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What is Proof of Stake (PoS)?
Proof of Stake is a consensus mechanism where validators stake (lock up) their coins as collateral to validate transactions. It uses 99.95% less energy than Proof of Work.
Full Explanation
Proof of Stake (PoS) is a consensus mechanism where validators are selected to create new blocks based on the amount of cryptocurrency they "stake" (lock up as collateral). Misbehaving validators face "slashing" (losing staked coins). PoS uses ~99.95% less energy than PoW. Ethereum switched to PoS in September 2022 ("The Merge"). Other PoS chains: Cardano, Solana, Polkadot. Variations include Delegated PoS (DPoS), Nominated PoS, and Liquid Staking. PoS enables staking rewards for token holders.