What is Proof of Stake (PoS)?

Proof of Stake (PoS) is a family of mechanisms that ties economic stake in a network’s native asset to validation and consensus duties. Validators propose blocks and check records under that network’s rules.

What does stake do in a PoS network?

Stake provides an economic basis for participation. Selection, voting weight, rewards and penalties vary across networks. For example, Ethereum’s PoS documentation describes stake penalties for particular misconduct; those rules should not be assumed to apply to every PoS network.

The difference from Proof of Work lies in the basis for participating in consensus. A PoS label alone guarantees neither a high return nor uninterrupted service.

Is delegation the same as operating a validator?

No. On networks that support delegation, a holder can direct stake weight to a chosen validator without running the server and validation software. Solana’s stake account documentation explains the separation between delegation and withdrawal authority.

For example, someone delegating SOL from a stake account they control assigns a validation role without automatically transferring withdrawal authority to the validator. An exchange’s custodial product called “staking” need not provide the same control.

Example

Imagine Alice delegating 10 SOL from a Solana stake account she controls. The network takes active stake into account when assigning validator weight; delegation alone does not give the validator Alice’s withdrawal authority. Exiting the position follows the network’s activation and deactivation rules. The example promises neither a fixed return nor an instant withdrawal.