Definition
Proof of Stake is a blockchain consensus mechanism where the right to propose and validate new blocks is linked to the amount of cryptocurrency a participant locks up as a stake. Instead of relying on specialized hardware and energy use, the mechanism uses staked coins and protocol rules to select and reward participants and to discourage dishonest behavior through potential penalties.
In Simple Terms
Proof of Stake is a way for a blockchain to agree on new transactions by using locked-up coins instead of heavy computing power. People who lock up their coins can be chosen to help check and add new data to the chain, and the rules of the system encourage them to act honestly.
Context and Usage
Proof of Stake is commonly discussed when describing how a blockchain secures its ledger and organizes participation among network members. It appears in protocol specifications, token economics discussions, and security analyses of public blockchains. The term is often central in conversations about consensus design, network participation roles, and how blockchains manage incentives and penalties for participants.