What it means
A way for a blockchain to agree on new blocks, where validators lock up tokens as a guarantee of honest behaviour.
Validators who cheat lose part of their stake. Ethereum switched to proof of stake in 2022.
How it works
It uses far less energy than proof of work, which Bitcoin uses.
Related terms
| Term | What it means |
|---|---|
| Validator | A computer that checks new transactions and helps add blocks on a proof of stake network. |
| Staking | Locking tokens to help secure a proof of stake network, in return for rewards. |
| Ethereum | The public blockchain where smart contracts and most of DeFi began. |
This glossary explains terms in general. It isn't investment, tax or legal advice.