Definition
Proof of Transfer is a blockchain consensus concept where a new blockchain leverages the security and economic activity of an existing, more established blockchain. Instead of using physical hardware or new token issuance as the primary security resource, it relies on transferring or committing value on a base chain to participate in securing the new chain. The act of transferring value on the base chain serves as a verifiable cost, which helps prevent attacks and aligns incentives for participants. This approach allows the newer network to anchor its state and security properties to the underlying, more secure blockchain.
In Simple Terms
Proof of Transfer can be understood as a way for one blockchain to “borrow” security from another by using real transactions on the older chain as proof. Participants move or lock value on the base blockchain to show commitment, and this commitment is used to help decide who can create or confirm blocks on the newer chain. Because the transfers are recorded on the base chain, they are transparent and hard to fake, giving the new network a stronger security foundation. This lets the newer blockchain benefit from the reliability of an existing chain without recreating its entire security system from scratch.