PoS (Proof of Stake)

A positive balance in crypto refers to having more assets than liabilities in your account, indicating a net gain or profit from trading activities.

Proof of Stake (PoS) is a consensus mechanism used to validate transactions and create new blocks in a blockchain. Unlike Proof of Work, which requires participants to solve complex mathematical problems to secure the network, PoS allows validators to create new blocks based on the number of coins they hold and are willing to “stake” as collateral.In PoS, users who wish to validate transactions must lock up a certain amount of their cryptocurrency. The probability of being chosen to validate a block is often proportional to the amount of cryptocurrency staked. This approach reduces the energy consumption associated with mining since it eliminates the need for extensive computational power.One of the benefits of PoS is that it encourages users to hold onto their coins rather than sell them, promoting network stability. Additionally, PoS can offer faster transaction times and lower fees compared to Proof of Work systems. As a result, it has gained popularity as a more sustainable alternative for securing blockchain networks.

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