Proof of stake

Proof of stake is a consensus method in which validators are selected to create blocks based on the amount of coin they lock up as collateral, rather than on computing power. Honest behaviour earns rewards, while dishonesty can cost part of the stake, aligning incentives to secure the chain with far less energy than mining.

A common misconception is that the richest participant simply controls everything; protocols use randomisation and penalties to limit that. For a side-by-side comparison with mining, see proof of work vs proof of stake.