In Financial Terms, How Is the 'Stake' in PoS Similar to 'Collateral' in Secured Lending? ▴ Learn

In Financial Terms, How Is the ‘Stake’ in PoS Similar to ‘Collateral’ in Secured Lending?

The 'stake' in Proof-of-Stake is similar to 'collateral' in secured lending because both are assets pledged to guarantee a commitment and mitigate risk. A PoS stake is pledged to secure the blockchain and is subject to loss (slashing) if the validator misbehaves.

Collateral in secured lending is pledged to guarantee repayment of a loan and is subject to seizure if the borrower defaults.

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