Proof of Stake

Proof of Stake is a method that cryptocurrency networks use to verify transactions and create new coins, where validators are chosen based on how much crypto they're willing to lock up as collateral. Instead of solving complex math puzzles (like Bitcoin does), the network picks validators randomly—but favors those with more skin in the game. You'll hear about this when researching crypto investments, since it affects how a blockchain operates and how secure it is. For example, if you're evaluating Ethereum, understanding that it switched to Proof of Stake helps explain why its energy use dropped dramatically. Think of it like a lottery where buying more tickets increases your odds, but if you cheat, you lose your entry fee.