·      By securing a portion of their coins as a stake, they invest in the coins.

·      The blocks will begin to be validated by each validator.

·      If validators come across a block that they believe can be added to the chain, they will validate it by wagering on it.

·      As new blocks are added to the Blockchain, all validators receive rewards commensurate with their wagers, and their stakes rise in line with that.

·      To create a new block, a validator is ultimately selected based on their financial interest in the network.

PROOF OF STAKE (POS)IN BLOCKCHAIN

·      A stake is value/money we bet on a certain outcome. The process is called staking.

·      What is Proof-of-Stake: As the name suggests, nodes on a network stake cryptocurrency to qualify as candidates to validate new blocks and receive fees for doing so. Subsequently, an algorithm selects the node that will validate the new block from the group of contenders. To ensure that the selection is equitable for all users on the network, this selection algorithm takes into account the quantity of stake, or the amount of bitcoin, in addition to other variables including coin-age-based selection and randomness.

·      Coin-age based selection: The method keeps track of how long each potential validator node is active. The likelihood of a node becoming the new validator increases with its age.

·      Random Block selection: The validator is selected by combining the criteria of "highest stake" and "lowest hash value."

The new validator is the node with the best weighted combination of these.

POS WORKFLOW

·      Transactions are made by nodes. These transactions are all gathered into a pool by the PoS algorithm.

·      Every node vying to be the next block's validator raises a stake. To choose the validator, this stake is coupled with additional variables like "coin-age" or "randomized block selection."

·      After confirming each transaction, the validator releases the block. His stake is still locked, and he hasn't yet received the forging reward. This is necessary for the network's nodes to "OK" the new block.

·      The validator receives both the prize and their stake back if the block is deemed "OK." The validator for the current block has its coin-age reset to 0 if the algorithm is selecting validators based on coin-age. He will be given less weight in the subsequent validator election as a result.

·      The validator forfeits its stake and the algorithm marks the block as "bad" if other nodes in the network fail to verify the block. The procedure to forge the new block begins anew at step 1.