What Is Proof of Stake?

Proof of stake is a consensus mechanism used by some blockchain networks, including Ethereum. Ethereum’s documentation describes it as the mechanism that processes transactions and creates new blocks.

How it fits into Ethereum

Ethereum uses validators in its proof-of-stake system. Its documentation explains that validators are responsible for ordering transactions and creating blocks, with other validators checking the work under the network’s rules.

That is an Ethereum-specific description. Other networks that use the same broad label can have different eligibility conditions, roles, timing and technical rules.

Not the same as proof of work

Proof of stake and proof of work are different ways a network can organise consensus. Ethereum documentation explains its move to proof of stake; Bitcoin’s technical design is associated with proof of work.

What proof of stake does not promise

The term is not a promise about returns, a recommendation to participate, or a guarantee of safety or value. It identifies an aspect of how a particular blockchain reaches consensus.

Sources

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