What is a Proof-of-Stake protocol?

Last updated: 2025. aug. 9.

Networks such as Bitcoin function because they have miners who are willing to leverage their computing power to process transactions and safeguard the blockchain. This process is known as Proof-of-Work (POW).

Many newer blockchains utilize a different form of achieving consensus, known as Proof-of-Stake (POS), to process transactions. POS is a much less energy-intensive process.

It works like this:

Instead of high-powered nodes processing transactions in exchange for compensation, clients on the POS blockchain or network post a percentage of their crypto holdings as a form of ‘collateral’ to achieve the same result.

Clients who ‘stake’ their crypto holdings on a POS network can earn additional assets as a reward for doing so.

Assets listed on Kraken that currently utilize a POS protocol include but are not limited to Tezos, Cosmos, Cardano and EOS.

Related support articles:

Onchain staking

How to stake

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