01
Imagine you’re in a raffle, where the more tickets you hold, the higher your chances of being picked to win a prize.
02
In Proof of Stake, instead of racing to solve puzzles like in Proof of Work, the system picks one computer (node) to add the next block to the blockchain. The more cryptocurrency a node is willing to “lock up” as stake, the more likely it is to be chosen.
03
It’s like having more raffle tickets because you put more on the line. The chosen node gets rewarded with transaction fees for adding the block. This method uses less energy and resources than Proof of Work.