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What Is “Proof-of-Stake” (PoS)?

Proof-of-Stake (PoS) is a consensus mechanism where network participants (validators) are chosen to create new blocks and validate transactions based on the amount of cryptocurrency they have "staked" (locked up) as collateral. PoS is generally more energy-efficient than Proof-of-Work and aims to achieve network security through economic incentives and penalties (slashing).

How Does Proof-of-Stake (PoS) Differ from Proof-of-Work and Why Is It Preferred for Some Financial Applications?
How Does the Economic Security Model of PoS Differ from PoW?
How Does PoW Differ Fundamentally from Proof-of-Stake (PoS)?
How Does Proof-of-Stake Differ from Proof-of-Work as a Consensus Mechanism?