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General TradingP

Proof of Stake (PoS)

A blockchain consensus mechanism where validators are chosen to create new blocks proportional to the amount of cryptocurrency they have staked as collateral, offering an energy-efficient alternative to Proof of Work.

Example

“On the Cardano network, ADA holders delegate their stake to a pool, and the pool's chance of being selected to produce the next block increases with its total staked amount.”