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PoS
(Proof of Stake)
PoS (Proof of Stake) is an energy-efficient alternative to PoW, where validators are chosen based on staked cryptocurrency (e.g., ETH validators must stake 32 ETH). Reduces energy use by ~99% but requires robust slashing mechanisms to penalize malicious actors.
Ethereum's 2022 "Merge" to PoS cut its energy demand from 112 TWh/year to 0.01 TWh. PoS enables faster transactions and lower fees but risks centralization (whales dominate staking). The SEC views PoS tokens more skeptically due to staking-as-a-service offerings (e.g., Kraken's $30M settlement). Projects like Cardano and Solana use PoS variants (DPoS, PoH) for scalability.
Ethereum's 2022 "Merge" to PoS cut its energy demand from 112 TWh/year to 0.01 TWh. PoS enables faster transactions and lower fees but risks centralization (whales dominate staking). The SEC views PoS tokens more skeptically due to staking-as-a-service offerings (e.g., Kraken's $30M settlement). Projects like Cardano and Solana use PoS variants (DPoS, PoH) for scalability.