Proof of Stake (PoS) is a consensus mechanism whereby a blockchain selects block validators based on the number of coins they stake. The term ‘staking’ refers to the act of locking funds in a system and validators can only take part in the process of validating new blocks if they stake a balance of coins.
Locked funds act as collateral so that malicious validators lose their collateral — and are kicked out of the network — if they fail to act in the best interests of the network. On the contrary, honest validators receive rewards for helping to forge new blocks.
