Proof-of-Stake (PoS) is a consensus algorithm used by some blockchain networks to validate transactions and create new blocks. Unlike Proof-of-Work (PoW), which requires miners to solve complex mathematical problems to validate transactions and mine blocks, PoS allows for blocks to be validated and added to the blockchain based on the amount of digital currency a node (also known as a validator) holds.
The more digital currency a node has, the more likely it is to be chosen as the validator of the next block. This system incentivizes users to hold onto their digital currency and encourages investment in the network. PoS is considered to be a more energy-efficient alternative to PoW, as it does not require the intensive computational power required by PoW. Some popular blockchain networks that use PoS include Ethereum 2.0 and Cardano.
