Proof-of-Stake (PoS)

In a PoS system, validators or “stakers” are selected to create new blocks and validate transactions based on the amount of cryptocurrency they hold and “stake” as collateral. This means that the more cryptocurrency a staker holds and stakes, the greater their chances of being selected to create a new block and earn transaction fees and rewards.

Unlike in a PoW system where miners use computational power to solve complex mathematical problems to validate transactions, in a PoS system, stakers do not need to use significant computational resources. This makes PoS systems more energy-efficient and environmentally friendly compared to PoW systems.