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Intermediate Blockchain

Proof of Stake

A consensus mechanism where validators lock capital and are rewarded or penalised based on honest behaviour.

Proof of Stake at a glance
In Proof of Stake, validators are selected in proportion to their stake, attest to proposals and finalize blocks 1 — VALIDATORS STAKE CAPITAL V1 32 ETH V2 64 ETH proposer ★ V3 32 ETH V4 16 ETH V5 48 ETH Circle size = stake. Selection is weighted random per slot. 2 — PROPOSE, ATTEST, FINALIZE Propose Leader builds a block Attest Validators sign it 2/3 quorum Enough weight agrees Finalized Cannot be reverted No energy race — but skin in the game Validators caught lying get slashed: part of their stake is destroyed. Attacks cost capital instead of electricity.

In simple terms

Instead of burning energy, validators put money at risk. Misbehaving costs them their stake.

Analogy

A security deposit: behave well and you get it back with a reward; cheat and you lose it.

Going deeper

Validators are pseudo-randomly assigned proposal slots and attest in overlapping committees; two conflicting attestations trigger slashing of the deposit. Ethereum's 2022 merge cut network energy use by ~99.95% while keeping the same execution layer.

Common mistake

Assuming Proof of Stake has no cost. The cost is capital at risk, not electricity.

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