Proof of Stake (PoS)

Proof of Stake is a consensus mechanism where validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake" as collateral.
Instead of miners solving puzzles, validators are selected algorithmically. Validators are incentivized to act honestly because they have a financial stake in the network; if they validate fraudulent transactions, they risk losing their staked coins.
PoS is more energy-efficient compared to Proof of Work since it doesn't require solving energy-intensive puzzles.
The process aims to achieve network security through the economic incentive of having "skin in the game."