Proof of stake

How it is used

Shortened to PoS. Used together with staking, validators and slashing (the penalty for breaking rules). Ethereum and many newer networks use proof of stake. As with PoW, add hyphens before a noun: a proof-of-stake network.

Example sentences

1. Under proof of stake, validators who go offline for too long earn smaller rewards.

2. The new chain launched with proof of stake from day one.

Common collocations

• proof-of-stake network
• move to proof of stake
• PoS chain
• proof-of-stake validator

Related terms

• proof of workA consensus mechanism in which miners use computing power to solve a puzzle before they can add a block. It makes attacks very expensive but uses a lot of energy. Bitcoin uses it.
• stakingLocking up coins in a proof-of-stake network to help secure it, either by running a validator or by delegating to one, in return for rewards. Staked coins may not be available to sell straight away.
• validatorA participant in a proof-of-stake network who locks up coins and runs software to propose new blocks and check blocks proposed by others. Validators earn rewards and can be penalized for misbehaving.
• consensus mechanismThe set of rules that lets the computers in a blockchain agree on which transactions are valid and in what order, without trusting a central authority. Proof of work and proof of stake are the best-known types.
• EthereumA blockchain launched in 2015 that can run smart contracts and applications, not just payments. Its own currency is called ether (ETH), and it has used proof of stake since 2022.

More terms: Consensus, Mining & Staking

• mining
• miner
• halving
• block reward
• hash rate