Proof of Stake Basics

Proof of stake (PoS) selects block producers based on staked tokens rather than computational work. Energy use drops dramatically versus proof of work; economic security replaces hardware arms races.

Protocols pseudo-randomly assign validators to propose blocks weighted by stake. Larger stake increases selection frequency and rewards — and increases slashing exposure if misconfigured or malicious.

Ethereum achieves finality when a supermajority of stake attests checkpoints, making reversals economically prohibitive. Other PoS chains differ in finality speed — some confirm in seconds, others in minutes.