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Proof of Stake

Beginner

Proof of Stake (PoS) is a consensus mechanism where participants validate transactions, create new blocks, and secure the network by locking up (staking) their cryptocurrency. Instead of mining, validators are selected based on the amount of cryptocurrency staked and other factors. PoS consumes less energy than Proof of Work (PoW) and supports decentralised security with long-term economic incentives. It is used by Ethereum (post-Merge) and other modern blockchains.

Related Words

Pump and Dump

Beginner

Pump and dump is a market manipulation scheme where the price of a digital asset is artificially inflated through hype or misleading claims. Once the price spikes, insiders sell off their holdings, causing a sharp drop and losses for others.

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