Proof of Stake (PoS)

An alternative consensus mechanism that is less energy intensive than proof of work.

With proof of stake, there are no miners but instead validators. Validators must stake a certain amount of the network's cryptocurrency in a smart contract in order to validate transactions.

Validators are chosen based on a set order to validate the next block of transactions and be rewarded with newly issued cryptocurrencies from the network (also known as the 'block reward'). 

Validators who incorrectly validate a transaction or fail to keep their nodes online can lose all or part of their stake through a penalty called ‘Slashing’.

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