Proof-of-Stake (PoS): Like Proof-of-Work (PoW), Proof-of-Stake (PoS) is a consensus algorithm for verifying and creating blocks on a blockchain. Unlike Proof-of-Work (PoW), it is not the highest computing power but the monetary stake in the network that determines who is allowed to create a new block. To ensure the security of the network, a weighted randomisation algorithm is used to select the validator. Those holding a larger stake have a greater chance of being selected by the algorithm due to the weighting. As a reward for successfully generating a new block, the participant (staker) receives a share of the transaction fees. To gain control of a blockchain operating under the PoS consensus method, 51 per cent of the network’s circulating tokens are required. The second-largest blockchain, Ethereum (ETH), is currently undergoing a transition from PoW to PoS (Ethereum 2.0). (Publication date: 25 May 2021)