💰 Earn Crypto by Securing the Network
Discover how Proof of Stake lets you earn rewards without expensive mining hardware
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0 / 5 completed🔷 What is Proof of Stake?
Proof of Stake is an energy-efficient consensus mechanism where validators are chosen to create blocks based on how much cryptocurrency they've "staked" (locked up) as collateral.
🎯 The Core Idea
Instead of miners competing with electricity and hardware, validators put up economic stake. The more you stake, the higher your chance of being selected to propose the next block.
🎮 Validator Selection Demo
Click on validators to see how stake amount affects selection probability:
Energy Efficient
Uses 99.95% less energy than proof of work. No mining hardware or massive electricity consumption required.
Economic Security
Validators risk their staked funds. Attacking the network means losing your investment - economic disincentive.
Proportional Rewards
More stake = higher chance of selection = more rewards. Similar to owning more shares in a company.
Fast Finality
Transactions finalize in minutes, not hours. No need to wait for multiple confirmations like proof of work.
💡 Real-World Analogy
Proof of stake is like a lottery where:
- Your stake = Number of lottery tickets you hold
- Being selected = Winning the right to create next block
- Reward = Transaction fees + new coins (like Powerball prize)
- Cheating = Losing all your tickets permanently (slashing)
Key difference: In PoS, your "tickets" (stake) are your own money at risk, not electricity spent.
📊 PoW vs PoS at a Glance
| Aspect | Proof of Work | Proof of Stake |
|---|---|---|
| Energy Use | Very High (150 TWh/year) | Very Low (~0.01 TWh/year) |
| Hardware | Specialized ASICs | Regular computer |
| Barrier to Entry | High (equipment cost) | Medium (32 ETH minimum) |
| Block Time | ~10 minutes (Bitcoin) | ~12 seconds (Ethereum) |
| Finality | Probabilistic (1 hour+) | Faster (~15 minutes) |