Hi Bladers 👾!
Let's talk about Proof of Stake, what it is and how it works.
In order to understand what PoS is, first, let's talk about Proof of Work (PoW). PoW is a consensus mechanism used to verify and track the creation of new cryptocurrencies or transactions on a cryptocurrency blockchain, which is a way to ensure that all transactions are secure.
Proof of stake is an alternative to Proof of Work, its purpose is the same, however, it doesn't work in the same way, PoS uses fewer resources, and miners are replaced for validators👨💻.
How PoS works?
Once a group of transactions is ready to be processed, the system will choose a validator through a random selection process, who will review the block🕵️♂️.
The validator will make sure the transactions in the block are accurate, if so, the blocks are added to the blockchain ✅ and the validator receives crypto rewards for it🏆. However, if a validator provides a block with inaccurate information, they lose some of their holdings as a penalty 💀.