Proof of stake

A consensus method in which validators lock up cryptocurrency as collateral for the right to propose and confirm blocks.

• Validators are chosen in proportion to their stake; honest work earns new coins and fees, typically a few percent a year.
• Provable misbehaviour, such as signing two conflicting blocks, triggers 'slashing': part of the stake is destroyed.
• Ethereum switched from proof of work in 2022, cutting its energy use by over 99.9%.
• Security rests on the value at stake; concentration in a few exchanges and staking services is the main centralisation concern.