Proof of Stake
An energy-light consensus algorithm in which validators lock up coins as collateral and are chosen to propose blocks based on how much they stake.
Proof of Stake (PoS) replaces miners with validators. Users lock up (“stake”) tokens as collateral; the protocol picks validators to propose and confirm blocks in proportion to their stake and other randomness, and slashes their collateral if they misbehave.
Why it decentralizes differently
PoS removes the hardware race of Proof of Work: anyone can participate by staking. But power concentrates where stake concentrates — so large exchanges, staking pools, and foundations can become outsized validator entities. That concentration is the key risk W3D measures.
Delegation
Most holders can’t run a validator 24/7, so they delegate to pools — convenient, but it can push control back toward a few operators. Checking how many validators actually control the network is part of every PoS audit.
Related terms
Staking, Validator, Consensus Mechanism, Nakamoto Coefficient, Slashing