How does proof-of-stake work?

Proof-of-Stake is a consensus algorithm in blockchain networks, where validators stake their coins to participate in block creation and validation. Instead of using computational power like in Proof-of-Work, PoS relies on the validators' economic stake. Validators are chosen based on their stake, and if they validate fraudulent transactions, they risk losing their staked coins. This makes the system more secure and energy-efficient.