What Is Proof of Stake (PoS) in Crypto?

By Lyle Daly – Updated Oct 13, 2025 at 8:02 PM EST

Key Points

Proof of stake lets coin owners verify transactions by staking, saving energy over traditional methods.
Staking more coins improves chances of adding blocks and earning crypto rewards, promoting pooling.
Proof of stake's low energy requirement and reward system attract investors for scalability and income.

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A digital display of cryptographic keys. — Image Source: Getty Images

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An infographic explaining the similarities and differences between proof of work and proof of stake as crypto validators. — Image source: The Motley Fool

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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Lyle Daly has positions in Bitcoin and Cardano. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.