All terms
Securing a chain by requiring validators to lock capital they can lose.
Validators deposit tokens as collateral and are chosen to propose and attest blocks. Misbehavior is punished by slashing part of that stake.
It uses almost no energy compared with proof of work, and it makes attacks costly through capital at risk rather than electricity spent.
Ethereum requires 32 ETH to run a validator, or you can stake smaller amounts through a pool.
That staking is the same as depositing at interest. You are being paid to help run a network and you can be penalized for failing at it. The rewards are new issuance rather than a return on capital, so the token you hold is being diluted alongside you.
Common questions
Does proof of stake make the rich richer?
Is proof of stake less secure than proof of work?
Where this comes up on the site
The guides that actually use this word, rather than a list of everything we have written.
Where to go next
More technology terms
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