Proof-of-Stake

The proof-of-stake mechanism focuses on the principle of staking. All nodes in a blockchain network deposit a certain number of cryptocurrencies as collateral to become a validator of the new block, which can earn them rewards later. Due to this staking policy of the PoS mechanism, fewer nodes participate in becoming validators. Those who wish to become a validator put their coins at stake.

This mechanism consumes comparatively less electricity than the PoW consensus mechanism because, in the PoW mechanism, nodes must solve a mathematical puzzle that requires high energy, which is not needed in the PoS mechanism. Solana, Cardano, and Tezos utilize the PoS mechanism.