Which consensus algorithm involves using ownership stake to confirm transactions?
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Sep 29
Proof of Stake (PoS) consensus algorithm involves using ownership stake to confirm transactions. In PoS, validators are chosen to create new blocks and validate transactions based on the number of coins they hold and are willing to "stake" as collateral. Validators with a higher stake have a higher chance of being chosen to create new blocks and earn rewards. This system is designed to incentivize validators to act honestly and secure the network.