How does proof-of-stake system works?

The proof of stake is a consensus mechanism that is used in the blockchain network and it is a process where transactions are confirmed and validated in the network. The proof of stake requires validators to create the new blocks . They would also validate the transaction which is often based on the amount of cryptocurrency that they are willing to stake, which will act as a collateral. The participant on the proof of stake consensus are known as stakers and they are choosing to create a new block.

In a proof-of-stack system, validators are chosen to create new blocks and validate transactions based on the amount of cryptocurrency they have and are willing to stake as collateral. Validators earn rewards for their participation in maintaining the network's security and integrity.

The proof-of -stake algorithm is energy efficient and that is why it is preferable choice compared to the proof of work consensus where there is huge amount of energy involved.

Proof of stake mechanism is considered better than proof of work mechanism. That's because proof of stake does not require mining, and thus energy consumption will be low. This is the reason why Ethereum changed into poof of stake