Proof of Stake (PoS) is a blockchain consensus mechanism where validators are selected to create new blocks based on the amount of cryptocurrency they stake as collateral, rather than through energy-intensive computation. It is significantly more energy-efficient than Proof of Work.
2012
Proof of Stake first described in Peercoin whitepaper by Sunny King
2020
Ethereum Beacon Chain launches — first PoS layer
2022
The Merge — Ethereum completes full transition to PoS
2023
Ethereum staking surpasses 20 million ETH deposited
Blockchain consensus — securing networks through economic stake rather than computation
💡 Did You Know
Ethereum's transition to Proof of Stake reduced the network's energy consumption by approximately 99.95%
⚠ Controversies & Red Flags
PoS has been criticised for potentially favouring wealthy validators, as those with more tokens have more influence over the network.