blockchain) to function as a decentralized peer-to-peer system without the need... Read More according to the economic stake block validators commit to the blockchain network.
