Proof of Stake

Proof of Stake (PoS) was created as an alternative to PoW. The term "stake" refers to the concept of "betting".

One of the drawbacks of its predecessor, PoW, is its environmental burden. In response to this criticism, Ethereum has adopted Proof of Stake. This mechanism is known as "Proof of Stake (PoS)". While PoW relies on real-world hardware and energy consumption, PoS is based on the perceived value of the cryptocurrency (in this case, Ethereum's Ether). It can be seen as a trade-off in game theory.

Several well-known blockchains, such as EOS and Cardano, incorporate various elements of PoS. The implicit assumption of Ethereum's transition to PoS has played a significant role in advancing a different perspective from PoW. According to Lauck, "New developers and companies that were building their own blockchains immediately started excluding PoW from their initial design proposals." Can Blockchain Solve the Massive Energy Consumption? The Potential of Ethereum and 'PoS' That Has Begun to Move | WIRED.jp