Proof of Stake
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In Brief
Proof of Stake (PoS) is a consensus mechanism in which validators are chosen to create new blocks based on the amount of cryptocurrency they lock up as collateral (stake), rather than by expending computing power making it far more energy-efficient than Proof of Work.
What Is Proof of Stake?
Proof of Stake (PoS) is a blockchain consensus mechanism used to validate transactions and create new blocks. Instead of relying on miners competing with computing power (as in Proof of Work), PoS selects validators to propose and confirm blocks based on the amount of cryptocurrency they lock up as collateral, known as their stake.
PoS is the consensus mechanism behind major networks like Ethereum (after "The Merge" in 2022), Solana, Cardano, and many others. Its main advantage over Proof of Work is dramatically lower energy consumption.
How Does Proof of Stake Work?
Participants lock up (stake) a minimum amount of the network's coin to become eligible validators.
The protocol selects a validator to propose the next block, with selection weighted by stake size and other factors.
Other validators attest that the proposed block is valid.
Once enough attestations are gathered, the block is finalized and added to the chain.
Honest validators earn staking rewards; validators who act maliciously or go offline can be penalized — a process called slashing.
Why Staking Matters
Energy efficiency — PoS uses a tiny fraction of the energy of Proof of Work.
Lower barrier than mining — no specialized hardware required; a standard computer can run a validator.
Economic security — validators risk losing their stake if they cheat, aligning incentives with network health.
Passive rewards — token holders can earn rewards by staking, directly or through staking services.
Proof of Stake vs Proof of Work
| Feature | Proof of Stake | Proof of Work |
|---|---|---|
| Block creator | Validators chosen by stake | Miners who solve a puzzle |
| Security cost | Locked-up capital | Hardware + electricity |
| Energy use | Low | High |
| Penalty for cheating | Slashing (losing stake) | Wasted electricity |
| Examples | Ethereum, Solana, Cardano | Bitcoin, Litecoin |
What Is Slashing?
Slashing is a penalty in PoS networks where a misbehaving validator — for example, one that signs conflicting blocks or stays offline — loses a portion of its staked funds. This makes attacking the network economically costly and discourages dishonest behavior.
Proof of Stake and Trust Wallet
Trust Wallet makes it easy to participate in Proof of Stake networks. You can stake supported assets like ETH, SOL, BNB, and others directly in the app to earn rewards, all while keeping full control of your private keys as a non-custodial wallet. Your staked assets and rewards remain yours, and you can manage them alongside 10,000+ other cryptocurrencies across 100+ blockchains.