Definition
A consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they have staked (locked) as collateral, rather than computational power.
Why It Matters
Proof of Stake is far more energy-efficient than Proof of Work and has become the preferred consensus mechanism for many modern blockchains, including Ethereum since its Merge in 2022.
Example
Ethereum validators must stake 32 ETH to participate in block validation and earn staking rewards.
Related Terms
Proof of Work
Consensus
Staking
Validator