What is Proof of Stake (PoS)? Understand what supports many cryptos today!
Have you ever wondered how cryptocurrencies work behind transactions?
Today I'm going to explain to you simply what Proof of Stake (PoS) is — one of the main validation mechanisms in the crypto world! 👇
🔐 Proof of Stake, or "Proof of Participation", is a method used to validate transactions on blockchains.
Unlike Proof of Work (PoW), which requires computational power, in PoS those who validate the blocks are the holders of the coins!
💡 How does it work?
Those who own a certain amount of cryptocurrency "lock" (stake) their coins in the network. In return, they can be chosen to validate transactions and receive rewards. The more coins you leave in stake, the higher your chances!
🎯 Advantages of PoS:
🌱 Lower energy consumption (more sustainable)
🚀 Faster and scalable
💰 Possibility to earn yields with staking
🔗 Cryptos that use PoS: Ethereum (after The Merge), Cardano, Solana, and many others!
Want to learn more about staking or how to participate? Stay with me here and don't forget to follow! 😉
