Proof of Stake (PoS)

Proof of Stake is a consensus algorithm that is used by by cryptocurrencies to validate transactions. In Proof of Stake algorithm there are no miners who use powerful computing chips to mine a cryptocurrency instead there are block creators who are randomly chosen by the system depending on how much of that cryptocurrency they own and how long they have been holding it. The advantage a Proof of Stake algorithm is that it uses less energy which is environmentally friendly and cost effective.