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Proof of stake: definition and meaning

Proof of stake is a consensus method where validators lock up coins as a deposit for the right to add blocks. Ethereum has used it since 2022.

Why it matters

It uses far less energy than proof of work and lets coin holders earn rewards by staking.

Related terms

• Proof of work
  Proof of work is a consensus method where miners spend computing power to add blocks. Bitc…
• Staking
  Staking means locking crypto to help run a proof-of-stake network or protocol in exchange …
• Validator
  A validator is a participant in a proof-of-stake network that checks transactions and prop…

Guides that explain more

• What Is Blockchain?
• Bitcoin vs Ethereum: Key Differences Explained

Educational content only, not financial advice.