◈ GLOSSARY · CRYPTO & WEB3
Proof of Stake.
A definition, in plain English — with the books that teach it.
ClearValue Books · reviewed against sources ·
◈ DEFINITION
What it means
Definition
An alternative to proof-of-work where the right to validate the next block is given to participants who lock up ('stake') the network's native coin as collateral. Misbehave and your stake gets slashed. The honest caveat: PoS uses ~99% less energy than PoW, but its security model is newer and depends on stake not being too concentrated — a different set of risks, not zero risk.
◈ IN PRACTICE
Example
Ethereum switched from PoW to PoS in 2022 ('the Merge'), cutting the network's energy use by roughly 99.95%. Validators stake 32 ETH (~$80K-$100K) for the right to propose blocks and earn yield.
◈ RECOMMENDED READING
