What Is Proof of Stake (PoS) Consensus Mechanism

Cryptocurrency uses a consensus mechanism to perform verification of transactions to keep the distributed ledger secure and safe. There are so many kinds of consensus used by blockchain technology like Proof of Stake, Proof of Work, Proof of Authority, Proof of Capacity, Proof of Identity, and many others.

Today we will discuss one of the most used consensuses Proof of Stake (PoS) called Ethereum blockchain 2.0.

What is Proof of Stake - (PoS)

Proof of Stake - (PoS) is a cryptocurrency consensus used to validate the transaction and helps to store it in the databases or distributed ledger, after successful verification, it helps to create a block in the entire blockchain. This type of consensus doesn’t utilize more computational power like Proof of Work - (PoW) consensus, hence it always stakes crypto to validate the transaction, more stake means more chance to grab the opportunity.

Which Cryptocurrency Use Proof of Stake - (PoS)

Proof of Stake - (PoS) becoming popular day by day as a consensus algorithm due to its efficiency. There are hundreds of cryptocurrencies using PoS consensus, some of the famous cryptocurrencies are given below:

  • Cardano (ADA)
  • Polkadot (DOT)
  • Solana (SOL)
  • Tron (TRX)
  • Cosmos (ATOM)
  • Tezos (XTC)
  • EOS (EOS)
  • Ethereum (ETH)

And many others.

How Proof of Stake - (PoS) Works

  • To play the role in transaction validation by using POS you must have enough coins to stake.
  • It always requires a validator to verify the transactions, a node with a high stake can grab the chance easily.
  • To validate the transaction, the validator needs to stake the coins.
  • Once the transaction is successfully done you would be rewarded by the profit.
  • But when is there any problem occur that may cause the transaction failure, all the staked coin would be slashed.


  • The less computational power required
  • It provides the fast and cheap transaction process
  • Doesn’t require specialized devices
  • It resolves the scalability problem.


  • It is less efficient than POW in terms of security
  • Validators having large stake value can only work in POS
  • All the stake value could be slashed in case of a miner's mistake


Proof of Stake (PoS) is a type of consensus used to validate the transactions and helps to generate a new block in the entire chain, it requires less computational power but yes it needs to take the verification action. It performs fast transactions at a cheap rate furthermore it resolves the scalability issue. The most common drawback is PoS is less efficient than PoW in terms of security.

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