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Proof of Stake

August 22, 2026 · Aditya Gupta

Crypto & Blockchain

Proof of Stake (PoS) is a blockchain consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they've locked up ('staked') as collateral. Validators that misbehave lose their stake (slashing). PoS uses dramatically less energy than Proof of Work — Ethereum's switch from PoW to PoS in 2022 ('The Merge') cut energy use 99.95%. Major PoS chains: Ethereum, Cardano, Solana, Cosmos, Polkadot. Critics argue PoS favors wealthy stakers (oligarchic tendencies); proponents note staking is more accessible than expensive mining hardware. Liquid staking derivatives (stETH from Lido) let stakers maintain liquidity.

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