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Quantitative Finance · Glossary

What is Proof of work, proof of stake, validator?

Also known as: proof of work · proof of stake · validator

Definition 14.2 Markets III: Commodities, Energy and Crypto · Chapter 14 — Blockchains for Traders

Under proof of work the right to propose a block is won by solving a costly computational puzzle, and the chain with the most accumulated work is the valid one. Under proof of stake it is assigned among validators, participants who lock (stake) the chain’s native token as collateral that can be destroyed if they misbehave, and who propose and attest to blocks.

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