Proof of Stake
Proof of Stake is a way to confirm transactions on a blockchain. It’s one type of consensus mechanism: a set of rules that helps everyone agree on what’s legitimate and what’s not.
By Geoffrey Lyons
Published on Oct 25, 2024
Last modified on Feb 26, 2026
Proof of Stake is a way to confirm transactions on a blockchain. It’s one type of consensus mechanism: a set of rules that helps everyone agree on what’s legitimate and what’s not.
Consensus mechanisms are used in everyday life, too. Company boards use formal rules to make decisions about business strategies. Lawmakers follow strict procedures to propose new legislation. These are different mechanisms (systems) for achieving consensus (agreement).
With Proof of Stake, the rules are simple: some people are selected to check and confirm blockchain transactions. If they follow the rules, they’re rewarded. If they don’t follow the rules, they’re penalized.
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