Proof of Stake (PoS) is another consensus mechanism blockchain networks use to achieve distributed consensus. It is considered an energy-efficient alternative to Proof of Work. PoS was first popularized by Peercoin and then adopted and modified by cryptocurrencies like Ethereum.

In Proof of Stake, creating new blocks is called “forging” or “minting” rather than mining. Block creators, also known as validators, are chosen based on their economic stake in the network (i.e., the amount of cryptocurrency they hold and are willing to “stake” as collateral). Unlike PoW, PoS does not require extensive computational power.

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