Proof of Stake is a consensus mechanism where validators are chosen to create new blocks based on their stake (ownership) in the network rather than computational power.
Key differences from PoW:
Aspect
PoW
PoS
Selection
Computational power
Stake amount
Energy consumption
High
Low
Hardware requirements
Specialized mining equipment
Standard computers
Security model
Economic cost of mining
Economic value at stake
Finality
Probabilistic
Can be deterministic
PoS Process:
Validators lock up tokens as stake
Algorithm selects validator based on stake and randomness
Selected validator proposes a block
Other validators attest to the block's validity
Validator receives rewards proportional to stake
Rewriting in plainer words…
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