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What is Proof-of-Stake?

Proof-of-Stake (PoS) is a consensus mechanism used in some blockchain networks to validate transactions and add new blocks to the chain.

In a PoS system, the probability of a node being selected to add the next block to the chain is proportional to the amount of tokens (also known as stake) that the node holds. This means that the more tokens a node holds, the more likely it is to be selected to add the next block.

Instead of solving complex mathematical problems like in Proof-of-Work (PoW) systems, nodes in a PoS system are chosen to add the next block through a randomized "staking" process.

The main advantage of PoS is that it is generally more energy-efficient than PoW, as it does not require as much computing power to reach consensus on the state of the blockchain. This makes it potentially less costly and more scalable than PoW.

However, PoS systems can be vulnerable to certain types of attacks, such as "nothing at stake" attacks, in which nodes can potentially validate multiple conflicting transactions simultaneously. As a result, some argue that PoS systems may not be as secure as PoW systems.