What Is Proof of Stake (PoS)?
Definition
Proof of Stake is a consensus mechanism where validators stake cryptocurrency to secure the network — replacing energy-intensive mining with capital-based security.
Proof of Stake secures a blockchain by requiring validators to lock up tokens as collateral. Honest validators earn rewards; dishonest ones lose their stake ("slashing").
- Solana — Proof of History + PoS. Validators stake SOL.
- Ethereum — switched from Proof of Work to PoS in September 2022. Validators stake 32 ETH.
- Base — inherits Ethereum's PoS security as an L2 rollup.
For token creators, PoS means lower gas fees (no mining costs) and faster transaction finality — both of which make token creation and management cheaper and faster.
Related Terms
Blockchain
A blockchain is a distributed, immutable digital ledger that records transactions across a network of computers — the foundational technology behind all cryptocurrencies and tokens.
Staking
Staking is the process of locking cryptocurrency tokens in a smart contract to secure a blockchain network or earn rewards, typically in the form of more tokens.
Gas (Transaction Fee)
Gas is the fee paid to blockchain validators for processing transactions. On Ethereum it's measured in gwei, on Solana it's called a priority fee — both compensate the network for computation.
Mainnet
Mainnet is the live, production blockchain where real transactions with real value occur — as opposed to testnets (devnet, Sepolia) which use fake tokens for testing.