What Is Proof-of-Stake? with example

What Is Proof-of-Stake? with example 

Generally, more accepted as the better form of minting, the Proof-of-Stake method is done through staking. Staking refers to putting pre-existing cryptocurrency at stake, which means that users who wish to validate transactions in exchange for cryptocurrency must first wager a significant amount.

 This amount is referred to as their stake. Stakeholders are then randomly selected to verify transactions on a blockchain. The more coins an individual stakes, the more likely they are to be selected.

Stakeholders cannot spend the amount that they have put forth as their wager. If they breach the rules or are caught recording inaccurate data, they risk losing their entire wager.

 In this process, stakeholders are willing to bear the risks of staking huge amounts in return for the chance to make a profit.

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