What is Proof of Stake?
The short answer
A consensus method (used by Ethereum) where network security comes from participants locking up coins as collateral.
Instead of competing computing power, proof-of-stake networks rely on validators risking their own staked coins to behave honestly. It uses dramatically less energy than proof of work.
Related terms
Full glossaryLayer 1
A blockchain's base network — Bitcoin, Ethereum, and Solana are all layer 1 networks.
Non-Custodial Wallet
A wallet where only you hold the keys — full control, and full responsibility.
Staking
Locking up crypto to help secure a proof-of-stake network, in exchange for rewards.
FOMO (Fear of Missing Out)
The anxious urge to buy something because its price is rising fast and everyone seems to be talking…
KYC (Know Your Customer)
The identity verification process required by regulated exchanges before you can trade.
HODL
Crypto slang for holding an asset long-term rather than trading it, originating from a famous misspelling of "hold."
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