Cryptocurrency Lexicon Letter P

Proof of Stake (PoS)

A blockchain consensus mechanism where validators lock up native cryptocurrency tokens to earn the right to validate blocks.

Proof of Stake (PoS) glossary illustration
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In-Depth Explanation

PoS eliminates the energy consumption of physical mining rigs by using economic bonded capital as the security incentive.

Practical Market Example

Real-World Application

Ethereum transitioned to Proof of Stake during 'The Merge' in September 2022.

Related Calculators

Related Educational Guides

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