Practical Law Glossary Item w-039-8754 (Approx. 3 pages)
Glossary
Proof of Stake
One of two common blockchain consensus validation mechanism, in which network participants (known as validators) are rewarded a proportional fraction of digital tokens locked into a staking pool. A validator's chance of verifying a block in the chain is proportional to its stake. The validator earns tokens native to that blockchain (native tokens) in return for its stake once the block is validated.